Disparity In Income Distribution Research Articles

The motivating and mobilizing effects of inequality on civil conflict: Focusing on trade-induced labor market shocks

This article has two aims: (1) to identify the causal effect of income inequality on civil conflict and (2) to find the mechanism in which disadvantaged individuals can mobilize collective violence. Applying the Heckscher-Ohlin and Stopler-Samuelson theorems, this study hypothesizes that workers in land-rich countries – those who face contracted demand in the labor market and consequently a larger income disparity – will have a lower opportunity cost to engage in conflict as trade expands. Exploiting exogenous spatial variation in inequality due to the country’s factor endowment, together with time variation in tariffs arising from the economic liberalization, the work of this research documents a statistically significant and economically meaningful causal effect of inequality on civil conflict. Secondly, to identify the mobilizing effect of inequality, I test whether higher disparity in income distribution within an ethnic group breeds more rebellions initiated by the group. Esteban and Ray’s model claims that an increase in income inequality within an ethnic group makes collective violence more likely, because the poor within the group provide conflict labor, and the rich within the group provide resources for violence. By merging international census data that cover 115 million individuals from 221 ethnic groups with the groups’ conflict records, the analysis empirically identifies that when holding total ethnic income constant, within-group inequality that is proxied by the unemployment rate is strongly correlated with the group’s propensity to initiate armed conflicts. Shedding new light on the prevailing scholarly discord that exclusively chooses either one of class and ethnic cleavages as sources of intrastate violence, the findings of this study imply that if trade-induced labor market shocks increase within-group inequality, it motivates workers to participate in rebellions by lowering their opportunity cost of fighting and mobilizes ethnic collective violence by allowing the ethnic leaders to recruit combatants at a lower cost.

Analysis Of The Influence Of Minimum Wages, Central-Regional Transfer Cost Allocation And Fiscal Decentralization On Regional Income Inequality

In any nation, income disparity is a crucial issue for development. The disparity in income distribution is the primary cause of income inequality. The increasing income disparity is a sign of the growing inequality in the allocation of income in society. The authors of this study aim to investigate how income inequality is affected in the regencies and cities of one of provinces minimum wage in Indonesia, central-local transfer cost allocation, and fiscal decentralization. The Fixed Effect Model (FEM) approach is used in this study's panel data analysis. The author's analysis indicates that while there is no significant association between income inequality and fiscal decentralization, there is a substantial relationship between income inequality and the allocation of central-regional transfer costs and the minimum wage. Income inequality is significantly impacted by fiscal decentralization, minimum wage, and central-regional transfer cost allocation.

Analysis of Turkey's classic and financial kuznets curves in regards to the level of development and increased distribution

In this research, we probe the authenticity of both the Financial Kuznets Curve hypothesis and the classical Kuznets curve within the Turkish economy, exploring the interrelation between financial development and income distribution. By employing the ARDL bounds test approach in the econometric analysis, we ascertain that the Financial Kuznets Curve is applicable to Turkey. This means the correlation between income distribution and the extent of financial development adopts an inverted U-shaped pattern. Moreover, the interrelation between GDP and income distribution doesn’t form an inverted U pattern, demonstrating that the classical Kuznets curve is not pertinent in the context of Turkey. From the derived outcomes, it is inferred that prioritizing policies that accentuate financial development would constitute a more judicious economic strategy in Turkey, particularly for redressing disparities in income distribution, instead of merely focusing on economic growth.

Problems and Prospects in Medical Insurance System Development

China has experienced remarkable economic growth since its reform and opening-up; the gross domestic product and residents' disposable income have both increased, and the disparity in income distribution has also come to light and become a common concern for all facets of Chinese society. China has already surpassed low-income nations in terms of income level. The level of national welfare should be raised even when the economy is expanding with excellent quality. This essay talks about how China's health insurance system has evolved and how it might be improved to better the lives of its citizens. This paper compiles and analyses the development process and policies of health insurance reform. The effectiveness of the program is assessed by examining if it has raised inhabitants' quality of life and reduced the disparity in income. Moreover, The divergence of economic and policy development between urban and rural areas, and, additionally, the government management fragmentation, are two primary challenges encountered in the implementation of the program. These issues are brought on by the economy's stage of development and the long-standing customs of the policy-making process. The social health insurance system must precisely assist special groups, expand fund investment, enhance social security mechanisms, and foster harmony between urban and rural areas in order to fulfill its mission of fostering social fairness.

Income inequality and touristic resources in Uruguay: A spatial approach

It is known that the endowment of natural and built amenities affects tourism development directly, but it is less known how the allocation and distribution of amenities in a country could generate regional disparities in income distribution. The aim of this study is to explore regional inequalities in wages and their relationship with the development of tourism in Uruguay. We built four indices of touristic  amenities (landbased natural amenities, water-based natural amenities, cultural-historical amenities, and recreational amenities) and then interact them with tourism employment, as a proxy for tourism development for the period 2006-2019. In addition, we estimate a spatial error model to analyze the relationship between income inequality and tourism development. The evidence suggests that there are some regional disparities in income distribution in the tourism sector. Also, some specifications of the econometric models show a positive relationship between employment in activities related to tourism and inequality in labor income, and that the departments with cultural-historical amenities tend to have a more equalitarian distribution of labor income.

A simulation of increasing rice price toward the disparity of income distribution: An evidence from Indonesia

PurposeConsidering the significance of rice as a staple food in Indonesia, this study aims to analyze the impact of various factors, i.e., domestic price production level, exchange rate, international rice price, and Gross Domestic Product (GDP) per capita, on domestic rice prices and the resultant disparity in income distribution and inequality in the country. MethodsA simulation analysis has been performed to assess the impact of the above-mentioned factors on rice prices and the resultant income disparity in Indonesia. For that, input data from 2006 to 2020 was used to depict the change in domestic rice prices from 2021 to 2026 due to independent variables changes. FindingsResults revealed that a regular increase in rice production decreases rice prices in the longer term. Besides, a rise in the exchange rate decreases rice prices, and a fall in the exchange rate results in higher rice prices. Results also showed the insignificant impact of international rice prices on domestic rice prices in Indonesia. In contrast, an increase in per capita income reflected an increase in rice prices. Moreover, the result of the study exemplifies that the expenditure for rice has a very low elasticity (0.0975) compared to the expenditure on non-rice food (0.4096). More than half of the total household expenditure (50.71%) is spent on food, while the rest (49.29%) is used for non-food. The increase in rice prices affects the rise of income amongst farmers and declines the income of non-farmers. Hence it affects the decline of disparity in households' income distribution. Originality/valueThis study adds value to the existing literature with several implications for practitioners, policymakers, and government organizations to take necessary measures to stabilize rice prices and income distribution among the various income groups.

Income Inequality in Nepal

Income inequality refers to a situation in which most of the national income is being distributed unevenly. Nepal is a small country with a population of nearly 30 million. It consists of a diverse society with disparity in health, education, opportunities, and income. The disparity in income distribution is measured with the help of Gini Coefficient with value ranges from zero (absolute equality) to 1 (absolute inequality). Presently the Gini coefficient of Nepal is 0.4. It indicates a big inequality in the distribution of the national income pie of Nepal in which a small portion of the population say the upper 10 percent are getting a big chunk of national income.

ASSESSING THE CONTRIBUTION OF PHYSICAL AND FINANCIAL INFRASTRUCTURE TO INCLUSIVE DEVELOPMENT IN PAKISTAN

The growing income inequalities along with lack of access to education and health in developing economies have resulted in economic and social restlessness which eventually shifted the attention of policymakers from growth objectives to inclusive economic development. This study constructs an index for inclusive development using UNDP’s (2011) human development index approach. Furthermore, this study analyzes the role of the financial and physical infrastructure to fight against disparities in income distribution and providing access to education and health thereby enabling the economy to move along the road that leads to inclusive development. The findings of this paper imply that physical infrastructure and financial development positively affect inclusive development. Thus, there is a need to promote investment in financial services and physical infrastructure to foster inclusive economic development. Keywords: Physical Infrastructure, Financial Issue, Inclusive development, Pakistan.

Stylized Fact Approach to Income Distribution Pattern among Fish Seed Producers in Jharkhand, India

One of the serious impediments to sound policy on freshwater aquaculture is the lack of farm-level data and consistent empirical evidence, especially on income. To understand the income generation through fish seed production through the community participation approach initiative of the Directorate of fisheries, Jharkhand, we analyzed the income distribution pattern of 498 fish seed producers of Jharkhand. The data was collected from different districts of Jharkhand by DoF for the year 2017-18. The results revealed high gender disparity in fish seed production as only 2.41 per cent were found out to be women. It was observed that fish seed production has a high potential to be a very lucrative business as income showed wide variation ranging fromRs.50,000 to Rs.27,50,000. The Lorenz curve analysis showed moderate-income inequality indicating a higher concentration of income with the top 10 per cent of the population. Further investigation showed that the top 10 per cent of the population earned 60 per cent of total cumulative income which was higher than the national average which was 57 per cent while the bottom 50 per cent of the population earned just 20 per cent of total cumulative income. The income inequality from the GINI co-efficient was 0.48 which was lower than the national average which was 0.55. The study concludes that though income inequality is lower than the national average however the concentration of income with top 10 per cent was higher than the national average. A more detailed study on fish seed production is needed to understand the underlying facts for the disparity in income distribution among fish seed producers.

The Effect of Territories on Inequalities of Opportunities for Citizens in China over Their Lives

Inequality has been intensively studied for its role in promoting balanced economic development in China. The territorial inequality of coastal-inland provinces and urban-rural areas has been considered a leading cause of opportunity inequality and unequal individual development in different regions. This research aims to investigate how and to what extent territorial inequality affects personal development. The research also aims to provide a new understanding of inequality by presenting it throughout different life stages, from pre-working age to retirement age. Also, the research aims to evaluate the changes in data in terms of policies implemented by the Chinese government. The research method includes a series of econometrics tools. The research has adopted Ordinary Least Square (OLS) regression to analyse selected data from the most up-to-date survey years, from 2000 to 2015. To reflect the opportunity inequality, the study uses the ratio of the Gini coefficient from regression and the Gini coefficient from the sample. The Theil index is used to measure regional disparity, and the Mean Logarithmic Deviation Index is used to measure income inequality. The study also examines the correlation between different dependent variables to approach a more accurate and representative conclusion. The study conducts the quantitative research successfully and concludes territorial inequality strongly correlates with the inequality of opportunity at education and income levels. Problems at the education level have become more significant yearly, and the disparity in income distribution remains high throughout the period. The extension test supports a weak correlation between education and income, pension and education. The study suggests that the government could allocate more resources and focus on reducing territorial inequality by promoting technological advancement, geographical mobility and a series of welfare policies.

Household consumption patterns and income inequality in EU countries: Scenario analysis for a fair transition towards low-carbon economies

The growing awareness of the current and future consequences of climate change has led to a range of international commitments aimed at ensuring sustainable development as part of the United Nations Framework Convention on Climate Change, and the Paris Agreement. These agreements reflect a concern of how to reduce carbon emissions and the pathway towards environmental improvement. Recent literature has pointed out the role of households as direct and indirect drivers of environmental impacts and as key agents in achieving low-carbon economies and climate-resilient development. Disparities in income distribution and lifestyles within and among countries, however, entail a different starting point for each country to reach sustainable pathways. The EU is fully committed to delivering on the United Nations 2030 Agenda and its implementation. Inequality continues to be a significant concern, reflected in the UN's Sustainable Development Goals. In this context, we explore the relationships between household consumption patterns in the EU, income inequality, and global carbon emissions trends, using an environmentally extended multiregional and multisectoral input-output model. We study the trends in global carbon emissions associated with the different household consumption patterns and income categories over 15 years, and evaluate the role of income distribution, consumption patterns, and technological conditions by country and income group. Additionally, we study, through certain scenarios, the potential achievement of double dividends, by alleviating poverty and reducing emissions.

Unbundling interest rate and bank credit nexus on income inequality: structural break analysis from Nigeria

PurposeIncome inequality stalls economic growth with undesirable socio-economic consequences. Despite various measures targeted towards reducing the inequality gap, disparities in income distribution persist in Nigeria. Therefore, this study aims to explore a new line of argument to the finance mechanism in reducing income inequality.Design/methodology/approachThe study uses time-series data on Nigeria from 1980 to 2015 with analysis conducted using the autoregressive distributed lag-error correction model approach of Pesaran et al. (2001).FindingsThe results show amongst others that the channel of real interest rate on income inequality is through bank credit, real interest rate has an indirect relationship to income inequality and bank credit has an equalising impact on income inequality when the model is augmented for a structural break. The results show amongst others, that, on average, ceteris paribus, a 1% point increase in the real lending interest rate is associated with a 0.45% decline in the volume of bank credit.Originality/valueThis paper engages a new line of argument by unbundling how financial intermediation impacts on income inequality. The extant literature submits that finance directly impacts income inequality, whereas this study investigates further to show that interest rate impacts income inequality through bank credit. That is, the transmission mechanism by which finance affects income inequality is modelled and analysed.

Nutrition Related-Practices in Brazilian Preschoolers: Identifying Challenges and Addressing Barriers.

Over the past decades, Brazil has faced important challenges regarding the nutrition of toddlers. Changes in dietary intake and feeding habits switched the scenario from undernutrition to increased rates of overweight and obesity. Determinants related to that issue involve the disparity in income distribution, the structure of food production and access, and the role of programs and policies, mostly related to its historical context. The feeding of Brazilian toddlers is characterized by low consumption of fruits, vegetables, and fiber, and high and early intake of fried foods, salty snacks, and sugar. Skipping important meals, e.g., breakfast, and poor snacking habits are also important practices related to excess weight. Integrated actions aiming to establish healthy eating habits in children must involve families, schools, governments, and food industry. Exploring the variety of fruits and vegetables available in the country helps to provide a healthy nutrition environment. Increasing the availability of nutrient-dense foods in the home environment improves the quality of food directed to children. Improving children's diet quality goes beyond promoting nutrition education. A favorable environment enabling to translate intentions into practice is essential, and it involves a multisectoral and an integrated framework with individual modifications and political interventions.

WHAT COULD CAUSE A COUNTRY’S GNP TO BE GREATER THAN ITS GDP?

This paper seeks to establish whether there exist factors that could render a country’s Gross National Product (GNP) greater than its Gross Domestic Product (GDP). It is not known whether a similar study has ever been previously undertaken as the literature search fails to discover any. Data of countries worldwide, to the extent of their availability, are drawn generally for years that fall within the 2000–2016 period for this study. The factors postulated as positive and negative determinants include the savings-investment gap, international reserves, technological sophistication, demography, unemployment, export orientation, income inequality, size of the primary commodities sector, financial repression, tax incidence and labor market regulations. Of these factors, the logit and probit regressions pursued reveal that only income inequality, size of the primary commodities sector and export orientation are the significant determinants. They work to dampen the probability of a country to register a GNP higher than GDP. A supplementary panel regression analysis also suggests these as factors that could reduce a country’s GNP to GDP ratio. In light of such findings, countries should address the problem of disparity in income distribution and promote indigenous ownerships in their primary commodities and export-oriented sectors if they are striving for an excess of GNP over GDP.

Environmental Sustainability: Worldview, Philosophy and Teachings

Economic choices influenced by animalistic instincts in an ethically neutral framework have not only resulted in huge disparities in distribution of income, wealth and standards of living, but, as we now realise, they have also resulted in an unprecedented loss to ecology and environment with catastrophic consequences for future generations. More than ever, economics as a discipline of knowledge needs an ethical base in order to rekindle a spiritual rationality that can enable us to take into account equity considerations more explicitly in economic choices, both at the individual and at the societal level. This paper explains how Islamic economics can help in bridging the gap. The paper explains the teachings of Islam on different environmental issues and shows how the Islamic worldview can help to encourage and reinforce environmentally friendly behaviour and choices.

Environmental Sustainability : Worldview, Philosophy and Teachings

Economic choices influenced by animalistic instincts in an ethically neutral framework have not only resulted in huge disparities in distribution of income, wealth and standards of living, but, as we now realise, they have also resulted in an unprecedented loss to ecology and environment with catastrophic consequences for future generations. More than ever, economics as a discipline of knowledge needs an ethical base in order to rekindle a spiritual rationality that can enable us to take into account equity considerations more explicitly in economic choices, both at the individual and at the societal level. This paper explains how Islamic economics can help in bridging the gap. The paper explains the teachings of Islam on different environmental issues and shows how the Islamic worldview can help to encourage and reinforce environmentally friendly behaviour and choices.

Income Stratification: Key Approaches and Their Application to Russia

The various approaches to income stratification can be divided into two broad categories – relative and absolute. Our study suggests that the most widely used thresholds of the absolute approach cannot be efficiently applied to contemporary Russian society, which has undergone fundamental changes over the last 15 years regarding income, as they fail to define the subgroups within the population. Absolute models of stratification which define income groups based on a pre-determined income thresholds rank Russia in line with industrially advanced rather than developing countries, rendering the absolute income bounds, set for the latter group of countries, irrelevant. The relative approach, based on the median income as the social standard of living, appears more effective for income stratification in Russia. Furthermore, it also implies possibilities for structural adjustments such as regional- and settlement-specific disparities in income distribution, which are relevant for Russia given its regional heterogeneity. The application of the relative approach in authors’ version shows that the income stratification model in Russia is quite stable even during the economic crisis. The results of the comparison between the Russian income stratification model and those of other countries confirm that Russia's income stratification model is currently more similar to those of developed rather than developing countries.

Environmental quality: impact of economic growth

AbstractUsing a vertically differentiated product model, the paper aims to investigate the effects of economic growth on market provision of product quality. The quality attribute considered is the environmental friendliness of products. Economic growth is modeled as a shift in income distribution. It shows that the effect of economic growth depends on the form it takes. A growth in income that is uniform across consumers improves the cleanup levels adopted by both firms. However, a growth in income that is accompanied by changes in income inequality may result in the lowering of one of the two qualities. More specifically, if the growth in income is accompanied by increased disparities in income distribution, the quality of the (environmentally) inferior variant is reduced. This has serious implications for the poor consumers if the product has safety or health hazards. The paper suggests a regulatory measure to prevent such deterioration in the quality of the inferior variant.

Socially responsible mining: the relationship between mining and poverty, human health and the environment

Increasing global demand for metals is putting strain on the ability of the mining industry to physically keep up with demand (physical scarcity). Conversely, social issues including the environmental and human health consequences of mining as well as the disparity in income distribution from mining revenues are disproportionately felt at the local community level. This has created social rifts, particularly in the developing world, between affected communities and both industry and governments. Such rifts can result in a disruption of the steady supply of metals (situational scarcity). Here we discuss the importance of mining in relationship to poverty, identify steps that have been taken to create a framework for socially responsible mining, and then discuss the need for academia to work in partnership with communities, government, and industry to develop transdisciplinary research-based step change solutions to the intertwined problems of physical and situational scarcity.

Can a Dividend Tax Credit Be Justified in a Small Open Economy?

The stated purpose of Canada's Dividend Tax Credit (DTC) is to avoid double taxation of shareholders, given that corporate income tax has already been paid by their companies. I argue that the double tax viewpoint is a throwback to a closed economy world. The rate of return on equity net of corporate tax in Canada is set by the global market. Canadian shareholders are not the marginal suppliers of capital to major Canadian corporations and they do not actually bear much of the burden of the CIT. This implies that the taxation of dividends does not significantly affect capital investment in Canada. The DTC is effectively a tax expenditure that subsidizes the ownership of shares in Canadian companies by Canadian residents. There is evidence that it has created a substantial degree of home bias on the part of taxable Canadian investors. However, the evidence is mixed on whether there is an economic benefit to having greater Canadian ownership of local corporations.The clearest impact of the DTC is on income distribution. A disproportionate share of dividend income is received by people with incomes over $250,000. Therefore, the DTC reduces the progressivity of the tax system. It deserves a hard look in the context of concern about growing disparity in income distribution.