Research Article
The Nonlinear Effects of Public Education Expenditure on Income Inequality: A Panel Threshold Regression Analysis of 31 Provinces in China
@INPROCEEDINGS{10.4108/eai.2-12-2022.2328710, author={Zehao Lu}, title={The Nonlinear Effects of Public Education Expenditure on Income Inequality: A Panel Threshold Regression Analysis of 31 Provinces in China}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China}, publisher={EAI}, proceedings_a={BDEIM}, year={2023}, month={6}, keywords={public education expenditure; income inequality; threshold effects; human re-sources; wealth stock}, doi={10.4108/eai.2-12-2022.2328710} }- Zehao Lu
Year: 2023
The Nonlinear Effects of Public Education Expenditure on Income Inequality: A Panel Threshold Regression Analysis of 31 Provinces in China
BDEIM
EAI
DOI: 10.4108/eai.2-12-2022.2328710
Abstract
The impact of the scale of public education expenditure on income inequality is affected by many factors, and generally speaking, there is a nonlinear relationship between the two macro variables. This paper constructs a panel threshold model by using China's provincial panel data from 2007 to 2020 to examine the nonlinear relationship between education expenditure scale and income inequality under different income inequality levels. The results show that when income inequality is low, public education expendi-ture will narrow the income gap, while when income inequality is high, public education expenditure will increase the income gap. Therefore, in areas where the income gap is too large, the input of education resources should be biased towards the vulnerable groups, and the government should provide employment opportunities for the economi-cally vulnerable groups, broaden the channels for obtaining employment information, and provide employment security, which is conducive to playing the role of education expenditure in narrowing the income gap.