Educational Inequality And Educational Attainment

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The next section concentrates on the relationship between [past levels of educational attainment and different levels of development for countries] and the educational attainment in the present. This will help to give insights about the fluctuations of income inequality. Evolution of Educational Attainment
The following regression will assist to look at past levels of educational attainment and since Table 1 already indicated the existence of regional differences in educational attainment, regional dummies will be used for this regression as well:
E_(j,t)=b_(0,t)+b_1 E_(j,t-1)+b_2 σ_(j,t-1)^E+b_3 〖log⁡y〗_(j,t-1)+b_4 [〖log⁡y〗_(j,t-1) ]^2+b_D D_j+v_(j,t) (2)
“The regression includes one-period-lagged values of educational inequality
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In contrast to Regression 3.1, the coefficient for educational- inequality and attainment now turns out to be positive. This illustrates that higher level of educational inequality endorses educational attainment. De Gregorio implies, if educational inequality in an economy is high, the rate of return on education is high too, which therefore motivates people more to invest in education.
Following, social and government expenditures, as another variable affecting educational attainment, are included in Regression 3.3. The results indicate, social expenditures have a positive effect on education, therefore, lead to higher educational attainment. However, the coefficient in the regression also shows that the effect is statistically insignificant.
Lastly, Regression 3.4 adds in the variable of past levels of educational attainment. Though the results show, expenditures are less linked to past levels of education, and more with cross-country variations in the level of
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First scenario would be in an economy with no education at all. An increase in education attainment would affect only a portion of the population. Though the average level of education would increase, so would the inequality. Second scenario would be an economy with all people attaining primary and secondary school, but only a few also attain higher education. An increase in educational attainment would lead the rest of the people to attend postsecondary school as well, and therefore, establish a more equal educational equality. Ultimately, what happens to the educational level when education expands depends on its original level. Consequential, in an economy with a low level of education, an increase in educational attainment would cause a positive marginal increase in educational dispersion, and reversed for high level of

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