as timeseries data for the gini index for labour income are not available for a wide range of countries the gini indices are based on disposable income and are calculated over the whole population not just the workingage population the estimated coefficients in the gini regressions thus capture more than just the impact of the explanatory variables on labour income inequality for example the coefficient on the unemployment benefit replacement rate captures both the indirect effects whereby a higher replacement rate may reduce employment as well as the dispersion of wages and the direct effect whereby it raises the income of the unemployed technical change is measured by the number of patents per one million inhabitants the stock of human capital is captured by the share of the population with postsecondary education