Book Chapter

Education and Income Distribution

GN Marks

International Encyclopedia of the Social & Behavioral Sciences: Second Edition | Elsevier | Published : 2015

Abstract

This article discusses the relationships between income and education. The first section focuses on the effects of income on various educational outcomes and the second half discusses the relationship between education and earnings. Although the gross bivariate relationship between family income and education is moderately strong, the causal impact of income is very much weaker after taking into account other aspects of socioeconomic background and cognitive ability. Education is almost invariably the strongest influence on earnings and in the United States the returns to education, especially postsecondary education. Although other countries in the 1980s and 1990s also experienced increasin..

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University of Melbourne Researchers