Skill versus inequality

This paper explores empirical evidence for a connection between income inequality and skill (advanced-level educated workers share) using panel data methods that take into account cross-section dependency heterogeneity. To assess the associated with skill, we run set 24 developed The Organisation Economic Co-operation Development (OECD) countries from 1995 to 2018. In order determine stationary characteristics of variables, employ Cross-sectionally Augmented Im, Pesaran Shin (CIPS) test approach. Following this, Westerlund (2007), Gengenbach, Urbain, (2016) Panel Cointegration tests, then Dynamic Ordinary Least Squares (PDOLS) estimator. Our results conclude there is relationship in long PDOLS estimator findings show as level employment increases, decreases. addition, according findings, this negative more pronounced United States, whereas it moderate or not valid European countries. obtained are primarily consistent framework presented by Daron Acemoglu (2002, 2003). And these constitute one main contributions study terms supporting Acemoglu's (2003) thesis premium States.