Human Capital Formation and Income Disparity in Developing Nations: A Panel Data Analyses

Abstract

This study efforts to analyze the impact of human capital formation (HCF) on income disparity in developing nations. The panel dataset of 24 countries from the time period of 2003 to 2018 and panel ARDL is used to estimate the results. The outcomes shows that the variables inflation rate, government final consumption expenditures and exports of goods and services are positively while human capital index is negatively persuading the income disparity in developing nations. To rise HCF, government is to define options to expand education and research as well as to emphasize higher education. In doing that so, low income personnel can enjoy better life.