Abstract
This paper presents new evidence on the relationship between education and income inequality by drawing evidence from 145 countries between 1996 to 2016. Reviewing the economic theories of Simon Kuznets on income inequality and the arguments of Theodore Schultz on the economic value of education, this study uses the Gini index in quantifying income inequality. Findings from this study shows a positive relationship in education and inequality for high, and low-income countries and a negative relationship in middle-income countries. This study also shows that an interaction of education and per-capita growth in GDP worsens inequality while trade and education have a reducing effect on inequality.
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