Reexamining the Economic Growth – Education Inequality – Income Distribution Nexus in Indonesia
Reexamining the Economic Growth – Education Inequality – Income Distribution Nexus in Indonesia

Summary/Abstract: This paper examines the determinants of economic growth, income inequality, and their relationship in the context of education inequality. The results indicate that the relative dispersion of human capital has a disequalizing relationship with income distribution while the absolute dispersion has the opposite effect. This study also shows that economic growth has a significantly disequalizing effect on the income distribution and there is a quadratic relationship between income per capita and inequality (Kuznets’ curve). Finally, human capital investment is positively related to the growth of the economy. Therefore, economic policies should be targeted on equal access to education.

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