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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 (HDI) and…

850

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

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

Article
Publication date: 18 January 2013

Minh Quang Dao

The aim of this paper is to extend a theoretical model due to Ljungqvist and data from a sample of 19 developing economies to empirically test it.

1767

Abstract

Purpose

The aim of this paper is to extend a theoretical model due to Ljungqvist and data from a sample of 19 developing economies to empirically test it.

Design/methodology/approach

Data for all variables are from the 2005 Human Development Report and the 2006 World Development Report. The author applies the least‐squares estimation technique in a multivariate linear regression.

Findings

Based on data from the World Bank and the United Nations Development Programme, the paper uses a sample of 19 developing economies and finds that cross‐country variations in income/consumption inequality may be explained by inequality of investment in human capital as measured by inequalities in child health as well as inequality in education and by inequality in the distribution of land as measured by the land Gini index.

Practical implications

Assuming a population consisting of skilled laborers, unskilled laborers, educators/health care personnel, and farmers, the paper shows that starting from an initial distribution of assets and in the absence of a perfect capital market along with human capital exhibiting increasing returns it is possible to have persistent inequality in the distribution of income or consumption. Regression results also are consistent with the theoretical implication of the model as the extent of inequality in land distribution and in access to education as well as inequalities in child health do linearly influence income or consumption inequality as measured by the ratio of the share of income or consumption accounted for by the richest quintile to that of the poorest quintile. As a result, if governments in developing countries aim to reduce inequality, they need to implement programs designed to reduce inequalities in child health by allowing children from the poorest of the poor to get fully immunized, which in turn would lead to a reduction in infant and child mortality and in education by providing low‐income families with means so that their children have better access to education. Government land policies, on the other hand, that succeed in reducing inequality in land distribution in developing countries, may be beneficial in terms of lessening income/expenditure inequality. Finally, while the present model does not test for the impact that improving capital markets would have, it stands to reason that improving capital markets could also have an impact on decreasing inequality.

Originality/value

In this paper the author uses a model due to Ljungqvist to show that individuals are relatively wealthy because they either own a fixed input such as land or they are able to invest in human capital, which in turn allow them to earn sufficient rent or labor income to remain wealthy. On the other hand, poor people either do not own land or are not capable of investing in human capital, and, as a result, earn low incomes and remain poor. This joint causation of factor endowment or human capital investment and income helps explain income distribution. Using data from the United Nations Development Programme and the World Bank for a sample of 19 developing economies, it is found that cross‐country variations in income/consumption inequality may be explained by inequality of investment in human capital as measured by inequalities in child health as well as well as inequality in education and by inequality in the distribution of land as measured by the land Gini index. These results will help governments in developing countries identify areas that need to be improved upon in order to reduce income/consumption inequality.

Details

Journal of Economic Studies, vol. 40 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 17 October 2023

Anthony Smythe, Igor Martins and Martin Andersson

With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes…

1392

Abstract

Purpose

With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes. Recent research suggests that the decline in the frequency of “shrinking” episodes is more important for long-term development than higher growth rates. By using a framework centred around social capabilities, this study aims to investigate the effects of income inequality and poverty on economic shrinking frequency, as opposed to previous literature that has exclusively had a growth focus. The aim is to investigate how and why some societies might be more resilient to economic shrinking.

Design/methodology/approach

The research is a quantitative study, and the authors build a longitudinal data set including 23 developing countries throughout 42 years to test the paper’s purpose. This study uses country and period fixed-effects specifications as well as cross-sectional graphical representations to investigate the relationship between proxies of economic inclusivity and the frequency of shrinking episodes.

Findings

The authors demonstrate that while inclusive societies are more resilient to shrinking overall, it is changes in poverty levels, but not changes in income inequality, that appear to be correlated with economic shrinking frequency. Inequality, while still an important element to explain countries’ growth potential as an initial condition, does not seem to make the sample more resilient to shrinking. The authors conclude that the mechanisms in which poverty and inequality are correlated with the catch-up process must run through different channels. Ultimately, processes that explain growth may intersect but not always overlap with the ones that explain resilience to shrinking.

Originality/value

The need for inclusive growth in long-term development has been championed for decades, yet inclusion has seldom been explored from the shrinking perspective. Though poverty reduction is already an important mainstream political objective, this paper differentiates itself by providing an alternate viewpoint of why this is important. Income inequality could have more of an economic growth limiting effect, while poverty reduction could be required to build resilience to economic shrinking. Developing countries will need both growth and resilience to shrinking, to catch-up with higher-income economies, which policymakers might need to balance carefully.

Details

International Journal of Development Issues, vol. 23 no. 1
Type: Research Article
ISSN: 1446-8956

Keywords

Open Access
Article
Publication date: 28 November 2023

Georgia Watson, Cassie Moore, Fiona Aspinal, Andrew Hutchings, Rosalind Raine and Jessica Sheringham

Many countries have a renewed focus on health inequalities since COVID-19. In England, integrated care systems (ICSs), formed in 2022 to promote integration, are required to…

Abstract

Purpose

Many countries have a renewed focus on health inequalities since COVID-19. In England, integrated care systems (ICSs), formed in 2022 to promote integration, are required to reduce health inequalities. Integration is supported by population health management (PHM) which links data across health and care organisations to inform service delivery. It is not well-understood how PHM can help ICSs reduce health inequalities. This paper describes development of a programme theory to advance this understanding.

Design/methodology/approach

This study was conducted as a mixed-methods process evaluation in a local ICS using PHM. The study used Framework to analyse interviews with health and care professionals about a PHM tool, the COVID-19 vaccination uptake Dashboard. Quantitative data on staff Dashboard usage were analysed descriptively. To develop a wider programme theory, local findings were discussed with national PHM stakeholders.

Findings

ICS staff used PHM in heterogeneous ways to influence programme delivery and reduce inequalities in vaccine uptake. PHM data was most influential where it highlighted action was needed for “targetable” populations. PHM is more likely to influence decisions on reducing inequalities where data are trusted and valued, data platforms are underpinned by positive inter-organisational relationships and where the health inequality is a shared priority.

Originality/value

The COVID-19 pandemic accelerated a shift toward use of digital health platforms and integrated working across ICSs. This paper used an evaluation of integrated data to reduce inequalities in COVID-19 vaccine delivery to propose a novel programme theory for how integrated data can support ICS staff to tackle health inequalities.

Details

Journal of Integrated Care, vol. 31 no. 4
Type: Research Article
ISSN: 1476-9018

Keywords

Open Access
Article
Publication date: 2 November 2023

Oscar Claveria and Petar Sorić

The purpose of this paper is to investigate the adjustment of government redistributive policies in Scandinavian and Mediterranean countries following changes in income inequality…

1061

Abstract

Purpose

The purpose of this paper is to investigate the adjustment of government redistributive policies in Scandinavian and Mediterranean countries following changes in income inequality over the period 1980–2021.

Design/methodology/approach

The authors first modelled the time-varying dynamics between income inequality and redistribution and then used a non-linear framework to test for the existence of asymmetries and cointegration in their long-run relationship. The authors used two complementary measures of inequality – the share of total income accruing to top percentile income holders and the ratio of the share of total income accruing to top decile income holders divided by that accumulated by the bottom 50% – and computed redistribution as the difference between the two inequality indicators before and after taxes and transfers.

Findings

The authors found that the sign of the relationship between income inequality and redistribution is mostly positive and time-varying. Overall, the authors also found evidence that the impact of increases in inequality on redistributive measures is higher than that of decreases. Finally, the authors obtained a significant long-run relationship between both variables in all countries except Denmark and Spain. These results hold for both Scandinavian and Mediterranean countries.

Originality/value

To the best of the authors’ knowledge, this is the first paper to account for the potential existence of non-linearities and to examine the asymmetries in the adjustment of redistributive policies to increases in income inequality using alternative income inequality metrics.

Details

Applied Economic Analysis, vol. 32 no. 94
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 24 October 2023

Md. Saiful Islam and Abul Kalam Azad

Personal remittance and ready-made garments (RMG) export incomes have emerged as the largest source of foreign income for Bangladesh's economy. The study investigates their impact…

Abstract

Purpose

Personal remittance and ready-made garments (RMG) export incomes have emerged as the largest source of foreign income for Bangladesh's economy. The study investigates their impact on income inequality and gross domestic product (GDP) as a control variable, using time-series yearly data from 1983 to 2018.

Design/methodology/approach

It employs the Autoregressive Distributed Lag (ARDL) estimation and the Toda-Yamamoto (T-Y) causality approach. The ARDL estimation outcomes confirm a long-run association among the above variables and validate the autoregressive characteristic of the model.

Findings

Personal remittances positively contribute to reducing the income gap among the people of the society and declining income inequality. In contrast, RMG export income and economic growth contribute to further income inequality. The T-Y causality analysis follows the ARDL estimation outcomes and authenticates their robustness. It reveals a feedback relationship between remittance inflow and the Gini coefficient, unidirectional causalities from RMG export income to income inequality and economic growth to income inequality.

Research limitations/implications

The finding has important policy implications to limit the income gaps between low and high-income groups by channeling incremental income to the lower-income group people. The policymakers may facilitate further international migration to attract further remittances and may upgrade the minimum wage of the RMG workers.

Originality/value

The study is original. As far as the authors' knowledge goes, this is a maiden attempt to investigate the impact of personal remittances and RMG export income on income disparity in the case of Bangladesh.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 21 August 2023

Susanne Tafvelin and Britt-Inger Keisu

The purpose of this study was to develop a scale that can be used to assess inequality at work based on gender, age and ethnicity that is grounded in Acker’s (2006) inequality…

Abstract

Purpose

The purpose of this study was to develop a scale that can be used to assess inequality at work based on gender, age and ethnicity that is grounded in Acker’s (2006) inequality regimes.

Design/methodology/approach

The authors used three representative samples (total N = 1,806) of Swedish teachers, nurses and social workers to develop and validate the scale. The validation process included the assessment of content validity, confirmatory factor analysis for factorial validity, internal consistency and associations with theoretically warranted outcomes and related constructs to assess criterion-related validity and convergent validity.

Findings

The authors found evidence supporting the content, factorial, criterion-related and convergent validity of the InEquality in organisations Scale (InE-S). Furthermore, the scale demonstrated high internal consistency.

Originality/value

The newly developed scale InE-S may be used to further the understanding of how inequality at work influences employees. This study makes a contribution to the current literature by providing a scale that, for the first time, can test Acker’s hypotheses using quantitative methods to demonstrate the consequences of inequality at work.

Details

Gender in Management: An International Journal , vol. 39 no. 4
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 28 June 2023

Sidi Mohammed Chekouri

This study aims to present an empirical investigation on the effect of natural resource rent on income inequality in Algeria over the period 1980–2020.

Abstract

Purpose

This study aims to present an empirical investigation on the effect of natural resource rent on income inequality in Algeria over the period 1980–2020.

Design/methodology/approach

The analysis is carried out by using the novel developed method dynamic autoregressive distributed lag (ARDL) simulation technique alongside the Kernel-based regularized least squares.

Findings

The bounds test revealed a long-run relationship between natural resource rent and income inequality. Our estimation results suggest that natural resource rent, GDP per capita and government expenditures are all associated with lower income inequality in the short and long term. Moreover, the author found that better institutional quality is more likely to reduce income inequality in Algeria. This empirical finding is further validated by the counterfactual shocks from the dynamic ARDL simulation, which reveal a significant decrease in predicted income inequality following a positive change in resource rents and a gradual, significant increase in inequality after a negative change in resource rents.

Originality/value

The present study is the first to use the dynamic ARDL model to investigate the impact of positive and negative changes in natural resource rent on income inequality in Algeria.

Details

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

Keywords

Article
Publication date: 24 July 2023

Sudharshan Reddy Paramati and Thanh Pham Thien Nguyen

This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.

Abstract

Purpose

This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.

Design/methodology/approach

This study uses panel data set from 1995 to 2020 and employs panel autoregressive distributed lag (ARDL) method for the empirical investigation.

Findings

The empirical findings from the panel ARDL models suggest that all of the considered tourism indicators have significant negative impacts on income inequalities. The results remain consistent with alternative indicators and methods.

Social implications

The findings of this study will be critical for the policymakers to take effective measures to reduce the income inequality. Such measures could include promoting tourism in general, focusing on attracting international tourists or domestic tourists, and putting more weight on developing leisure or business tourism, which will boost the overall economic performance and alleviates inequalities in the society.

Originality/value

This is the first study to consider various forms of tourism indicators to see their impact on income inequality in the Asia–Pacific region, and offers important implications for the policy actions.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 43 no. 1
Type: Research Article
ISSN: 2040-7149

Keywords

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