Human capital investments and income inequality in Nigeria: Does institutional quality matter?
The study examines the impact of human capital and institutional quality on income inequality from 1990 to 2021. This study adopts the Kuznets model as its theoretical framework. The unit root test revealed a mixed stationary in the variables which prompts the choice of Autoregressive Distributed L...
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| Format: | Article |
| Language: | English |
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University of Economics – Varna
2024-09-01
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| Series: | Business & Management Compass |
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| Online Access: | https://bi.ue-varna.bg/ojs/index.php/bmc/article/view/70 |
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| author | Adeyemi Michael Anagun Peter Olugbenga Oluwo Peter Minasu Agosu |
| author_facet | Adeyemi Michael Anagun Peter Olugbenga Oluwo Peter Minasu Agosu |
| author_sort | Adeyemi Michael Anagun |
| collection | DOAJ |
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The study examines the impact of human capital and institutional quality on income inequality from 1990 to 2021. This study adopts the Kuznets model as its theoretical framework. The unit root test revealed a mixed stationary in the variables which prompts the choice of Autoregressive Distributed Lag of which its bound test result shows that there is a cointegration in the variables. The long-run results show that government expenditure on education, government expenditure on health, government effectiveness, and domestic credit to the private sector have a positive but not significant effect on income inequality while in the short-run, government effectiveness and domestic credit to the private sector have a positive but not significant impact on income inequality. Moreover, only government expenditure on education affects income inequality in the Nigerian economy positively and significantly. Based on the findings revealed, the study recommends that the government should by all means and economic resources increase the budget of human capital to enhance the reduction of income inequality in the country and place more emphasis on providing education grants and incentives that encourage the reduction of brain drain.
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| format | Article |
| id | doaj-art-32108988474c429e985171fa85626cef |
| institution | Kabale University |
| issn | 3033-0106 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | University of Economics – Varna |
| record_format | Article |
| series | Business & Management Compass |
| spelling | doaj-art-32108988474c429e985171fa85626cef2025-02-11T09:00:21ZengUniversity of Economics – VarnaBusiness & Management Compass3033-01062024-09-0168310.56065/mg84qh74Human capital investments and income inequality in Nigeria: Does institutional quality matter?Adeyemi Michael Anagun0https://orcid.org/0000-0002-5183-799XPeter Olugbenga Oluwo1Peter Minasu Agosu2https://orcid.org/0000-0002-5183-799XDepartment of Economics Education, Lagos State University of EducationDepartment of Economics Education, College of Management and Social Sciences Education, Lagos State University of Education, NigeriaDepartment of Economics Education, College of Management and Social Sciences Education, Lagos State University of Education, Nigeria The study examines the impact of human capital and institutional quality on income inequality from 1990 to 2021. This study adopts the Kuznets model as its theoretical framework. The unit root test revealed a mixed stationary in the variables which prompts the choice of Autoregressive Distributed Lag of which its bound test result shows that there is a cointegration in the variables. The long-run results show that government expenditure on education, government expenditure on health, government effectiveness, and domestic credit to the private sector have a positive but not significant effect on income inequality while in the short-run, government effectiveness and domestic credit to the private sector have a positive but not significant impact on income inequality. Moreover, only government expenditure on education affects income inequality in the Nigerian economy positively and significantly. Based on the findings revealed, the study recommends that the government should by all means and economic resources increase the budget of human capital to enhance the reduction of income inequality in the country and place more emphasis on providing education grants and incentives that encourage the reduction of brain drain. https://bi.ue-varna.bg/ojs/index.php/bmc/article/view/70income inequalityinstitutional qualityKuznets modelARDLHuman capital investment |
| spellingShingle | Adeyemi Michael Anagun Peter Olugbenga Oluwo Peter Minasu Agosu Human capital investments and income inequality in Nigeria: Does institutional quality matter? Business & Management Compass income inequality institutional quality Kuznets model ARDL Human capital investment |
| title | Human capital investments and income inequality in Nigeria: Does institutional quality matter? |
| title_full | Human capital investments and income inequality in Nigeria: Does institutional quality matter? |
| title_fullStr | Human capital investments and income inequality in Nigeria: Does institutional quality matter? |
| title_full_unstemmed | Human capital investments and income inequality in Nigeria: Does institutional quality matter? |
| title_short | Human capital investments and income inequality in Nigeria: Does institutional quality matter? |
| title_sort | human capital investments and income inequality in nigeria does institutional quality matter |
| topic | income inequality institutional quality Kuznets model ARDL Human capital investment |
| url | https://bi.ue-varna.bg/ojs/index.php/bmc/article/view/70 |
| work_keys_str_mv | AT adeyemimichaelanagun humancapitalinvestmentsandincomeinequalityinnigeriadoesinstitutionalqualitymatter AT peterolugbengaoluwo humancapitalinvestmentsandincomeinequalityinnigeriadoesinstitutionalqualitymatter AT peterminasuagosu humancapitalinvestmentsandincomeinequalityinnigeriadoesinstitutionalqualitymatter |