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Open Access
Article
Publication date: 15 February 2024

Davi Bhering

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country…

Abstract

Purpose

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country. These variations in development can potentially render survey data inaccurate since the significance of capital income varies across the states. Besides, previous studies incorporating tax and national accounts data globally have mainly focused on measuring the income distribution at the country-level. This approach can limit the understanding of inequality, especially when considering large countries such as Brazil.

Design/methodology/approach

The methodology used to construct these estimates follows the guidelines of the Distributional National Accounts, whose core goal is to provide income distribution measures consistent with macroeconomic aggregates and harmonized across countries and time. The procedure has three main steps: first, it corrects the survey’s underrepresentation of top incomes using tax data. Then, it accounts for national income items not included in the survey or tax data, such as imputed rents and undistributed profits. Finally, it ensures that all components match the national income.

Findings

Compared to survey-based estimations, the results reveal a new angle on the state-level inequality. This study indicates that Amazonas, Rio de Janeiro and São Paulo have a more concentrated income distribution. The top 1\% of earners in these states receives around 28\% of total pre-tax income, while the top 10\% receive nearly 60\%. On the other end, Amapá (AP), Acre (AC), Rondônia (RO) and Santa Catarina (SC) are the states where the income distribution is less concentrated. There were no significant changes in the income distribution across the states during the period analyzed.

Originality/value

This study combines survey, tax and national accounts data to construct new estimates of Brazil’s state-level income distribution from 2006 to 2019. Previous results only considered income captured in surveys, which usually misses a significant part of capital incomes. This limitation may bias comparisons as capital income has different importance across the states. The new estimates represent the income of top groups more accurately, account for the entire national income and enable to compare regional inequality levels consistently with other countries.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 10 May 2024

Haoxu Zhang, Elena Millan, Kevin Money and Pei Guo

This research examines the impact of the National Rural E-commerce Comprehensive Demonstration Project (NRECDP) on poverty reduction and income growth in rural China.

Abstract

Purpose

This research examines the impact of the National Rural E-commerce Comprehensive Demonstration Project (NRECDP) on poverty reduction and income growth in rural China.

Design/methodology/approach

The study develops a theoretical framework, which considers the role of geographical, technological, institutional and cultural factors for the e-commerce poverty alleviation (e-CPA) model. Empirically, this study applies the difference-in-differences (DID) model and the event study approach to evaluate the effectiveness of NRECDP on the basis of large-scale county-level and household-level panel data spanning 2010 to 2020.

Findings

The study found that the NRECDP, as a government-led, information and communication technology (ICT)-enabled, market-based program, has led to a significant increase in per capita output of primary industry employees, as well as in the disposable income of rural residents, especially those in national-level poverty-stricken (NP) counties. The interventions of the NRECDP achieved these positive outcomes through transportation and Internet infrastructure improvement, ICT adoption and human capital accumulation in impoverished towns and villages in remote rural areas. These effects are larger in the eastern region of China, followed by the central region, whereas the weakest effects were found in the western region. However, we found little evidence of the NRECDP increasing household developmental expenditure.

Research limitations/implications

The study findings have important practical and policy implications for rural e-commerce development and self-sustained poverty alleviation solutions. The research revealed the significance of government NRECDP interventions for increasing rural income, reducing living costs, and empowering the rural population in its multiple social roles, namely, as consumers, producers, employees and microentrepreneurs. The local cultural context may also play a role in ICT adoption and entrepreneurship cultivation with a downstream effect on the effectiveness of e-CPA practices. Policymakers would need to ensure a supportive entrepreneur-friendly environment for rural e-commerce development and continue implementing progressive policies for poverty alleviation.

Originality/value

This study explores poverty alleviation issues in China by developing for the first time a multi-faceted framework that is subsequently tested by both county-level and household-level large-scale observations. Also, it is the first study to provide nationwide empirical evidence on the effectiveness of e-CPA in narrowing down the spatial and digital divides in China. In addition to the impact of geography, technology and governmental support, this study also sheds light on the role of culture in the adoption and diffusion of digital technologies and as a source of local entrepreneurial opportunities.

Details

Journal of Strategy and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 2 January 2024

Yuanhong Hu, Feifei Huang, Pengling Liu and Shuyu Zhang

As China’s industrial structure continues to upgrade and optimize, the consumption capacity of rural residents gradually improves and the role of consumption in economic growth is…

Abstract

Purpose

As China’s industrial structure continues to upgrade and optimize, the consumption capacity of rural residents gradually improves and the role of consumption in economic growth is increasingly prominent. Against the background of weak external demand, the untapped potential of rural consumption has become a key force in expanding domestic demand. As one of the important means that the government has long relied on, fiscal support for agriculture has played a crucial role in activating the rural consumer market. This manuscript aims to explore the impact of local fiscal support for agricultural expenditure (FSAE) on rural consumption in China, as well as to examine the mediating role of the level of rural financial development.

Design/methodology/approach

In this manuscript, the authors use the provincial panel data of 31 provinces in China from 2000 to 2020. The data of all variables mainly come from China Statistical Yearbook and China Rural Statistical Yearbook. According to the variable selection above, 651 sample data of 31 provinces and cities across China from 2000 to 2020 are organized. In terms of methodology, multiple fixed-effects panel model is applied to regression.

Findings

Firstly, FSAE varies significantly, while rural consumption slowly but steadily rises, with a relatively stable consumption structure. Secondly, FSAE has a significant positive effect on rural consumption. Thirdly, mediation testing indicates that mechanisms such as income, uncertainty and financial development have significant positive mediating effects on rural consumption. Thirdly, there is evident regional heterogeneity in FSAE’s impact on rural consumption. The Western regions, under government fiscal support, show a more significant effect on the elevation of rural consumption levels, while the role of FSAE in optimizing the consumption structure of rural residents in eastern and central regions is more pronounced.

Originality/value

Firstly, a systematic examination of local FSAE and rural consumption has been conducted, enriching relevant theories. Secondly, utilizing econometric empirical methods to research the relationship between local FSAE and rural consumption provides an exploratory extension to empirical studies on rural consumption in China. This offers empirical evidence for local fiscal support in agricultural development and the promotion of rural consumption.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 16 May 2024

Lucia Errico, Andrea Mosca and Sandro Rondinella

This study explores whether ethnic minorities exhibit varying levels of income inequality compared to the host population.

Abstract

Purpose

This study explores whether ethnic minorities exhibit varying levels of income inequality compared to the host population.

Design/methodology/approach

The research leverages a unique immigration event in Italy, specifically the settlement of multiple Albanian groups in southern Italy during the 16th century. This historical occurrence enables an investigation into the role of cultural traits in income inequality, as these groups are situated in the same geographical region and often share borders.

Findings

The results, which remain consistent after undergoing various robustness checks, indicate that Albanian villages, while still preserving their identity and tradition, tend to experience an approximately 2% lower level of income concentration compared to similar Italian municipalities.

Originality/value

Our findings aim to provide supporting evidence for future policy considerations regarding the long-term impact of immigration on income inequality.

Details

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

Keywords

Article
Publication date: 2 January 2024

Nazia Begum, Muhammad Tariq, Noor Jehan and Farah Khan

The measurement of women's economic welfare and exploring its underlying factors have been undervalued in the context of Khyber Pakhtunkhwa, Pakistan. This study addressed this…

Abstract

Purpose

The measurement of women's economic welfare and exploring its underlying factors have been undervalued in the context of Khyber Pakhtunkhwa, Pakistan. This study addressed this gap by focusing on assessing women's subjective economic welfare and its socioeconomic and cultural determinants in the education and health sectors within Mardan, Northern Pakistan.

Design/methodology/approach

The study used stratified random sampling techniques for the selection of sample respondents and collected data through a well-structured questionnaire. To measure women’s economic welfare, the study utilizes Lorenz curves, the Gini index, the Sen Social Welfare function and an individual's gross monthly income. Furthermore, the ordinary least squares method was utilized to analyze the determinants of economic welfare.

Findings

The findings show greater income inequality and a lower welfare level for women in the education sector compared to the health sector. Likewise, the study identifies several key determinants, such as age, educational qualification, job experience, respect for working women, outside and work-place problems and the suffering of family members of working women for their economic well-being.

Originality/value

This study makes valuable contributions to the literature by focusing on the cultural perspective of Pakhtun women in Mardan and providing a context-specific understanding of subjective economic welfare. Additionally, the authors collected first-hand data, which gave an original outlook on working women's current economic welfare level. Furthermore, this study undertakes a comparative analysis of working women's welfare in the health and education sectors. This comparison offers a more accurate portrayal of the challenges and opportunities specific to these occupations.

Peer review

The peer-review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0246

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 29 April 2024

Giovanni Gallo, Silvia Granato and Michele Raitano

The Covid-19 pandemic appears to have engendered heterogeneous effects on individuals’ labour market prospects. This paper focuses on two possible sources of a heterogeneous…

Abstract

Purpose

The Covid-19 pandemic appears to have engendered heterogeneous effects on individuals’ labour market prospects. This paper focuses on two possible sources of a heterogeneous exposition to labour market risks associated with the pandemic outbreak: the routine task content of the job and the teleworkability. To evaluate whether these dimensions played a crucial role in amplifying employment and wage gaps among workers, we focus on the case of Italy, the first EU country hit by Covid-19.

Design/methodology/approach

Investigating the actual effect of the pandemic on workers employed in jobs with a different degree of teleworkability and routinization, using real microdata, is currently unfeasible. This is because longitudinal datasets collecting annual earnings and the detailed information about occupations needed to capture a job’s routine task content and teleworkability are not presently available. To simulate changes in the wage distribution for the year 2020, we have employed a static microsimulation model. This model is built on data from the Statistics on Income and Living Conditions (IT-SILC) survey, which has been enriched with administrative data and aligned with monthly observed labour market dynamics by industries and regions.

Findings

We measure the degree of job teleworkability and routinization with the teleworkability index (TWA) built by Sostero et al. (2020) and the routine-task-intensity index (RTI) developed by Cirillo et al. (2021), respectively. We find that RTI and TWA are negatively and positively associated with wages, respectively, and they are correlated with higher (respectively lower) risks of a large labour income drop due to the pandemic. Our evidence suggests that labour market risks related to the pandemic – and the associated new types of earnings inequality that may derive – are shaped by various factors (including TWA and RTI) instead of by a single dimension. However, differences in income drop risks for workers in jobs with varying degrees of teleworkability and routinization largely reduce when income support measures are considered, thus suggesting that the redistributive effect of the emergency measures implemented by the Italian government was rather effective.

Originality/value

No studies have so far investigated the effect of the pandemic on workers employed in jobs with a different degree of routinization and teleworkability in Italy. We thus investigate whether income drop risks in Italy in 2020 – before and after income support measures – differed among workers whose jobs are characterized by a different degree of RTI and TWA.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 20 November 2023

Zahra Salah Eldin, Mohamed Elsheemy and Raghda Ali Abdelrahman

Many countries around the world are facing great challenges from their ageing population with shrinking workforce, this will put more pressure on their financial system and will…

Abstract

Purpose

Many countries around the world are facing great challenges from their ageing population with shrinking workforce, this will put more pressure on their financial system and will increase the public spending on care costs provided to older people. Egypt is in the phase of establishing a new law for older people care's rights, a law that will organise how older people in need for care would benefit from access to government financial support and how will families support their older relatives financially and how the care costs will be shared between the older people, their families and the government.

Design/methodology/approach

The paper examines the suitability two cost-sharing methods and applying them to assess the effect on the individuals and families' income strain.

Findings

The preferred approach can be used for sharing costs as it applies a gradual funding withdrawal by the government and provide more fairness and flexibility for application in different regions. Besides, the parameters of this approach can be used by policy makers to control the levels of funding.

Originality/value

The paper will be the first to discuss the intergenerational fairness from a financial perspective in Egypt to avoid forcing older people into poverty or resorting to poverty trade-off.

Details

Journal of Humanities and Applied Social Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2632-279X

Keywords

Open Access
Article
Publication date: 29 February 2024

Leandro Pinheiro Vieira and Rafael Mesquita Pereira

This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.

Abstract

Purpose

This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.

Design/methodology/approach

Using data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.

Findings

Overall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.

Research limitations/implications

This study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.

Originality/value

The relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 1 April 2024

Richard Nkhoma, Vincent Dodoma Mwale and Tiyamike Ngonda

This study aims to examine the impact of socioeconomic factors on electricity usage and assess the feasibility of implementing a mini-grid system in Kasangazi, Malawi. The primary…

Abstract

Purpose

This study aims to examine the impact of socioeconomic factors on electricity usage and assess the feasibility of implementing a mini-grid system in Kasangazi, Malawi. The primary aim is to understand the community’s current and potential utilisation of electrical equipment.

Design/methodology/approach

A mixed-methods approach was used to collect quantitative and qualitative data. Information was gathered through structured questionnaires, and energy audits were conducted among 87 randomly selected households from 28 Kasangazi communities. Data analysis relied on descriptive statistics using IBM SPSS version 28.

Findings

The study indicates that every household in Kasangazi uses non-renewable energy sources: 60 households use disposable batteries for lighting, 20 for radios and all use firewood, freely sourced from local forests, for cooking and heating water. The study shows that firewood is the community’s preferred energy source, illustrating the challenges faced in the fight against deforestation. Most household income comes from farming, with smaller contributions from businesses, employment and family remittances. Access to higher education is scarce, with only one out of 349 family members receiving tertiary education. Despite the constraints of low education levels and income, there is a demand for larger electrical appliances such as stoves and refrigerators. This underscores the need for mini-grid solutions, even in less technologically advanced, agriculture-dependent communities.

Originality/value

This study underscores that in Sub-Saharan Africa, factors like household size, income and education levels do not significantly influence the electricity demand but should be taken as part of the fundamental human rights. Rural populations express a desire for electricity due to the convenience it offers, particularly for appliances like refrigerators and stoves. Mini-grids emerge as a viable alternative in regions where grid electricity provision is challenging. It is concluded from this paper that the issue of using renewable energy should not only be taken for environmental preservation but also to promote energy access, augmenting efforts in supplying electricity to the remotest parts of the country.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 21 November 2023

Hafirda Akma Musaddad, Selamah Maamor and Zairy Zainol

The purpose of this study paper is to highlight certain related barriers and issues of housing affordability and examine the factors that influence housing affordability in…

Abstract

Purpose

The purpose of this study paper is to highlight certain related barriers and issues of housing affordability and examine the factors that influence housing affordability in Malaysia.

Design/methodology/approach

This study used panel data including several variables, namely, household expense, population, home financing, interest rate, inflation rate (IF) and rental rate (RR). The regression models of panel data, namely, the ordinary least square model, the fixed effects model and the random effects model, were evaluated for their suitability.

Findings

The findings revealed that RR and IF have a positive and significant impact towards housing affordability. The results provide strong evidence that RR as alternative in determining the home affordability as it helped in reducing the cost and the financing duration period of houses while at the same time increasing the level of capability of homeownership. Meanwhile, the level of IF has positive and significant impact towards housing affordability because it will cause a drop or increase in the purchasing power of households, as well as a decline or increase in the capability to own a house.

Research limitations/implications

The most significant aspects to consider when analysing housing affordability in Malaysia are demand and supply. However, this study focuses on only five variables and only covers Malaysia. As a result, future researchers should analyse the study’s location, such as by region or district, and include additional variables from both the demand and supply sides. Homeownership of affordability requires a broader and more realistic definition in the current context of a more disruptive environment where technology such as fintech, blockchain and the internet of things acts as enablers for not only promoting homeownership but also ensuring homeownership sustainability. As a result, democratising Islamic home financing appears to be a viable option that requires rethinking, and further research is recommended.

Practical implications

The study proposes an end-to-end solution to promote homeownership levels by considering the level of RR as significant variables among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies in influencing affordability in Malaysia.

Originality/value

This paper discusses the indicators of housing affordability index over the 21-year period of 2000–2020, covering all states in Malaysia. The comparison of affordability level can be seen through all states and by regions. Besides that, the findings revealed that RR and IF have a positive and significant impact towards housing affordability. RR is considered an essential variable in promoting homeownership in Malaysia and warrants further investigation towards policy implication. This paper also provides contribution on data on RR by states in Malaysia that can be used by policymakers to some extent.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

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