An Empirical Study on the Impact of Educational Gap on Income Gap

摘要

Both in theory and in experience, education is considered as an effective means of promoting economic growth, increasing household income and reducing income inequality. It is not clear whether the reform of education system in recent years has redefined the relationship between education gap and income gap. Based on the data of six provinces and cities in different parts of China in 1996-2015, we use panel data regression to analyze and prove that the extent to which the income gap is affected by education has risen and education inequality has greatly affected income inequality. Besides, although the narrowing of the education gap has not significantly improved income inequality, there is no denying that education expansion is conducive to control the income distribution gap.