The importance of human capital in the form of education as a determinant of economic development has been highlighted in the theoretical and empirical economic growth literature. Less attention has been paid to the distributional characteristics of educational attainment within and across age groups, as well as between males and females. Exploiting new Age-structured data on educational attainment, we present an analysis of the degree of equality in the distribution of education in Europe over the last decades, both within and across generations. We highlight the differences existing across European regions and the changes experienced over time, as well as those implied by projected trajectories of educational attainment in the future.

Using the IIASA/VID dataset of populations by age, sex and level of education, I calculate education Gini coeffients and decompose the overall degree of educational inequality into age, sex and within-group components. I analyze the relative relevance of these components for inequality reduction and investigate the distributional outcomes of education expansion. I find that, on average, equalization between males and females, younger and older cohorts as well as within these subgroups of the population has significantly contributed to declining educational inequality over the observed sample period around the globe. But the relative role of these components fluctuates in the process of education expansion. First, as improvements are initiated by enhancing the educational opportunities of the youth, the gap between cohorts widens in transition phases but vanishes thereafter. Second, gaps between sexes have been reduced but are predicted to widen again if either males or females are the first to enter higher education levels. To a lesser extent, this is also true for gaps within population subgroups which can be due to the ethnic background or the social and economic status of people. / Series: INEQ Working Paper Series

We propose the use of methods based on the Shapley value to assess the fact that private returns to lower levels of educational attainment should incorporate prospective returns from higher attainment levels, since achieving primary education is a necessary condition to enter secondary and tertiary educational levels. We apply the proposed adjustment to a global dataset of private returns to different educational attainment levels and find that the corrected returns to education imply a large shift of returns from tertiary to primary schooling in countries at all income levels. (authors' abstract) / Series: Department of Economics Working Paper Series

We construct a new dataset of inequality in educational attainment by age and sex at the global level. The comparison of education inequality measures across age groups allows us to assess the effect of inter-generational education attainment trends on economic growth. Our results indicate that countries which are able to reduce the inequality of educational attainment of young cohorts over time tend to have higher growth rates of income per capita. This effect is additional to that implied by the accumulation of human capital and implies that policies aiming at providing broad-based access to schooling have returns in terms of economic growth that go beyond those achieved by increasing average educational attainment. / Series: WWWforEurope

We employ income projection models based on human capital dynamics in order to assess quantitatively the role that educational improvements are expected to play as a driver of future income convergence in Europe. We concentrate on income convergence dynamics between emerging economies in Central and Eastern Europe and Western European countries during the next 50 years. Our results indicate that improvements in human capital contribute significantly to the income convergence potential of European emerging economies. Using realistic scenarios, we quantify the effect that future human capital investments paths are expected to have in terms of speeding up the income convergence process in the region. The income projection exercise shows that the returns to investing in education in terms of income convergence in Europe could be sizeable, although it may take relatively long for the poorer economies of the region to rip the growth benefits. (authors' abstract) / Series: Department of Economics Working Paper Series