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Article
Publication date: 23 January 2023

Juan Ignacio Martín-Legendre, Pablo Castellanos-García and José Manuel Sánchez-Santos

This paper aims to study, by means of an empirical approach, how monetary policy might affect the distribution of individual income.

Abstract

Purpose

This paper aims to study, by means of an empirical approach, how monetary policy might affect the distribution of individual income.

Design/methodology/approach

After describing the channels through which monetary policy could impinge on income distribution, the authors carry out a panel analysis of 62 countries that control their monetary policy for the period 1996–2015.

Findings

Using two possible proxy variables for monetary policy (the monetary aggregate M3 and the real interest rates), the results reveal a significant positive relationship between real interest rates and income inequality measured through the market Gini coefficient and polarization ratios. The findings suggest that central bankers should be more aware of the redistributive effects of monetary policy.

Research limitations/implications

It should be mentioned the major challenge of data limitation in the empirical investigation on the relationship between monetary policies and inequalities.

Practical implications

The empirical evidence presented in this paper supports the premise that central bankers should not ignore the unintended redistributive consequences of their actions. In this regard, it is worth noting that if, in addition to price stability, central banks are also responsible for financial stability; the rationale behind central bank independence needs to be reconsidered.

Originality/value

An outstanding feature of the paper is its sample size and the variety of countries included in the sample, which includes countries from all continents and with very different levels of economic development. Also, unlike papers based on forecasting modeling – e.g. Vector autoregression (VAR) or Structural vector autoregression (SVAR) models, the study follows an explanatory approach, including not only monetary variables, but also a series of regressors that may have a meaningful and significant impact on inequality, according to a wide literature.

Details

Journal of Economic Studies, vol. 50 no. 7
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 31 May 2022

Dipankar Das

To run a job guarantee public policy scheme, it is important to know the aspiration level or the reference point of labor, and accordingly, the labor hour and the wage sequence…

Abstract

Purpose

To run a job guarantee public policy scheme, it is important to know the aspiration level or the reference point of labor, and accordingly, the labor hour and the wage sequence are to be prepared. The existing job guarantee schemes consider the same wage rates for all types of jobs. As a result, it is to identify the reference point. The present work aims to propose a job guarantee scheme where different types of jobs have different wage rates. The paper explains the choice problem between labor and leisure at different wage rates and proposes complete computational tools to be incorporated into the job guarantee schemes. The paper also gives a mechanism to prepare the list of jobs and corresponding wage rates by maintaining a balance between labor and leisure, where productive activities measure labor hours and labor welfare measures leisure hours. Lastly, the paper provides the analytical tools to interpret the ex-post data of the job guarantee public policy schemes.

Design/methodology/approach

The paper has been written based on the Coordination Game and its Welfare Implications in the job guarantee public policy schemes.

Findings

The present paper gives an initial work to measure the choice between labor and leisure for the different wage rates practically. This will help in getting the equilibrium strategies, namely, the combination of the labor hour and the wage rate between the policymaker and the labor. This method will help to implement the job guarantee schemes. For example, to run successfully the Basic Income policy, the basic income calculation should give due care; otherwise, there will be a downward trend in the basic income and the welfare of labor will be reduced, because the labor would have to supply excess labor to meet the target income.

Originality/value

This paper derives theories and explains how the equilibrium in this coordination game can be achieved. The paper explains how the policy of the job guarantee schemes can be practiced practically. In the MGNREGA scheme, the public institution declares different categories of jobs with different wage rates. The categories have been classified with respect to the hours required to complete the job. Therefore, the public institution declares different lists or a sequence of pairs of labor hours and wage rates. Moreover, the list is stochastic, because the list can be changed by the inclusion of an offer from the market as well. The labor has to select from the list. The challenge on the part of the public institution is to prepare the list in such a way so that the inclusion of the market offers will not distort the equilibrium of the coordination game. An important method has been proposed here to analyze the ex-post data of job offers so that the preparation of the future sequence of the job offers can be prepared with due care. One objective of the policymaker here is to make a list of job offers in such a way so that the labor supply will be converging to a point and that will not deviate if the wage rate increases further. This objective will make a balance of the distribution of funds between the existing registered labor and the new entrants into the job guarantee schemes.

Details

Journal of Economic Studies, vol. 50 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 9 May 2023

Vanessa Rabelo Dutra, Silvia Amélia Mendonça Flores, Kelmara Mendes Vieira and Altacir Bunde

The purpose of this study is to examine if public policy satisfaction is related with perceived financial security. The public policy examined is an emergency income policy in…

Abstract

Purpose

The purpose of this study is to examine if public policy satisfaction is related with perceived financial security. The public policy examined is an emergency income policy in Brazil.

Design/methodology/approach

The authors used a questionnaire to interview a random sample of 235 single-parent women who received Emergency Aid (EA) resources in Brazil during the pandemic. The questionnaire included measures of financial security, financial anxiety, financial resilience and profile aspects. The authors applied a multiple regression approach to identify the determinants of financial security during the pandemic.

Findings

Our findings show that factors such as satisfaction with the emerging income policy and financial resilience are positively related to perceived financial security. Financial anxiety, financial fragility and job loss in the pandemic are negatively related with perceived financial security.

Research limitations/implications

While our results correspond to a random probabilistic sample of women residing in southern Brazil, they may not be generalizable to Brazil as a whole.

Practical implications

This study provides evidence of the financial situation in the pandemic for the lives of economically vulnerable women. The research encourages government and financial institutions to understand the unique challenges faced by vulnerable populations during the pandemic and analyzes the direct results of EA. The study contributes to the establishment of policies to support vulnerable populations, encouraging security and financial resilience.

Originality/value

This research is innovative in its analysis of women’s financial situations during the pandemic, taking into consideration both behavioral aspects and profiles. Our focus on a specific case of emergency income policy adds to the understanding of the relation of such policies on vulnerable populations.

Details

International Journal of Bank Marketing, vol. 41 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 25 March 2022

Constantinos Alexiou and Emmanouil Trachanas

Despite the existing conceptual analysis on the impact of trade unions on employees' welfare and the wider economy, the mediating effect of political party orientation (i.e.…

Abstract

Purpose

Despite the existing conceptual analysis on the impact of trade unions on employees' welfare and the wider economy, the mediating effect of political party orientation (i.e., right, centre and left) on income inequality remains under researched. In this paper, the authors empirically explore the relationship between the nature of political party orientation, trade unions and income inequality.

Design/methodology/approach

The authors use three different measures of income inequality and dummy variables that capture government party orientation with respect to economic policy for a panel of 17 OECD economies over the period 2000–2016. The authors employ a panel fixed effects approach and the Driscoll and Kraay's (1998) nonparametric covariance matrix estimator.

Findings

The empirical evidence indicates that strong unions and, to some extent, left party governance, are fundamental institutional elements to combat rising levels of income inequality whilst countries dominated by right-wing political parties appear to exacerbate income inequality. The results pertaining to the impact of centrist parties on income inequality are ambiguous suggesting that a potential fragmentation may exist in their political approach.

Originality/value

The evidence generated can have significant policy ramifications in alleviating rising levels of income inequality as well in relation to the declining unionization rates observed across advanced economies.

Details

Journal of Economic Studies, vol. 50 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 7 July 2023

Theodora Aba Kwegyeba Brown, Godfred A. Bokpin and Emmanuel Sarpong-Kumankoma

This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA).

Abstract

Purpose

This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA).

Design/methodology/approach

A panel data set of 36 SSA countries was analysed using generalised method of moments.

Findings

The results suggest that an increase in direct taxes relative to indirect taxes has a positive significant impact on income inequality. This is mostly due to the progressive nature of direct taxes as compared to indirect taxes.

Originality/value

This research contributes to the scant literature on how specific tax components affect income inequality, especially in developing countries.

Details

International Journal of Development Issues, vol. 22 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Abstract

Details

Mixed-Income Housing Development Planning Strategies and Frameworks in the Global South
Type: Book
ISBN: 978-1-83753-814-0

Open Access
Article
Publication date: 13 April 2023

Van Bon Nguyen

The study aims to use individuals using the internet and fixed broadband subscriptions as a proxy for digitalization to empirically assess the effects of Foreign Direct Investment…

1804

Abstract

Purpose

The study aims to use individuals using the internet and fixed broadband subscriptions as a proxy for digitalization to empirically assess the effects of Foreign Direct Investment (FDI), digitalization and their interaction on income inequality in developed and developing countries from 2002 to 2019.

Design/methodology/approach

The paper used the system general method of moments estimators for 30 developed and 35 developing countries.

Findings

FDI increases income inequality in developed countries but decreases it in developing countries, digitalization reduces income inequality in both groups and interaction term narrows income inequality in developed countries but widens it in developing countries.

Originality/value

The paper is the first to introduce digitalization into the FDI – income inequality relationship. Furthermore, it provides empirical evidence to show the difference in the role of digitalization in this relationship between developed and developing countries.

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 55
Type: Research Article
ISSN: 2218-0648

Keywords

Article
Publication date: 21 February 2024

Nicolas Aubert, Miguel Cordova and Gonzalo Hernandez

This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American…

Abstract

Purpose

This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American countries with deep social and economic inequalities.

Design/methodology/approach

This is a qualitative case study which conducted interviews with representatives of the French MNE and its subsidiaries in Peru and Mexico.

Findings

The employee stock purchase plans offered by the company to its employees support the achievement of the sustainable development goals (SDGs) 1, 8 and 10 in these countries.

Social implications

The authors argue that MNEs could become flagships in the SDG achievement in emerging economies.

Originality/value

By contributing to better workplace outcomes and enhanced corporate performance, ESO is in line with SDG 8. ESO also fulfills SDGs 1 and 10 by allowing employees to build up savings and wealth, whose lack is the main source of inequality and poverty. Reciprocity and binary economics theories explain these relationships.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 5 July 2023

Milla Salin, Mia Hakovirta, Anniina Kaittila and Johanna Raivio

This article analyzes the challenges Finnish single mothers experienced in their everyday lives during the COVID-19 pandemic. In studies on challenges to family life during…

Abstract

Purpose

This article analyzes the challenges Finnish single mothers experienced in their everyday lives during the COVID-19 pandemic. In studies on challenges to family life during COVID-19 lockdowns, single-parent families remain a largely understudied group.

Design/methodology/approach

The authors apply triple bind theory and ask how did Finnish single mothers manage the interplay between inadequate resources, inadequate employment, and inadequate policies during lockdown in spring 2020? These data come from an online survey including both qualitative and quantitative questions which was conducted between April and May 2020 to gather Finnish families' experiences during lockdown. This analysis is based on the qualitative part of the survey.

Findings

This study's results show that lockdown created new inadequacies while also enhancing some old inadequacies in the lives of Finnish single mothers. During lockdown, single mothers faced policy- and resource-disappearances; accordingly, they lost their ability to do paid work normally. Furthermore, these disappearances endangered the well-being of some single mothers and their families.

Originality/value

This article contributes to the wider understanding of everyday lives of single mothers and the challenges COVID-19 pandemic created. Moreover, this study provides knowledge on the applicability of the triple bind theory when studying the everyday lives of single mothers.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 16 May 2023

Rizky Yudaruddin

This study aims to examine the joint impact of the COVID-19 pandemic and the government response on the performance of Islamic and conventional banks.

Abstract

Purpose

This study aims to examine the joint impact of the COVID-19 pandemic and the government response on the performance of Islamic and conventional banks.

Design/methodology/approach

Data were collected from a sample of 94 conventional and 14 Islamic banks in Indonesia from March 2020 to September 2021. The system generalized methods of moments estimation is used to analyze the data.

Findings

This study finds robust results regarding the negative impact of the COVID-19 pandemic and the positive effects of government responses to COVID-19 pandemic on bank performance in Indonesian banking. Moreover, in line with the rise in confirmed COVID-19 cases, a higher government policy responses index improves bank performance, both in conventional and Islamic banks.

Practical implications

This paper highlights the importance of the government policy responses index to absorb the negative impact of the COVID-19 outbreak on banking performance.

Originality/value

This paper provides novel insights into the joint impact of the COVID-19 pandemic and government responses to COVID-19 pandemic on bank performance between conventional and Islamic banks.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 6
Type: Research Article
ISSN: 1759-0817

Keywords

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