Educational Inequality, Economic Growth And Income Distribution In Malaysia

Nor Asriah, Binti Ismail (2008) Educational Inequality, Economic Growth And Income Distribution In Malaysia. [Final Year Project Report] (Unpublished)

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Abstract

This study is undertaken to identify the relationship between the disproportion of education distribution among domestic population as well as the economic growth towards the disparity of income allocation in Malaysia. By using 31 years (1974–2004) data on student enrolment at three levels of educations (EDNEQ), the Gini index, Gross National Product (GNP) growth rate, per capita GNP and annual total population, the variables are tested by employing Augmented Dicky Fuller (ADF) unit root test, Least Square and Correlation Matrix. Consistent with Psacharopoulos (1977) and Lopez (2005), we found that the education variation and growth are positively associated to the income inequality. Then, from the inverse outlook, the income disparity still has a positive relationship to the educational inequality. This study had utilized two models that applied by Psacharopoulos (1977) in evaluating educational difference (EDNEQ), while modifying the regression used by Ram (1981 and 1984) to estimate the inequality of income distribution (YINEQ) among Malaysian households.

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