Human Capital, Income Inequality, and Health: Analysing Heterogeneous Dynamics Across Income Groups

Wendy Irena Guerra Castillo; Ci Sheng Wu; Frank Osei‐Kusi

doi:10.1002/app5.70008

journal article Open Access Jan 28, 2025

Human Capital, Income Inequality, and Health: Analysing Heterogeneous Dynamics Across Income Groups

Wendy Irena Guerra Castillo

Ci Sheng Wu

Frank Osei‐Kusi

Asia & the Pacific Policy Studies Vol. 12 No. 2 · Wiley

View at Publisher Save 10.1002/app5.70008

Abstract

ABSTRACTThis paper examines the impact of human capital, gender inequality, and GDP on income inequality across seven regions with different income levels. Utilising panel data from 125 countries from 2000 to 2018, the study employs methods such as Panel Spatial Correlation Consistent dummy variables (PSCC) and panel quantile regression. The findings reveal that income level significantly influences the relationship between human capital and income inequality on GDP. Political stability and total population positively affect GDP in all income groups, whereas gender inequality negatively impacts GDP in high‐income countries but positively in low‐income countries. The study also investigates the correlation between the Gini coefficient and the Gender Inequality Index (GII). Results indicate a positive correlation between the lagged Gini coefficient and its current values, demonstrating the persistence of income inequality. The findings suggest that policymakers can reduce income inequality and promote economic growth through progressive taxation, social welfare programs, and labour market regulations. Policies targeting gender inequality can also influence income inequality and GDP. This research provides insights into the complex interplay between income inequality, gender inequality, and GDP, offering guidance for policymakers to design effective strategies for sustainable economic growth and inequality reduction.

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Details

Published: Jan 28, 2025
Vol/Issue: 12(2)
License: View

Authors

W

Wendy Irena Guerra Castillo

School of Management Hefei University of Technology Hefei China

C

Ci Sheng Wu

School of Management Hefei University of Technology Hefei China

F

Frank Osei‐Kusi

School of Management Hefei University of Technology Hefei China

Cite This Article

Wendy Irena Guerra Castillo, Ci Sheng Wu, Frank Osei‐Kusi (2025). Human Capital, Income Inequality, and Health: Analysing Heterogeneous Dynamics Across Income Groups. Asia & the Pacific Policy Studies, 12(2). https://doi.org/10.1002/app5.70008

Human Capital, Income Inequality, and Health: Analysing Heterogeneous Dynamics Across Income Groups

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