Economics Commons^™

Does Human Capital Play A Role In The Growing Income Inequality In The Oecd Countries?, Jordan A. Cram

Senior Theses and Projects

Researchers have tried to determine reasons for the growing income inequality in the OECD countries, but human capital is not a reason typically addressed. This paper empirically seeks to determine a relationship between human capital and income inequality using multiple regression analysis. I hypothesize a negative relationship; meaning increases in the independent variable, average human capital in a country, will cause a decrease in the dependent variable, income inequality due to the idea that increases in education should increase the incomes of the poor more than those of the rich. Income inequality will be measured by the Gini coefficient and …