Search results

1 – 10 of over 17000
To view the access options for this content please click here
Book part
Publication date: 26 November 2019

Dipyaman Pal, Chandrima Chakraborty and Arpita Ghose

The present study aims to determine the existence of simultaneous relationship between economic growth, income inequality, fiscal policy, and total trade of the 13…

Abstract

The present study aims to determine the existence of simultaneous relationship between economic growth, income inequality, fiscal policy, and total trade of the 13 emerging market economies as a group for the period 1980–2010. After establishing the existence of simultaneity between the above relationships, a simultaneous panel model has been formulated and estimated incorporating the nonlinearity among the variables as suggested by the existing literature. An inverted U-shape relationship is evident between (1) economic growth, income inequality, and total trade in economic growth equation, (2) income inequality, economic growth, and per capita income in income inequality equation, and (3) total trade and economic growth in total trade equation. Thus, the existence of a two-way nonlinear relationship is highlighted between economic growth, income inequality, and total trade. Apart from these nonlinear relationships, positive and significant effect of (1) gross capital formation, inflation, population growth, human capital, fiscal policy, monetary policy, and domestic credit to private sector on economic growth; (2) civil liabilities on income inequality; (3) gross capital formation and inflation on total trade; (4) total trade, population growth of those aged 65 years and above, political system on fiscal policy is highlighted. Also, negative and significant effect of (1) fiscal policy on income inequality and (2) income inequality on fiscal policy is revealed.

Details

The Gains and Pains of Financial Integration and Trade Liberalization
Type: Book
ISBN: 978-1-83867-004-7

Keywords

To view the access options for this content please click here
Book part
Publication date: 20 May 2003

Jeffrey A Mills and Sourushe Zandvakili

Using decomposable measures of inequality, the implications of household structure are investigated by examining inequality between and within household groups based on…

Abstract

Using decomposable measures of inequality, the implications of household structure are investigated by examining inequality between and within household groups based on the number of exemptions, which correlates with household size, and the filing status, which correlates with the common forms of household structure, i.e. married, single, head of household. Detailed household income data are used to measure income inequality for both pre-tax/transfer and post-tax/transfer definitions of income. These decompositions provide information about the degree of inequality, both before and after taxes and transfers, which is due to household size and filing status. The bootstrap is employed to construct standard errors for the inequality measures and their decompositions, and hypothesis tests are conducted to determine whether the observed changes in the distribution of income are statistically significant.

Details

Fiscal Policy, Inequality and Welfare
Type: Book
ISBN: 978-1-84950-212-2

To view the access options for this content please click here
Article
Publication date: 1 February 1984

KANG H. PARK

The size distribution of income, or income inequality, has long been a concern to scholars in many disciplines tor different reasons. Statisticians have approached the…

Abstract

The size distribution of income, or income inequality, has long been a concern to scholars in many disciplines tor different reasons. Statisticians have approached the distribution of income among individuals as a stochastic process. Economists have sought to explain income distribution by means, of economic and institutional factors. More recently, economists have been interested in the effects of economic growth and government policies on income distribution. Sociologists and political scientists have thought of income inequality as a major source of social revolt or political violence.

Details

Studies in Economics and Finance, vol. 8 no. 2
Type: Research Article
ISSN: 1086-7376

To view the access options for this content please click here
Article
Publication date: 1 January 2004

John Asafu‐Adjaye

This paper investigates the effect of income inequality on health status. A model of health status was specified in which the main variables were income level, income

Downloads
3486

Abstract

This paper investigates the effect of income inequality on health status. A model of health status was specified in which the main variables were income level, income inequality, the level of savings and the level of education. The model was estimated using a panel data set for 44 countries covering six time periods. The results indicate that income inequality (measured by the Gini coefficient) has a significant effect on health status when we control for the levels of income, savings and education. The relationship is consistent regardless of the specification of health status and income. Thus, the study results provide some empirical support for the income inequality hypothesis.

Details

International Journal of Social Economics, vol. 31 no. 1/2
Type: Research Article
ISSN: 0306-8293

Keywords

Content available
Article
Publication date: 23 November 2021

Wilkista Lore Obiero and Seher Gülşah Topuz

This study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.

Abstract

Purpose

This study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.

Design/methodology/approach

The relationship is examined by using the Autoregressive Distributed Lag (ARDL) model by Pesaran et al. (2001) and Toda Yamamoto causality by Toda and Yamamoto (1995).

Findings

Our findings suggest that both internal and public debt harm inequality in Kenya in the long term. Furthermore, a one-way causality from internal debt to income inequality is also obtained while no causality relationship is found to exist between public debt and income inequality. Based on these findings, the study recommends that to reduce income inequality levels in Kenya, other methods of financing other than debt financing should be preferred because debt financing is not pro-poor.

Originality/value

This study is unique based on the fact that no previous paper has analysed the debt and inequality relationship in Kenya. To the best of our knowledge, this will be the first study to analyse the applicability of redistribution effect of debt in Kenya. The study is also different in that it provides separate analysis for public debt and internal debt on their effects on income inequality.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

To view the access options for this content please click here
Article
Publication date: 25 September 2009

Rati Ram

The purpose of this paper is to extend the existing literature on cross‐country disparities by providing measures of cross‐country inequality in human development index…

Downloads
792

Abstract

Purpose

The purpose of this paper is to extend the existing literature on cross‐country disparities by providing measures of cross‐country inequality in human development index (HDI) and real income per capita over the 30‐year period 1975‐2004.

Design/methodology/approach

A well‐recommended inequality index is applied to the data.

Findings

Ten points are noted: first, HDI inequality declined over the period; second, the pace of decline slowed somewhat since 1990; third, magnitude of HDI inequality has been quite small; fourth, inequality in gross domestic product per capita also shows a declining pattern over the period; fifth, there is very high correlation between HDI and per capita income; sixth, despite the high correlation, magnitudes of inequalities in the two variables are dramatically different; seventh, therefore, even very high correlation may not be interpreted as implying similar inequalities in the variables; eighth, cross‐country inequalities in various regions show huge differences; ninth, negative trend in inequalities over the period shows high statistical significance; and tenth, t‐tests for equality of means do not pick up well even huge differences in regional inequalities, suggesting need for considerable caution in the use of such tests.

Originality/value

The primary scientific significance of the work lies in providing the measures of cross‐country inequality in HDI over the 30‐year period; showing dramatically different inequalities in HDI and income despite very high correlation between the two variables; and indicating cross‐country inequalities in eight different regional groups and also across regions.

Details

Journal of Economic Studies, vol. 36 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Book part
Publication date: 8 November 2017

Nicholas Sowels

The financial crisis of 2008 and ensuing recession led to falls in earnings in the United Kingdom, not seen since the Great Depression of the 1930s, and it was only in…

Abstract

The financial crisis of 2008 and ensuing recession led to falls in earnings in the United Kingdom, not seen since the Great Depression of the 1930s, and it was only in 2014 that overall household income returned to its pre-crisis levels. At the same time, according to one official measure, income inequality has actually fallen, although different data indicate no change. This situation follows from several factors, notably the continued growth in pensions, higher earnings of lower-income households as these have worked more since the recovery in 2013, and the continued stagnation of earnings in higher income households (even if very high incomes have continued to pull away from the rest of the population). Incomes of younger workers also remain below their pre-crisis peak. This chapter shows, however, that the picture of poverty and inequality in the United Kingdom is far more complex than suggested by the main measure of income inequality. To this end, it begins by reviewing the definitions of poverty and inequality, in order to provide a broader overview of these pressing but complex social problems. The chapter goes on to examine wealth inequalities, the impact of housing costs on inequality and poverty, and it concludes by presenting recent studies suggesting that Brexit may well lead to future rises in inequality, as higher inflation could well hit lower-income households most.

Details

Inequalities in the UK
Type: Book
ISBN: 978-1-78714-479-8

Keywords

To view the access options for this content please click here
Book part
Publication date: 21 April 2010

Niny Khor and John Pencavel

In the United States, there is little difference in annual income inequality and income mobility between the rural and urban sectors of the economy. This forms a sharp…

Abstract

In the United States, there is little difference in annual income inequality and income mobility between the rural and urban sectors of the economy. This forms a sharp contrast with China where income inequality is greater and income mobility lower among rural households than among urban households. When incomes are averaged over three years and when adjustments are made for the size and composition of households, income inequality among all households differs little between China and the United States in the 1990s. Moreover when pooling rural households and urban households and when measuring annual income inequality and income mobility of the pooled households, the mobility of incomes of households in the United States differs little from that in China. Social welfare functions are posited that allow for a trade-off between increases in income and increases in income inequality. These suggest strong increases in well-being for urban households in China. The corresponding changes in rural China and in the United States are smaller. Four sets of data on households are drawn on to document these findings.

Details

Jobs, Training, and Worker Well-being
Type: Book
ISBN: 978-1-84950-766-0

To view the access options for this content please click here
Book part
Publication date: 26 November 2020

Orsetta Causa and Mikkel Hermansen

This paper produces a comprehensive assessment of income redistribution to the working-age population, covering OECD countries over the last two decades. Redistribution is…

Abstract

This paper produces a comprehensive assessment of income redistribution to the working-age population, covering OECD countries over the last two decades. Redistribution is quantified as the relative reduction in market income inequality achieved by personal income taxes (PIT), employees’ social security contributions, and cash transfers, based on household-level micro-data. A detailed decomposition analysis uncovers the respective roles of size, tax progressivity, and transfer targeting for overall redistribution, the respective role of various categories of transfers for transfer redistribution; as well as redistribution for various income groups. The paper shows a widespread decline in redistribution across the OECD, both on average and in the majority of countries for which data going back to the mid-1990s are available. This was primarily associated with a decline in cash transfer redistribution while PIT played a less important and more heterogeneous role across countries. In turn, the decline in the redistributive effect of cash transfers reflected a decline in their size and in particular by less redistributive insurance transfers. In some countries, this was mitigated by more redistributive assistance transfers but the resulting increase in the targeting of total transfers was not sufficient to prevent transfer redistribution from declining.

Details

Inequality, Redistribution and Mobility
Type: Book
ISBN: 978-1-80043-040-2

Keywords

To view the access options for this content please click here
Book part
Publication date: 16 September 2019

Marko Ledić and Ivica Rubil

The authors study the difference between multidimensional well-being inequality and income inequality and propose a method to decompose the difference between the Gini…

Abstract

The authors study the difference between multidimensional well-being inequality and income inequality and propose a method to decompose the difference between the Gini coefficients of income and equivalent income (EI), a multidimensional well-being measure that respects individual preferences towards what constitutes a good life. The authors propose a method to decompose the inequality difference into two parts: the vertical and reranking effects. The vertical effect arises from the correlation between income and non-income dimensions, and between income and preferences. The reranking effect arises from the fact that some persons occupy a different position in the EI distribution compared to the income distribution. The authors also propose a detailed decomposition method based on the Shapley value to decompose each of the two effects by non-income dimensions. The authors apply the decompositions using data for 27 countries, considering five non-income dimensions: unemployment, health, housing, crime and environment. The results show that inequality is much higher for EI that the reranking effect accounts for a large part of the inequality difference, and that health is the non-income dimension contributing most to both effects.

1 – 10 of over 17000