Excessive Inequality Research Articles

The Relationship between Income Inequality and Economic Growth

The relationship between income inequality and economic growth has long been a subject of intense academic debate, with varying perspectives emerging from different theoretical and empirical studies. This article delves into the complexities of this relationship, exploring how income inequality can both positively and negatively impact economic growth, depending on the context. Theoretical perspectives range from the classical Kuznets Curve, which posits that inequality initially increases with economic growth before eventually declining, to more contemporary views that highlight the risks of excessive inequality, particularly in developing economies. Empirical evidence from developed and developing countries further underscores the nuanced nature of this relationship. In developed economies, income inequality may sometimes promote growth by incentivizing investment and innovation, provided there are strong institutions to mitigate potential downsides. Conversely, in developing economies, high levels of inequality often inhibit growth by restricting access to education, healthcare, and other essential services, thus limiting human capital development. The study also emphasizes the critical role of institutions and policy interventions in shaping the relationship between income inequality and economic growth. Effective governance, progressive taxation, and investment in social infrastructure are highlighted as key strategies to balance growth with equity. The findings suggest that while some inequality might be necessary to spur economic progress, excessive inequality poses significant threats to long-term sustainable development. The article concludes by advocating for a balanced policy approach that promotes inclusive growth and ensures that the benefits of economic expansion are shared more broadly across society.

Taking a health economic perspective in monitoring health inequalities: A focus on excess weight

BackgroundTraditional approaches to monitoring health inequalities predominantly rely on headcount methods. However, these methods fail to reflect the non-linear health economic implications of changes in disease severity. Alternative, distribution-sensitive metrics are available which could more adequately inform financial planning and policy decision making. MethodsWe describe the design of the Foster-Greer-Thorbecke (FGT) index, and discuss its relative merits as a summary monitoring metric of health inequalities in the population, compared to the Erreygers concentration index. We illustrate the FGT index by conducting a comparative longitudinal analysis of adult excess inequalities in England using Health Survey for England data from 2009 to 2019. FindingsExcess weight inequalities have steadily increased in the English adult population, especially over the last five years. Going beyond headcount, the FGT index analyses revealed that, unlike the rest of the population, the average overweight adult from the most socio-economically deprived group is either obese (30.3 BMI for females) or at the brink of obesity (29.1 BMI for males). These results underscore a deepening divide in obesity severity between communities, with the most socioeconomically deprived groups being increasingly and disproportionally affected. Conclusions: The FGT index can address some shortcomings of traditional approaches to inequality measurement and local governments should consider adopting it as an alternative population health metric. Future research should apply and develop more refined distribution-sensitive measures of health inequality.

BETWEEN THE SCYLLA OF EQUALIZATION AND THE CHARYBDIS OF INEQUALITY: LABOR REMUNERATION ON THE ALTAI RAILWAY IN 1917

The authors examine inequality in an important branch of the Russian economy during the World War I using the materials of one of the large West Siberian enterprises. The study relies on the sources for the first time introduced into the scientific circulation: data from the funds of the tax inspectorate, which are related to the determination of the circle of income taxpayers and their earnings. The advantageous feature of these lists is that they include not only taxpayers (recipients of relatively high income), but all employees of the enterprise in general. Information on the wages of almost 400 employees of the Altai Railroad, from watchman to manager, was used to calculate the decile coefficient. This allows us to expand the field for microhistorical study of inequality by statistical methods through including new industries and new regions. In addition, one of the lists contains information that allows us to raise the question of the need to study additional parameters of inequality in Russia at the beginning of the20th century. It is shown that the income differentiation of railroad workers increases significantly when taking into account their dependents (primarily children), i.e. taking into account family composition can change the interpretation of the degree of income inequality. Another list gives the authors a rare opportunity to examine the wages of railroad employees taking into account individual components of earnings (including salary, military increment, bonuses, payment for extracurricular work). The analysis of change in the decile ratio depending on the above-mentioned payment issues allowed us to prove that one of the weighty additions to the salary reduced the gap between the incomes of the highest and lowest employees, and the other, on the contrary, gave an opportunity to earn more to those who wanted it. Thus, it is demonstrated that one of the wage systems created before the revolution allowed to avoid simultaneously both problems that would become urgent for the new authorities in the 1920s - equalization and excessive inequality.

INCOME INEQUALITY OF RURAL HOUSEHOLDS IN POLAND – ANALYSIS BY SOURCE OF INCOME

Rural households live on income much lower than the national average and experience income inequality much higher than the general population. This excess inequality is primarily due to the internal heterogeneity caused by the different nature of household income sources. The purpose of the study was then to assess the level of rural household income inequality and to decompose the inequality index by the main sources of income. The chosen inequality index was Theil-T. The research drew on unidentifiable microdata from the Household Budget Survey conducted by the CSO in 2019-2021.The study found that rural household inequality was slightly higher than that of all Polish households over the analyzed period. Among the various income-source groups, the highest inequality affected farmer households. This group also contributed most to the overall level of inequality in rural areas (44% in 2019 and over 46% in 2021). The pandemic saw an increase in inequality for all identified groups of rural households (the largest – for farmer households) and a decrease in between-group inequality.

Gagasan Zuhud Modern dan Relevansinya dalam Upaya Peningkatan Etos Kerja Kaum Sufi

Islam teaches about a principle of balance in life. Excessive inequality on one side will result in not being in line with the mission of Islamic teachings. Like the problems of the world that should be balanced with the problems of the hereafter. The idea of zuhud in classical Sufism was interpreted as an effort to distance oneself from worldly matters and to focus more on the afterlife. As a result, this greatly affects the work ethic of the Sufis who regard worldly matters as lowly. The spirit of worship is not in line with the spirit of increasing the economy. The dynamics of concept development in explaining the meaning of zuhud has shifted from time to time. Zuhud in modern times began to discuss social, political, legal and economic issues. This research is a qualitative research using historical analytical methods to review the thinking paradigm of the Sufis in interpreting zuhud from classical to modern times and relating it to contemporary problems as capital for efforts to improve the work ethic of Sufis. Thus a conclusion is obtained that the idea of modern asceticism does not mean refusing wealth that comes to him. Rather, wealth must be picked up as a bridge to its closeness to God. The spirit of work ethic is interpreted as a manifestation of sincerity which is the maqomat in Sufism. In the end, this is what causes Sufism to be known more openly. Not only discussed in mosques or quiet places, Sufism is now widely discussed in public in the form of seminars. In fact, the term "sufi with a necktie" has even emerged as a designation for Sufis who harmonize economic life with the affairs of the hereafter.

Living standards as a factor in ensuring the economic growth quality

Subject. This article examines the consumer component of economic growth. Objectives. The article aims to substantiate the need to improve the standard of living of the population of Russia and analyze the quantitative and qualitative characteristics of the standard of living of the country's population and the pace of its economic development. Methods. For the study, we used the general scientific research methods. Results. The article finds that the main factor limiting Russia's economic development is the excessive inequality between the incomes of the poorest and the richest. Conclusions. The article concludes that the investment model of socio-economic growth in Russia has not been formed. The full potential of the entrenched consumer growth model must be realized by expanding the material opportunities of low- and middle-income groups.

Inequality: the scourge of the twenty-first century

ABSTRACT Rising inequality is a ubiquitous problem, encompassing every geographical region and nation in the world. Inequality can be contended to have replaced unemployment as our most vital economic issue. After nearly six decades of declining inequality from the time of the First World War, the process has reversed itself with a vengeance, and we may be about to surpass the very high levels of inequality that prevailed in 1914. The causes are multifarious, including accelerating globalisation, plutocratic politics, excessive emphasis on ‘meritocratic’ pay, declining public expenditure, and social protection combined with the high rates of return on ‘capital’ compared to the overall economy’s growth rate. Inequality between nation-states may be declining because of the rise of China, but within countries, inequalities are increasing everywhere. Excessive inequality prevents social mobility and contains the seeds of social conflict and even civil wars. Most crucially, excessive and rising inequality makes democratic politics and governance unsustainable. High inequality may be a causal factor behind the decline of democracy and the rise of autocracy and populism that we are witnessing globally. In the ultimate analysis, the reduction of inequality necessitates wealth taxes.

Social inequality as a political and managerial issue in the development of Russian regions. Part 2

This article presents the results of a longitudinal study on the phenomenon of social inequality within the context of studying the domestic governance system, specifically through the assessment of the attitudes of the regional political and administrative groups toward the functioning of established regional governance systems and the evaluation of the accessibility of basic social institutions to the population. During the initial stage of the research, the results of preparing an integrated index of political and administrative activity group were presented, enabling the analysis of excessive social inequality in the regions of Russia. It was found that the developed system of indicators of political and administrative inequality in regions can be considered through the assessments of specially distinguished political and administrative groups. This was confirmed through trial measurements based on multinomial regression analysis. The article presents the final results of the study. Based on the configured empirical index, the evaluation of the functioning of the governance system in regions with different levels of socio-cultural modernisation is measured. These levels either facilitate or hinder: 1) maintaining the quality and accessibility of the region’s basic social institutions, and 2) creating conditions for civic and political activity, involving political and administrative groups in decision-making processes regarding regional development. Based on the research results, it is justified that the system of basic indicators for identifying and measuring social inequality in regions can be analysed through the assessments of specially distinguished political and administrative groups. However, it is crucial to consider the differentiation of regions based on levels of socio-cultural modernisation, as each group of territories exhibits unique types of excessive inequalities, contradictions, and issues. The proposed approach is useful for identifying negative trends that contribute to the activation of mass politics and for assessing the quality of public policy implementation in regions and territorial settlements.

Investigating the asymmetric effect of income inequality on financial fragility in South Africa and selected emerging markets: a Bayesian approach with hierarchical priors

PurposeThis study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.Design/methodology/approachIn this study, the researchers used time-series data to estimate a Bayesian Vector Autoregression (BVAR) model with hierarchical priors. The BVAR technique has the advantage of being able to accommodate a wide cross-section of variables without running out of degrees of freedom. It is also able to deal with dense parameterization by imposing structure on model coefficients via prior information and optimal choice of the degree of formativeness.FindingsThe results for all countries except Peru confirmed the Rajan hypotheses, indicating that inequality contributes to high indebtedness, resulting in financial fragility. However, for Peru, this study finds it contradicts the theory. This study controlled for monetary policy shock and found the results differing country-specific.Originality/valueThe findings suggest that an escalating level of inequality leads to financial fragility, which implies that policymakers ought to be cautious of excessive inequality when endeavouring to contain the risk of financial fragility, by implementing sound structural reform policies that aim to attract investments consistent with job creation, development and growth in these countries. Policymakers should also be cautious when implementing policy tools (redistributive policies, a sound monetary policy), as they seem to increase the risk of excessive credit growth and financial fragility, and they need to treat income inequality as an important factor relevant to macroeconomic aggregates and financial fragility.

Income inequality and economic growth: the reexamination of the existence of Kuznets curve: evidence from CEE countries

Motivation: In the last years, a lot of attention has been paid to economic inequality — a phenomenon that may lead to what some commentators predict as the end of capitalism. At the same time some economists believe that the economic inequalities are natural and excessive inequalities can be reduced through the process of economic growth. The natural starting point in the discussion concerning the relation between inequality and economic growth is the theory proposed by Simon Kuznets, according to which inequality rises in the early phases of economic development but falls eventually as the growth advances, taking the shape of the inverse-U shaped pattern. The empirical validity of the so-called “Kuznets curve” has been intensively investigated, but the evidence is ambiguous. In this context re-examining Kuznets theory in CEE countries is interesting especially because of the observed rapid economic growth as a result of structural transformation in these countries.Aim: The aim of the study is an attempt to investigate the nature of relation between economic growth and income inequality levels in Central and Eastern Europe (CEE) countries in years 2004–2020 and verify if the analysed relation is taking an inverse-U shape as indicated by the Kuznets curve.Results: The results of conducted analysis indicate that the evidence for an inverted-U shaped relation between inequality levels and economic growth in CEE countries is much less robust than what is implied by Kuznets curve theory.

The problem of excessive inequality as an obstacle to the realization of the functions of the social state (on the example of the Volga Federal District)

The aim of the work is to determine the extent of regional differentiation in living standards (based on the analysis of monetary indicators) within the Volga Federal District, as well as the determination of the intraregional level of socio-economic inequality. The object of the study is the phenomenon of inequality as an antipode of the criterion of the social state. The subject of the study is the parameters of socio-economic inequality by income of the population of the regions of the Volga Federal District. The research methodology is based on an interdisciplinary approach to the study of the phenomenon of inequality as a limiter of the target function of the social state. Results of the study and scientific novelty. 1. The author proposes to determine the degree of distancing society from the practical realization of the idea of the social state, defining the state of equality as a blue marker of the social state, and excessive inequality as a red marker of the social state. 2. The paper presents an analysis of the level of socio-economic inequality of the regions of the Volga Federal District. 3. In the author's opinion, one of the trigger mechanisms for solving the problem of socio-economic inequality should be social elevators that reduce the degree of distancing from the blue marker of the social state. 4. The author sees the root of solution in the structural transformation of the economy.

Scientific Research for European Decision-Making

No AccessScientific Research for European Decision-MakingEmilia Blank, PhD Lukas Danko, Kata Katz, Dr. sc Volodymyr Polishchuk, Dr Ivan RubinićEmilia Blank University of Wuppertal Germany BA; is currently finishing her double master’s degree from the University of Wuppertal and Andrássy University in Budapest. She is majoring in Policy Science and International Relations, while also working at the Institute for Democracy and Participation Studies as a research assistant. In addition to being the chairwoman of an association advocating for equal access to education around the globe, her interests lie in development cooperation between countries as well as educational policies within Europe.Search for more papers by this author, PhD Lukas Danko Tomas Bata University Czech Republic PhD; is an assistant professor and secretary at Tomas Bata University in Zlín, Faculty of Management and Economics, Department of Regional Development, Public Sector Administration and Law. With a background in economics, Lukáš has a range of interests in creative economy, collaborative spaces, and multi-level governance. He has published both qualitative and quantitative papers in WoS and Scopus, and book chapters in Routledge, and Springer.Search for more papers by this author, Kata Katz University of Arts Berlin Germany MA; studied Philosophy, Literature and Film Studies at the University of Szeged, Hungary. She is currently a PhD candidate at the University of Arts Berlin (UdK), Germany. She is an independent lecturer and one of the co-founders of the Project Failure Stories. Her research focuses on media and photography theory, philosophy of science and science history.Search for more papers by this author, Dr. sc Volodymyr Polishchuk Uzhhorod National University Ukraine Dr. sc; is a professor at Uzhhorod National University (Ukraine). He is a project manager and expert on many IT and scientific projects, whose interests include research and development in information technology and aviation, with an emphasis on assessing process control in complex systems. He is the author of more than 150 scientific works.Search for more papers by this author, Dr Ivan Rubinić Maastricht University The Netherlands Dr; is a postdoctoral researcher in European integration at Maastricht University. He is working toward the advancement of political economy, economic inequality, and international trade. Ivan is a political economist committed to exposing that excessive inequalities stand in the way of the European vision of shared prosperity, equality, and cohesiveness. His scholarly record is comprised of a number of publications, including Palgrave Macmillan, Routledge, and Oxford University Press.Search for more papers by this authorPublished Online:Feb 2023SectionsPDF/EPUB ToolsAdd to favoritesDownload CitationsTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail About Previous article Next article FiguresReferencesRelatedDetails Download book coverVolume 63Issue 1-2February 2023 ISSN: 0012-5415eISSN: 2307-289XHistoryPublished online:February 2023 PDF download

Analysis of the possibility of eliminating excess inequality through income redistribution

The main idea of the research paper is the redistribution of personal incomes. The subject is the effects of eliminating excess inequality. The core of the research paper is creating a model of erasing personal incomes under the subsistence minimum using a redistribution model. One possible way to get rid of personal incomes below the subsistence minimum is a partially progressive tax, which separates income into different sectors and settles a tax rate for each sector. Eventually, the redistribution can be held by certain society groups using a tax for wealthy people and government subsidies for poor segment of the population or evenly proportional income redistribution. It is useful to consider and compare two indicators: subsistence minimum and minimum consumer budget. A minimum consumer budget is a set cost of food and non-food products and services that meet basic physiological and sociocultural needs. In fact, it is the cost of the minimum consumer basket. The minimum consumer budget determines the lower bound value of life in society, followed by poverty. In Russia, this indicator is not popular, but it has a potential to be useful. In fact, one of the most important function of a tax system is keeping balance in society. The methodology is a redistribution optimization model. The optimal level of income inequality implies that there is a level of income inequality that maximizes economic growth. The optimization model consists of key parameters that determine inequality level, such as tax rate, education, and fertility. In some ways, the tax scale is not fair for definite groups of people. People have a social order to reconsider a tax scale. The result is a block of recommendations for shifting personal income inequality rate to a balanced point. The paper is aimed to provide a strategy for applying the fairer redistribution model with simple computations and prove that it can be applied with relatively low effort.

Trends in Income Inequality and Its Impact on Economic Growth

In recent years, climate change and the pandemic have brought the issue of the link between inequality and economic growth to the fore. In my essay, I examine this relationship, focusing on whether inequality has a positive or negative effect on economic growth. I approach the issue through the lens of income inequality without seeking to explore all aspects of inequality. Starting from the relevant conceptual framework, I present the link between global inequality and long-term growth. Since inequalities affect both developed and developing countries, I compare them and show why the latter cannot repeat the economic progress achieved by earlier industrialisers. Finally, I conclude that the clear objective should be to reduce excessive inequalities.

Regional reindustrialization and deindustrialization on the example of Poland

Purpose: The aim of this paper is to assess the diversity of changes in Poland's industrial sector, distinguishing the ICT section, on a regional basis, and to classify the regions according to the value of the location quotient index. Design/methodology/approach: The article uses the following methods: critical analysis of the literature and analysis of statistical data using selected statistical tools. On the basis of the data, obtained from the Local Data Bank (GUS), the dynamics and share of production and employment in the industrial sector were calculated, also including the ITC sector. The analysis covered 16 provinces from 2000 to 2021. Findings: Analysis of selected variables in the analyzed years confirmed the existence of regional disparities in Poland, the presence of both reindustrialization and deindustrialization processes and the leading role of the Mazowieckie voivodeship in the ITC sector. Research limitations/implications: The research conducted in the article represents only one aspect of the assessment of regional disparities. In the course of a broader, more detailed study, it is possible to conduct research at a more local level and to apply additional indicators and methods to evaluate the economic situation of the regions. Practical implications: Knowledge of the mechanisms and regularities of regional development is the basis for shaping policies that would ensure, on the one hand, high and sustainable development dynamics, and, on the other hand, lead to the reduction of regional inequalities. Social implications: A situation of excessive inequalities can lead to conflicts and tensions within communities. Therefore, one of the goals of the state's economic and social policies should be to reduce regional disparities, in favor of sustainable development and improving the quality of life in the country. Originality/value: The article analyzes using the most current statistical data of selected variables and statistical tools. Thus, it can provide another element towards learning about the regularities of regional inequality in the Polish economy. Keywords: reindustralisation, deindustralisation, regional disparities, location quotient. Category of the paper: Research paper.

Classification of methods and instruments of government financial regulation of households socio-economic inequality

One of the most dangerous risks of growing socio-economic inequality is the ability of the latter to that it can transform into political inequality, initiate the creation of extractive economic institutions and lead to the degradation of the country’s development. The article provides a critical analysis of the modern classification of instruments of economic inequality regulation presented at the Peterson Institute conference in 2019. Based on this concept, an expanded and more universal classification of methods and tools is proposed, and the most relevant ones are discussed taking into account modern realities. In conclusion, we gave recommendations for the Governments of developed and developing countries concerning the priorities in choice of methods and instruments of socio-economic inequality regulation in order to avoid an increase in excessive economic inequality and subsequent socio-economic problems.

The 2022 Veblen-Commons Award Recipient: L. Randall Wray: Wampeters, Foma, and Granfalloons: Enabling Myths and Not-So-Innocent Frauds

This article examines the innocent frauds (J. K. Galbraith) or enabling myths (W. Dugger) that are used to justify capitalism’s inexcusable excesses: excessive inequality, exploitation, and war. As Joseph Campbell put it, the sociological purpose of myth is “that of validating and maintaining some specific social order, authorizing its moral code as a construct beyond criticism or human emendation”—a description of conventional economic theory with its focus on the “invisible hand” of the "free market.” Combining the socio-anthropological approaches of Campbell, the Institutionalist approach of economists like Dugger, and the literary approach of Kurt Vonnegut, this articles exposes a half dozen of the most important myths used by economists and policy-makers to protect an immoral and unsustainable social order.

The need for a strategy on men's health

Now that the UK Government has announced a women's health strategy, it is time for a national strategy on men's health too. This must recognise it as a whole life‐course issue impacting on every stage of men and boys’ lives, and include action on the social determinants that lead to such excessive inequalities between different men.

Income and wealth distribution in the European Union and Russia: comparativ analysis

The subject of the study is the features of economic relations between income and wealth distribution/redistribution in Europe and Russia from the perspective of the need to overcome excessive socio-economic inequality. The aim of the article is to determine the level of existing socio-economic inequality, to make cross-country comparisons of income and wealth differentials in society, and then to substantiate the possibilities of applying the best practices of foreign countries to reduce socio-economic inequality in Russia. The methods of research are philosophical (dialectical, critical), general scientific (methods of scientific abstraction, the unity of the historical and logical, analysis and synthesis, induction and deduction, analogy, classification), private scientific (economic and mathematical, statistical, functional). The theoretical significance of the study lies in the development of the theory and methodology of A. Ya. Kiruta and A. Yu. Shevyakov on excessive inequality. The recommendations proposed by the authors to reduce excessive inequality in Russia represent the practical significance. The study shows that the EU countries, which are characterized by smooth income distribution, are extremely unequal in wealth distribution. The Russian economy has excessive levels of inequality in terms of both income and wealth. At the same time, there is a polarization of Russian society and a concentration of income in the hands of the upper percipient. The Gini coefficient, the Kaitz index, and the ratio of median and minimum wages demonstrate the extreme degree of inequality in income distribution among Russians. The research investigates the losses from existing levels of inequality in the EU countries and Russia through changes in human development indices. The authors conclude that socio-economic policy aimed at reducing excessive inequality in Russia should be based on the principle of social federalism. Russia needs a comprehensive strategy to combat social stratification and a consistent policy aimed at the formation of a full-fledged middle class. The authors consider it necessary to introduce in Russia a non-taxable minimum income tax, a progressive scale of gift and inheritance taxes, and the introduction of a new wealth tax.

Poverty and inequality in the light of modern approaches to overcoming Russian poverty

The subject of the article is the phenomenon of poverty in light of the problems of excessive economic inequality, which is the main source of formation of Russian poverty, and indicative of institutional analysis which involves a critical revision of social-economic policy of the state instead of the official way of dealing with this problem without considering the reasons of its formation (targeting of poverty). The aim of the work is to update the cause-and-effect factors of poverty formation in Russia, the main of which is a critically high level of inequality with an assessment of the role, nature and causes of its causes. The hypothesis of the study is the thesis that the fight against poverty is ineffective based only on increasing the number and level of social payments and social programs, without taking into account the causes of poverty, thus not affecting any socio-economic processes for its formation. Meanwhile, both the indicative and institutional approach to the analysis of the main causes of poverty shows the dominant role of excessive inequality in the formation of the problem of Russian poverty. In turn, inequality is caused by the inefficiency of the state’s distributive and redistributive policies, caused by the lack of scientific conditionality and systematic political decisions.