A Research Note: Investigating the Lag Structure of the Education-Income Inequality Relationship

Citation:

Babones, Salvatore, Kandi Felmet, and Jackelyn Hwang. 2007. “A Research Note: Investigating the Lag Structure of the Education-Income Inequality Relationship”. Michigan Sociological Review 21:179-191.

Abstract:

National income inequality is an important indicator of social stratification, the causes of which are little understood. Education is known to be related to income inequality, and presumably prefigures income inequality, but the specific structure of the lag (if any) between education and income inequality has never been studied in detail. We use cross-correlations of education and income inequality data (1960-2000) to investigate the lag structure of the education - income inequality relationship. We find that, in fact, there is no specifically discernible lag period that best fits the data: education in all periods is just about equally correlated with income inequality in all periods. This implies that studies of the effects of education on income inequality will not benefit from lagging the education data, despite good theoretical arguments for doing so. 

Last updated on 06/17/2014