Interactive Effect of Education Indicators and Income Distribution in Selected Countries of the Islamic Conference Organization

Abstract

Education and income distribution are two important parameters that interactively affect each other. The positive relationship between the synergy of these two indicators has led to the attention of governments in policy-making on these issues. Most of the selected countries of the Islamic Conference studied in this research, do not have favorable conditions in terms of education and income distribution indicators. It is a place of optimism to say; Education can improve income distribution by creating skills and abilities and increasing the power of income generation, which makes the education index prioritize over the income distribution index. Accordingly, education has always been one of the concerns of governments in achieving a fair distribution of facilities and allocations and is among the most important public policies. The purpose of this study is to investigate the effect of education indicators on income inequality in selected countries of the Organization of the Islamic Conference during 2010-2017. For this purpose, the model is estimated in the framework of the panel data system using unit root tests, F-Limer, Hausman, Voldridge and Chi-square statistics. The data required for this study were collected from the World Bank and other related organizations. The results showed that improving education indicators reduces the Gini coefficient or a more equitable distribution of income in society. In addition, the importance of income distribution as one of the factors affecting education has led to an increase in education indicators.

Keywords

• income distribution
• education indicators
• panel data
• islamic conference