Income Inequality and Higher Education : A Review of the Empirical Evidence

Abstract: Income inequality is considered one of the most pressing issues of our time, which has prompted a large body of scientific research. Education is often mentioned as one of the main factors to decrease inequality. Tertiary education plays a specific role with regard to inequality since it is associated with higher returns than lower levels of education which is thought of as an initial driver of inequality but a means of combating inequality in the long run. Yet the literature seems inconclusive on the matter as research find varying results. This review examines the empirical evidence in order to determine the effect of higher education on income inequality. The findings are still ambiguous since the direction of the effect of an increase in higher education on income differs across studies.