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Article
Publication date: 29 August 2024

Vanessa Ratten

An increased interest in inequality and entrepreneurship has led to little consensus on how to define inequality from different perspectives based on an emerging economy point of…

Abstract

Purpose

An increased interest in inequality and entrepreneurship has led to little consensus on how to define inequality from different perspectives based on an emerging economy point of view. This article aims to discuss how the precise nature of inequality differs centered on how it is developing in emerging economies.

Design/methodology/approach

A review of the current literature on inequality, entrepreneurship and emerging economies was conducted to focus on understanding the main factors. This resulted in the identification of six main types of inequality in entrepreneurship (social, digital, economic, cultural, geographic and environmental) and offers specific suggestions for future research.

Findings

Inequality in emerging economies can be differentiated based on type and level of entrepreneurial development as well as integrated into a conceptual framework that integrates different ways to measure the concept.

Originality/value

This paper focuses on different types of inequality in entrepreneurship from an emerging economy point of view that offers a unique way to understand country differences. In addition, theoretical and methodological directions for future research are outlined, which consolidates current research and extending research on inequality, entrepreneurship and emerging economies.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Open Access
Article
Publication date: 17 September 2024

Haydory Akbar Ahmed and Hedieh Shadmani

In this research, we explore the dynamics among measures of income inequality in the USA, male and female unemployment rates, and growth in government transfer using time series…

Abstract

Purpose

In this research, we explore the dynamics among measures of income inequality in the USA, male and female unemployment rates, and growth in government transfer using time series data.

Design/methodology/approach

This research adopts a macro-econometric approach to estimate a structural VAR model using time series data.

Findings

Our structural impulse responses found that growth in government transfer increases unemployment rates for both males and females. Female income inequality declines with increased government transfer. When the female income ratio rises, we observe that government transfer outlays fall over the forecast horizon. Variance decomposition finds that growth in government transfers is impacted by the male unemployment rate relatively more than the female unemployment rate. This research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.

Practical implications

This research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.

Originality/value

This research investigates the dynamics among income inequality, government transfer, and unemployment rates. There is a dearth of research articles that adopt a macro-econometric in this area.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 10 September 2024

Tian Liu and Meng Shen

Redistributive policies aim to reduce income disparities and improve social equity. This study investigates whether redistributive effects that successfully diminish objective…

Abstract

Purpose

Redistributive policies aim to reduce income disparities and improve social equity. This study investigates whether redistributive effects that successfully diminish objective income inequality also effectively alter people’s perceptions of inequality.

Design/methodology/approach

Utilizing data from the 2018 China Household Income Survey (CHIP), comprising 56,167 individuals, this study applies ordered probability regression (Oprobit) and ordinary least squares (OLS) for analysis. To address potential biases in estimates, we employed the generalized propensity score matching (GPSM) method to estimate the treatment effect of transfer income on perceptions of inequality.

Findings

The results indicate that while China’s redistribution policies effectively reduce income disparities, they do not improve perceptions of inequality. Individuals exhibit biased attitudes toward redistributive policies. Specifically, perceptions of inequality are insensitive to the overall redistributive effect; the relationship is negative among the poor but positive among the rich. This contradictory pattern may be attributed to perceived income losses among the rich and gains among the poor.

Social implications

The findings have important implications for policy development. Redistribution policies should not only aim to mitigate income disparities but also address and improve people’s perceptions of inequality.

Originality/value

Existing literature has largely overlooked the impact of redistribution on perceived income inequality. This study represents an early effort to explore whether redistributive policies that reduce income inequality also influence people’s perceptions of inequality.

Details

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

Keywords

Article
Publication date: 12 August 2024

Novica Supic, Kosta Josifidis and Sladjana Bodor

The aim of this paper is to shed more light on the foreign direct investment (FDI) - income inequality nexus in the post-communist EU countries. Special attention is paid to the…

Abstract

Purpose

The aim of this paper is to shed more light on the foreign direct investment (FDI) - income inequality nexus in the post-communist EU countries. Special attention is paid to the emergence of a new meritocratic elite related to foreign capital that tends to replace the old elite inherited from the transition period at the top end of the income distribution.

Design/methodology/approach

The macroeconomic model of the relationship between income inequality and FDI is estimated by using the generalized method of moments (GMM) technique. The sample includes 10 post-communist EU member states during the period 1993 to 2020.

Findings

The results suggest that the concentration of the highest level of human capital in foreign-owned enterprises, in the institutional environment under which foreign-owned enterprises are less numerous and pay a higher wage than domestic ones, contributes to the change of the effect of FDI and human capital on income distribution from an initial decrease to a later increase in income inequality.

Originality/value

This paper adds to the existing literature by exploring the distributive impacts of sectoral reallocation of FDI inflows from manufacturing to service sectors from the perspective of heterodox economics. It specifically examines how this shift has facilitated the emergence of a new meritocratic elite associated with foreign capital, which in turn diminishes the overall anti-inequality effect of FDI in the post-communist new EU countries.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 23 August 2024

João Jungo, Mara Madaleno and Anabela Botelho

Evidence shows that African countries are confronted with high levels of income inequality. Therefore, it is relevant to approach and analyze the factors contributing to these…

Abstract

Purpose

Evidence shows that African countries are confronted with high levels of income inequality. Therefore, it is relevant to approach and analyze the factors contributing to these severe inequality cases. This paper addresses the issue by focusing on the role of financial regulation and military spending.

Design/methodology/approach

We used a sample of 30 African countries and a recent period (2009–2020), employing various instrumental variable estimation techniques to control for endogeneity.

Findings

The results confirm that economic growth aggravates income inequality due to high corruption and political instability. Results confirm that the increase in military spending increases inequality and that financial regulation weakens financial inclusion and also increases income inequality.

Research limitations/implications

The study shows the need for greater control of corruption and the promotion of political stability so that economic growth and financial inclusion can effectively reduce income inequality, as well as the need for a better balance in the drafting of financial regulations and the preparation of military expenditure to safeguard other policy objectives.

Originality/value

The present study contributes to scarce financial, economic, and social literature considering the role of financial regulation and military spending in the persistence of income inequality in African countries. Previous studies disregarded this fact.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0287

Details

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

Keywords

Article
Publication date: 23 August 2024

Olumide Olusegun Olaoye, Mamdouh Abdulaziz Saleh Al-Faryan and Mosab I. Tabash

The objective of the research is threefold. First, the study examines the fiscal policy – income inequality nexus in SA. Second, the study addressed the potential asymmetric…

Abstract

Purpose

The objective of the research is threefold. First, the study examines the fiscal policy – income inequality nexus in SA. Second, the study addressed the potential asymmetric effects in fiscal policy – income inequality nexus in SA (i.e. we assessed the effects of fiscal policy on income inequality at different quantiles of the income inequality) using secondary data from 1980–2020. Third, the study also identifies the optimal fiscal policy instrument that achieve the greatest distributional objectives.

Design/methodology/approach

The study adopts the traditional ordinary least square (OLS) and the innovative Quantile estimation techniques.

Findings

The study found that fiscal policy marginally reduces the income inequality at the lower quantiles (t: 0.05). Specifically, the results show that government spending on health and education reduces income inequality at the lower quantiles (t: 0.05; t: 0.25), albeit exerts a statistically weak impact. On the other hand, the results show that at the upper quantiles, fiscal policy has no statistically significant impact on income inequality. However, we do not find either direct or indirect tax to have any impact on income inequality at any conventional level of significance. This suggests that government spending on health and education have the greater potential to reduce income inequality in South Africa. The research and policy implications are discussed.

Originality/value

The study addressed the asymmetric phenomenon in income inequality-fiscal policy nexus in South Africa.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0956

Details

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

Keywords

Article
Publication date: 26 June 2024

Oliver N. Butty, Mehdi Seraj and Hüseyin Özdeşer

This study aims to examine whether energy poverty impacts gender inequality and CO2 emissions in African countries with the biggest economies by gross domestic product (GDP) per…

Abstract

Purpose

This study aims to examine whether energy poverty impacts gender inequality and CO2 emissions in African countries with the biggest economies by gross domestic product (GDP) per capita from 1996 to 2020. Additionally, this study examines the existence of the gender Kuznets curve (GKC) and the environmental Kuznets curve (EKC) theories. Furthermore, it evaluates the connection between economic development and carbon emissions, on the one hand, and economic development and gender inequality on the other.

Design/methodology/approach

This study uses the augmented Dickey–Fuller and Phillip–Perron unit root tests to determine the degree of integration between the variables. It also uses the Pedroni and Fisher–Combine Johansen cointegration tests to assess a long-run relationship between the variables. The authors adopted the pooled mean group (PMG)-autoregressive distributed lag model and used the E-Views 12 software to run the analysis.

Findings

The empirical analysis approves the long-run correlation among the variables used in this study. Increased energy poverty and GDP increase CO2 emissions, whereas income square hurts CO2 emissions. These results are consistent with the EKC hypothesis, which proposes a non-linear relationship between CO2 emissions and economic growth in the studied areas (similar to an inverted U shape). Long-term foreign direct investment (FDI) has a negative correlation with CO2 emissions. On the contrary, energy poverty, GDPsq and FDI find a positive relationship with gender inequality, whereas GDP finds a negative association with gender inequality. The negative relationship between GDPsq and gender inequality establishes a “U”-shaped connection between income and gender inequality. Thus, it supports the hypothesis of the GKC. Therefore, this study proposes that decreasing energy poverty is vital for promoting a clean environment and mitigating gender inequality.

Originality/value

This study supports the hypothesis of the GKC. Therefore, this study proposes that decreasing energy poverty is vital for promoting a clean environment and mitigating gender inequality.

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: 23 July 2024

Dereje Fedasa Hordofa

The purpose of this study is to empirically examine the impact of natural resource rents on income inequality in Ethiopia from 1981 to 2022 and investigate whether investments in…

Abstract

Purpose

The purpose of this study is to empirically examine the impact of natural resource rents on income inequality in Ethiopia from 1981 to 2022 and investigate whether investments in manufacturing moderate this relationship.

Design/methodology/approach

Dynamic autoregressive distributed lag simulation and Kernel-based regularized least squares (KRLS) models are used to analyses short- and long-run relationships, as well as the potential moderating role of manufacturing.

Findings

The bounds test indicates natural resource rents have a long-run positive effect on inequality but a short-run negative impact. The KRLS model finds manufacturing conditions for this linkage in the short run. In the long run, economic growth decreases inequality following an inverted Kuznets pattern, while government expenditures reduce disparities when directed at priority social services.

Research limitations/implications

The findings provide mixed support for theories while highlighting nuances not fully captured without local analyses. Strategic sectoral investments may help optimize outcomes from resource dependence.

Practical implications

The results imply Ethiopia should prudently govern resources, productively invest revenues and prioritize social spending to equitably manage industrialization and uphold stability.

Social implications

Reducing disparities through inclusive development aligned with empirical evidence could help Ethiopia sustain peace amid transformation and realize its goals of shared prosperity.

Originality/value

This study applies innovative econometrics to provide novel insights into Ethiopia's experience, resolving inconsistencies in the literature on relationships between key determinants and inequality.

Details

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

Keywords

Article
Publication date: 9 July 2024

Ummaha Hazra, Asad Karim Khan Priyo and Jamil Jahangir Sheikh

Bangladesh recently experienced frequent demonstrations by drivers of ridesharing applications. Since the drivers are not excluded from the technology environment, rather they are…

Abstract

Purpose

Bangladesh recently experienced frequent demonstrations by drivers of ridesharing applications. Since the drivers are not excluded from the technology environment, rather they are a part of the digital ecosystem, these protests may point toward the existence of unequal interactional outcomes for different stakeholders afforded by the digital system within the country’s social and cultural contexts. This research is an attempt to unveil the reasons behind value inequality experienced by drivers of ridesharing applications in Bangladesh and understand how power asymmetries influence adverse digital incorporation that can result in the emergence of resistance.

Design/methodology/approach

We obtain the data by conducting interviews with 91 drivers of ridesharing platforms in Dhaka, Bangladesh and analyze our data using thematic analysis. We propose an integrated framework unifying adverse digital incorporation (ADI) with the “powercube” model to illuminate our inquiry.

Findings

We find the existence of all three drivers to ADI – ignorance/deceit, direct compulsion and exclusion – exclusion being the most prevalent – that are experienced by the drivers of ridesharing applications in Bangladesh. We also find support for the four causes behind value inequality – design inequality, resource inequality, institutional inequality and relational inequality with the respondents placing the highest emphasis on relational inequality. There are visible, hidden and invisible forms of power involved in how the drivers are incorporated into the ridesharing platforms. The forms of power in the platform environment are exercised primarily in closed spaces and the invited spaces for the drivers are very few. The drivers in response to the closed spaces of power create their own space (claimed space) through the help of social media and other messaging apps. We also find that the power over the drivers is exercised at global, national and local levels.

Practical implications

Our research identifies norms specific to the social and cultural contexts of Bangladesh and can help decision-makers to make more informed choices during the formulation of future digital platform guidelines. Based on the research findings, the paper also makes short-term and long-term policy recommendations.

Social implications

This research has implications for creating a decent work environment for ridesharing drivers which broadly falls under the Sustainable Development Goal 8 (SDG 8).

Originality/value

To the best of the authors’ knowledge, this is the first paper that integrates the ADI model with the “powercube” framework to reveal that the drivers working on the ridesharing platforms in Bangladesh are adversely incorporated into the digital system where value inequalities are operating within the power dimensions.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 12 July 2024

Ricardo Barradas

This paper aims to contribute to the current debate between the mainstream and the non-mainstream literature on the effect of the growth of finance on the level of income…

Abstract

Purpose

This paper aims to contribute to the current debate between the mainstream and the non-mainstream literature on the effect of the growth of finance on the level of income inequality, for which the empirical evidence has also been providing mixed results.

Design/methodology/approach

We estimate a linear model and a non-linear model by employing a panel autoregressive distributed lag approach and relying on the dynamic fixed-effects estimator because of the existence of variables that are stationary in levels and stationary in the first differences.

Findings

Our findings confirm that finance, economic growth, educational attainment and degree of trade openness have a positive long-term effect on the level of income inequality in the European Union countries, whilst government spending has a negative impact in the short term.

Research limitations/implications

Our findings imply that policy makers should rethink the functioning of the financial system in order to restore a supportive relationship between finance and income inequality and adopt public policies that are more in favour of the poor in order to constrain the growth of income inequality in the European Union countries.

Originality/value

To the best of our knowledge, this is the first paper that, simultaneously, focuses on the European Union countries, assesses the nexus between finance and income inequality, uses three different variables as proxies for the level of income inequality (the Gini coefficient, the top 1% income share and the top 10% income share), measures the variables that are proxies for the level of income inequality in terms of pre-tax and pre-transfer values and as post-tax and post-transfer values, takes into account four different variables as proxies for the role of finance (credit, credit-to-deposit ratio, liquid liabilities and stock market capitalisation) and identifies the long-term and short-term determinants of income inequality.

Details

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

Keywords

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