Implications of Education on Income Inequality
Jett, Tyler A.
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This paper works to unravel the complexities of income inequality, with a focus on education, through analysis of a case study and relevant data. The analysis focuses on identifying significant factors related to education that influence income and the increased wage gap. Regression analysis is used to analyze the available data sources from The World Bank database. The case study consisted of interviews with individuals in rural Sri Lanka with a wide variety of education levels and incomes. Key variables affecting income within the interviews are then identified. The analysis concluded that increased education expenditure can lead to decreased income inequality. Also, nullifying economic status as an influence on educational attainment through subsidies for the poor could lead to a decrease in income inequality in the future. The analysis ultimately discusses the possible causes and solutions to the rising problem of income inequality, focusing on Sri Lanka, but applying to developing nations.