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Education as a Double-Edge Sword: Examining the Dynamics between Education Expansion and Wage Inequality in Colombia

Serna Velasco, Laura Juanita LU (2023) EKHS12 20231
Department of Economic History
Abstract
This paper provides a comprehensive analysis of the relationship between education and income inequality in Colombia. Using unconditional quantile regressions (UQR) this paper examines the wage returns of different education levels at various points of the wage distribution. Additionally, recentered influence function regressions (RIF) are used to explore the correlation between each education level and two inequality measures. The baseline finding is that, with the exception of higher education, education contributed to the reduction of income inequality. Further examination of three subcategories within the higher education level reveals that technical education produces similar outcomes to basic education, with diminishing returns and... (More)
This paper provides a comprehensive analysis of the relationship between education and income inequality in Colombia. Using unconditional quantile regressions (UQR) this paper examines the wage returns of different education levels at various points of the wage distribution. Additionally, recentered influence function regressions (RIF) are used to explore the correlation between each education level and two inequality measures. The baseline finding is that, with the exception of higher education, education contributed to the reduction of income inequality. Further examination of three subcategories within the higher education level reveals that technical education produces similar outcomes to basic education, with diminishing returns and an increase in inequality. Moreover, while both undergraduate and postgraduate education result in a wage premium, it is only postgraduate education that is associated with a rise in inequality levels. These patterns are influenced by factors such as educational expansion, institutional reforms, labor market dynamics, and potential misallocation of high-skilled workers. The paper highlights the need for a comprehensive approach to education that addresses quality, accessibility, and alignment with labor market demands to effectively tackle inequality and promote a more equitable society. (Less)
Please use this url to cite or link to this publication:
author
Serna Velasco, Laura Juanita LU
supervisor
organization
course
EKHS12 20231
year
type
H2 - Master's Degree (Two Years)
subject
keywords
wage inequality, education expansion, Colombia
language
English
id
9128821
date added to LUP
2023-09-21 10:37:33
date last changed
2023-09-21 10:37:33
@misc{9128821,
  abstract     = {{This paper provides a comprehensive analysis of the relationship between education and income inequality in Colombia. Using unconditional quantile regressions (UQR) this paper examines the wage returns of different education levels at various points of the wage distribution. Additionally, recentered influence function regressions (RIF) are used to explore the correlation between each education level and two inequality measures. The baseline finding is that, with the exception of higher education, education contributed to the reduction of income inequality. Further examination of three subcategories within the higher education level reveals that technical education produces similar outcomes to basic education, with diminishing returns and an increase in inequality. Moreover, while both undergraduate and postgraduate education result in a wage premium, it is only postgraduate education that is associated with a rise in inequality levels. These patterns are influenced by factors such as educational expansion, institutional reforms, labor market dynamics, and potential misallocation of high-skilled workers. The paper highlights the need for a comprehensive approach to education that addresses quality, accessibility, and alignment with labor market demands to effectively tackle inequality and promote a more equitable society.}},
  author       = {{Serna Velasco, Laura Juanita}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Education as a Double-Edge Sword: Examining the Dynamics between Education Expansion and Wage Inequality in Colombia}},
  year         = {{2023}},
}