Pandej ChintrakarnMahidol University2018-05-032018-05-032011-01-01International Research Journal of Finance and Economics. Vol.61, (2011), 15-19145028872-s2.0-79251630103https://repository.li.mahidol.ac.th/handle/20.500.14594/11851This paper presents empirical evidence on how education is related to income distribution in a panel data set of US states from 1988-2003. Utilizing two-way fixed effects model, the results suggest that education measured by the proportion of the population with at least a collage degree has negative and statistically significant effects on all U.S. States' income inequality measures. Thus our findings indicate that increased education plays a significant role in making income distribution more equal. © EuroJournals Publishing, Inc. 2011.Mahidol UniversityEconomics, Econometrics and FinanceArticleSCOPUS