Relationship Between Inequality and Education in Brazil: An Estimate of Panel Data (1995-2009)

Abstract

The literature dealing with human capital argues that education has a positive effect on labor productivity factor, which results in an increase in the level of wages. Indeed, ceteris paribus, increases in schooling reflected in the increase of the product and may contribute to the reduction in inequality. In this context, the aim of this study is to investigate whether there is an inverse relationship between inequality of income and education for the Federative Units of Brazil between 1995 and 2009. Therefore, part of the econometric methodology of panel data with indicators of income inequality and education, in addition to per capita household income. The results go in the same direction on the subject several evidences to indicate that the variables income and education are inversely correlated with income inequality, with statistically significant results.