ABSTRACT
Many Asian countries in recent decades have experienced relatively rapid economic growth and significantly expanded enrolments in, and graduations from, higher education. This is no coincidence: higher education is both a contributor to, and is caused by, economic growth. As economies become richer and more sophisticated, employers’ demand for highly skilled labour expands and, concomitantly, there is an associated increase in the supply of young, prospective higher education participants. Formal education is a critical determinant of the general economic welfare of individuals, so expanded supplies of highly educated people inevitably affect income inequality.
