Education Demand and the Share of Educational in Income Inequality

Subject Areas : Labor and Demographic Economics

Ali Falahati ¹ , Shahram Fatahi ² , Younes Goli ³ , Somayeh Goli ⁴

1 - Associate Professor, department of economics, razi university
2 - Associate Professor of Economics, Razi University
3 - Ph.D Student in Economics, Razi University
4 - M.A Graduated In Economics, Razi University

Received: 2017-06-06 Accepted : 2017-06-06 Published : 2017-05-22

Keywords: D12, JEL Classification: D11, D110 Keywords: Education Demand, Generalized Logit, Oaxaca-blinder and Machado-Mata Decomposition,

Abstract :

  Abstract This paper, by using household micro-level data over 2010-2014 and utilizing the generalized Logit model and Oaxaca-blinder and Machado-Mata decomposition, investigates the factor affecting educational demands and determining the share of education in income inequality. The results show that increase the parents’ years of educational and decrease in number of children lead to increase the educational demand. The results of decomposition models, also, indicate the share of education in income inequality at the bottom deciles of income is 0.6 and at the top deciles is 2.5 percent.  Averagely, the share of education in income inequality in 2010 was equal to 1.46 and in 2014 to 3.26 percent. To increase the efficiency of education in the country, the policies such as creation increase the relationship between university and industry, quality of education and increase investment in sectors whit higher forward and backward linkage is advised.

References:

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