Income inequality and education outcomes: A regression-based approach

Abstract

The issue of income inequality has been a constant problem to both social and economic performance in the global arena. This paper aims at exploring the connection between education outcomes and income inequality through the regression-based decomposition model. The study finds that household-level data on income, as well as data on educational attainment indicate the major factors, which lead to disparities in education among different socioeconomic groups. The results indicate that income of households, education of parents and geographical inequalities are major factors that affect inequality in education. The regression approach to the methodology gives a detailed insight into the role of income-related factors in determining access to education and education outcomes. Policy implications imply that the negative impacts of income inequality on education can be addressed by means of focused measures, including equal school funding, income redistribution, and conditional educational support measures.