High Inequality Research Articles

Why do we never have enough time? Economic inequality fuels the perception of time poverty by aggravating status anxiety.

People in many societies report that they do not have enough time. What makes people feel so rushed? We propose that economic inequality leads to perceived time poverty by increasing status anxiety. Five studies examined this line of reasoning. Study 1 (N = 230) found a positive correlation between economic inequality and perceived time poverty. Study 2 (N = 194) manipulated economic inequality to test the causal link between economic inequality and perceived time poverty. The results showed that people perceived more time poverty in the high (vs. low) economic inequality condition. Study 3 (N = 381) supported the mediating role of status anxiety in the relationship between economic inequality and perceived time poverty using a questionnaire survey. Study 4 (pre-registered; N = 283) manipulated economic inequality in an ecological valid way and yielded further support for the hypotheses. In pre-registered Study 5 (N = 233), a blockage manipulation design was employed to test the mediating effect of status anxiety as a function of economic inequality, which provided causal evidence for the proposed mediator. Our findings suggest that economic inequality serves as a structural societal factor that fuels people's perception of time poverty.

Dishonesty When the Game Is Unfair

Abstract: Although the link between economic inequality and dishonest behavior is well-established in the literature, their causal relation is still unclear. Here we investigate the causal link between economic inequality and dishonest behavior in a simulated society with high or low economic inequality, while holding middle-class status of the participants constant across conditions. Study 1 ( N = 479) focuses on tax evasion, showing that high (vs. low) economic inequality increases the tendency to not declare taxable income. Study 2 ( N = 228) analyzes cheating behavior, showing that participants under high (vs. low) economic inequality cheat more to increase their income. Together, the studies provide experimental evidence that economic inequality plays a causal role in dishonest behaviors, such as tax evasion and cheating.

Decomposing income-related inequality in health-related quality of life in mainland China: a national cross-sectional study

IntroductionHealth equity is an important indicator measuring social development and solidarity. However, there is a paucity in nationwide studies into the inequity in health-related quality of life (HRQoL) in mainland...

Unequal selves in the classroom: Nature, origins, and consequences of socioeconomic disparities in children's self-views.

Children from low socioeconomic status (SES) backgrounds often have more negative self-views than their peers. How are these self-views shaped by teacher-student interactions in the classroom, and what are the consequences of these self-views for achievement inequality? We present a developmental framework addressing these questions by bridging insights from the psychological, educational, and sociological literatures. We show that children from low-SES backgrounds perceive themselves as less intelligent, less able to grow their intelligence, less deserving, and less worthy, independent of their actual abilities and achievements. We demonstrate how negative intellectual stereotypes-expressed through daily interactions with teachers in classrooms, such as teachers' expectations, feedback, and attention-undercut the self-views of children from low-SES backgrounds. We also show how this process can be exacerbated by institutional and cultural values reflecting a belief in meritocracy (e.g., schools that encourage competition, emphasize raw ability, and attribute achievement inequality to intrinsic factors), which are common in countries with high income inequality and rigid between-school tracking. The ensuing more negative self-views introduce psychological barriers that undermine the academic achievement of children from low-SES backgrounds, thereby reinforcing achievement inequality. This represents an enormous loss of potential and perpetuates harm into adulthood. Socioeconomic disparities in self-views can emerge early in life and widen with age, underlining the need for developmental research and timely intervention. We discuss implications for studying the nature, origins, and consequences of socioeconomic disparities in self-views, and for designing interventions to reduce achievement inequality. (PsycInfo Database Record (c) 2023 APA, all rights reserved).

Labor market distortions in major emerging-market economies: Some CGE estimates

Purpose ― In the present study, the effects of labor market distortions on economic structure and efficiency are estimated for seven emerging-market countries: Brazil, China, Indonesia, India, Mexico, Russia, and Turkey. Methods ― The estimates are based on a computable equilibrium (CGE) model that allows simulation of the inter-industry links of 56 industries plus a sector representing the rest of the world from data collected in the World Input-Output Database (Release 2016) for the period 2000-2014. Findings ― The results show that wage differentials appear to be distortionary, especially in the cases of countries with high wage-income inequality. Moreover, it seems that labor market distortions in emerging-market countries are subject to the rural-urban dichotomy and urban labor-market imperfections. Finally, the results show that the removal of wage differentials affects the terms of trade, which are improved in most but not all cases.Implication ― The conclusions of the present study have policy implications. In countries where the rural-urban dichotomy is the main distortion in labor markets, increasing urbanization can stimulate efficiency; when this is not the case, further reform of urban labor markets is needed. However, it cannot be ruled out in advance that a policy aimed at enhancing labor mobility may have a negative impact on the terms of trade. Originality ― The estimation method used in the present study presents certain advances over others found in the literature, as it becomes possible to estimate the effects of labor-market distortions while considering the interdependencies between different sectors, as well as to plausibly estimate the effects on trade. The present study also uses a large quantity of data, which is expected to add robustness to the study’s conclusion.

Institutional development as a tool to facilitate economic access for South Africa’s SMEs: the case of the Development Bank of Southern Africa

The lack of economic access is one of the main challenges facing small and medium enterprises (SMEs). It contributes to the elevated levels of unemployment and slows the resolution of high inequality and poverty in South Africa. Economic access is the ability of historically disadvantaged individuals and entities to participate in the economy. This study aimed to explore how institutional development can support economic access for SMEs. The study explored how setting up new or improving existing socio-economic structures or legal entities could support economic access for SMEs. The support received by SMEs in South Africa from three institutions, the Independent Power Producer Office (IPPO), the Infrastructure Delivery Division (IDD) and the Development Laboratories (DLabs), set up by the Development Bank of Southern Africa (DBSA) was assessed. Quantitative data from the DBSA and IPPO, as well as qualitative views from informants, were used to assess the economic access of SMEs. The study shows that the IPPO, IDD and DLabs added value by achieving the objectives for which they were created. Furthermore, the results show that institutional development supports economic access for SMEs, and that this support is scalable. The study showed that institutional development could be a tool to support SMEs to participate in the economy. This study contributes to the body of knowledge on ways to support SMEs to grow and contribute to reducing unemployment, inequality and poverty.

Assessing the macro-scale patterns of urban tree canopy cover in Brazil using high-resolution remote sensing images

This study creates a 0.5 m resolution urban tree canopy (UTC) cover dataset using high-resolution remote sensing images based on the deep learning method to clarify urban tree-cover characteristics in Brazilian cities. The results revealed that the UTC cover of Brazilian cities is spatially heterogeneous, ranging from 5% to 34%. There was a difference in UTC coverage between the old and new urban areas, with the average largest difference near 5%. More than 76% urban population exposure to UTC coverage of 0∼0.2. Most cities have a relatively high inequality in human exposure to urban tree-covered spaces, especially in northeastern and southeastern Brazil. Results from the geographical detector models show climatic factors play a major role in determining the UTC cover patterns in Brazilian cities, followed by socioeconomic, geographical, soil, and urbanization factors. This study suggests the Brazilian government pay more attention to greening renovation projects in old urban areas and formulate effective urban tree irrigation policies for cities with limited autumn and winter rainfall. The study also suggests follow-up research on UTC cover patterns that consider the effects of race, urban history, city structure, land use, and local government policy factors to further support the goals of sustainable development in Brazilian cities.

Secondary data analysis of the distribution and determinants of maternal and child health outcomes across Kenya’s 47 counties

Introduction There are 47 semi-autonomous counties in Kenya that are in-charge of financing and delivery of healthcare. Although reports exist that demonstrate how the counties differ in socioeconomic status, disease burden, and health outcomes, such reports often fail to show where the greatest inequities lie, and what actually drives them. This analysis is meant to guide better targeting of resources to achieve a greater impact on maternal and child health outcomes. Methods Secondary data sources were analyzed to determine the variations in inequities in Kenyan counties. The inequities and their distribution in the 47 counties were assessed using a Lorenz curve and principal component analysis (PCA). A regression analysis evaluated the relationship between key outcomes- maternal mortality, under-five mortality, full immunization coverage (DPT3), the incidence of diarrhea, and under-five stunting, as the dependent variables, and years of education for women 15 – 49 years, county health financing per capita, public insurance coverage, population per facility, public nurses/100000, doctors/100000 people, poverty headcount rate, and gender inequality index (GII), as the independent variables. Findings Vaccine coverage (Gini Index 0.063) is the most equitably distributed outcome in the country, followed by under-five mortality (GI=0.124). Maternal mortality has the highest inequity (GI=0.381), followed by the distribution of public sector nurses (GI=0.317). County government funding of health per capita also shows wide variations between counties (GI= 0.230) suggesting different levels of expenditure and prioritization. Vaccine coverage and U-5 mortality are the most evenly distributed across the counties. The key drivers of maternal mortality are education of women of reproductive age (p= 0.001), gender inequality (p=0.002), and congestion at health facilities (0.001). Conclusion Promising approaches and interventions to reduce inequity do exist, which includes UHC whose focus should be on reducing geographical, economic, sociocultural, and gender barriers to healthcare.

Social preferences, support for redistribution, and attitudes towards vulnerable groups

In this work, I explore the explanatory power of experimentally-elicited social preferences over self-reported support for redistribution. Social preferences are obtained by means of a simplified dictator game embedded in an online survey that also includes a questionnaire on preferences for redistribution, beliefs, inequality perceptions, and ideological positioning. I find that social preferences covary strongly with self-reported support for increased taxation. Besides, more generous social preference types are more likely to have favourable views towards specific welfare beneficiaries, especially those usually regarded as less deserving, such as migrants, the unemployed, or the poor. Some elements that correlate negatively with preferences for redistribution are being older than 65, having a right-wing ideology, believing that personal effort is the main driver of one’s economic position, and distrusting others; while being a parent or perceiving high inequality have the opposite effect. Social preferences help thus further understand public support for redistribution and the political feasibility of redistributive policies.

How does economic inequality shape conspiracy theories? Empirical evidence from China.

Conspiracy theories tend to be prevalent, particularly in societies with high economic inequality. However, few studies have examined the relationship between economic inequality and belief in conspiracy theories. We propose that economic inequality leads people to believe conspiracy theories about economically advantaged groups (i.e., upwards conspiracy theories) and that moral evaluations of those groups mediate this relationship. Study 1 (N = 300) found support for these ideas in a survey among Chinese residents. Study 2 (N = 160) manipulated participants' perceptions of economic inequality in a virtual society. The manipulation shaped moral evaluations of economically advantaged groups, and conspiracy beliefs, in the predicted manner. In Study 3 (N = 191) and Study 4 (N = 210), we experimentally manipulated participants' perceptions of economic inequality in real Chinese society and replicated the results of Study 2. In addition, in Study 4, we find that economic inequality predicts belief in conspiracy theories about economically disadvantaged groups (i.e., downward conspiracy theories), which was mediated by anomie. We conclude that perceived economic inequality predicts conspiracy theories about economically advantaged groups and that moral evaluations account for this effect. Also, upward and downward conspiracy theory beliefs are associated with different psychological processes.

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.

Assessment of utilisation of government programmes and services by pregnant women in India.

Since the implementation of various maternal health programs, Maternal Mortality Ratio (MMR) has significantly declined in India through improvements in maternal health services. However, inequality persists at the regional and socio-economic levels. In light of this, the present study aims to assess the existing regional disparities in utilising various government initiatives for safe motherhood in India. National-level datasets such as National Family and Health Surveys (NFHS-3 (2005-06); NFHS-4 (2015-16) and NFHS-5(2019-21); Health Management Information System (HMIS), 2019-20; Sample Registrar System (SRS), 2001-2018) were used in the study. In addition, composite Index and inequality measures (Range, Ratio, and Gini) were calculated to examine inequality. At the same time, the Pearson correlation was used to investigate the correlation between various components of maternal health services and Maternal Mortality Rate (MMR). The composite index score (0.65) reflects that India is still far behind the targets of the utilisation of maternal health care services. Within the utilisation of services, the Gini coefficient reveals that the least inequality was recorded in skilled birth assistance deliveries (0.03) and institutional deliveries (0.04). In contrast, the highest inequality was recorded in receiving Iron and Folic Acid (IFA) Tablets for 100 days (0.19) and four Antenatal Care (ANC) visits (0.13) among selected states. Based on the composite score for maternal health utilisation, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and Delhi were amongst the best performers, whereas Bihar, Jharkhand, Uttar Pradesh, and Assam were amongst the worst performers. This indicates that the government's single-minded focus on enhancing institutional deliveries and skilled health-assisted deliveries has detracted from other essential interventions related to maternal health. Therefore, the states with the utilisation of maternal services need to initiate immediate action to increase the ANC and Post-natal Care (PNC utilisation with more attention towards better implementation of existing ANC programmes by the government.

James Crotty’s Advice to Koreans

The Korean economy achieved rapid economic growth with equal income distribution for over three decades until the late 1990s when, in 1997, a financial crisis occurred. Mainstream economists and the International Monetary Fund (IMF) attributed this crisis to the problem of East Asian crony capitalism. The Korean government accepted this perspective and implemented neoliberal economic restructuring and financial opening after the crisis. However, James Crotty argued that the crisis in Korea was a result of haphazard financial opening and the withdrawal of state intervention. Most importantly, he extensively criticized the post-crisis economic reform in Korea imposed by the IMF. He believed that it would lead to lower economic growth and higher inequality, and he advised Koreans to oppose it. This article examines Crotty’s argument about the Korean economy and how the latter changed in the 21st century. JEL classification: F34, H12, O19, O53

Inequalities in adequate maternal healthcare opportunities: evidence from Bangladesh Demographic and Health Survey 2017–2018

ObjectivesThis study investigated the inequalities in access to maternal healthcare services in Bangladesh.Design and settingThis study used cross-sectional data from the nationally representative Bangladesh Demographic and Health Survey conducted in...

Exploring the role of financial inclusion in poverty reduction: An empirical study

This study investigates the impact of financial inclusion on poverty, focusing on the role of unequal access to finance and various inequalities in developing countries during the 2004–2018 period. Women and the poor in developing countries still face discrimination in accessing financial services. Similarly, a higher income, wealth, and gender inequality, along with low institutional quality and educational attainment, may obstruct financial inclusion from reaching its target groups and influence poverty in developing countries. This study applies two-stage fixed-effect methods and conditional analysis to examine these issues. The results reveal that financial inclusion is more effective in poverty reduction in countries where women and the poor have higher access to formal finance. Though financial inclusion significantly affects poverty in countries with high inequalities, high income, and gender inequality diminish its impact. The study also investigates how institutional quality and educational attainment affect financial inclusion's impact on poverty and finds that these factors improve the effect of financial inclusion. The study prescribes that policymakers aim to make financial services accessible to disadvantaged groups. It also recommends that developing countries try to reduce inequalities, improve institutional quality, and encourage school enrollment along with financial inclusion initiatives to reduce poverty substantially.

Economic inequality reduces sense of control and increases the acceptability of self-interested unethical behavior.

Societies worldwide are witnessing higher levels of economic inequality. While prior work has examined ethical judgments toward inequality itself (e.g., "is inequality unethical?"), less is known about how inequality shapes judgments of unethical behavior (e.g., "is unethical behavior more acceptable?"). In two correlational studies, we find that higher objective (Study 1; n = 127,953) and subjective (Study 2; n = 806) inequality is associated with greater acceptability of self-interested unethical behavior. In Studies 3a-6b (total N = 4,851; preregistered), we manipulated perceived inequality and test several mediating pathways. Results point toward the importance of sense of control as a mechanism: Under conditions of high inequality, individuals report a lower sense of control, which increases the acceptability of self-interested unethical behaviors. As a supplement, we also explore associations regarding why high inequality reduces sense of control (reduced perceptions of social mobility) and why sense of control is associated with greater acceptability of unethical behavior (greater situational attributions). Overall, our results suggest inequality changes ethical standards by reducing one's sense of control, providing evidence for another pathway through which inequality harms societies. (PsycInfo Database Record (c) 2023 APA, all rights reserved).

Spatiotemporal change in socioeconomic inequality in hygienic menstrual product use among adolescent girls in India during 2015–2019

BackgroundThe use of hygienic products, such as sanitary napkins, tampons, and menstrual cups, to absorb menstrual blood is vital for the health and well-being of adolescent girls in India. However, the degree of inequity in the use of such products among this subpopulation remains inadequately explored. To fill this critical knowledge gap, this study aims to investigate the spatiotemporal dynamics of hygienic product use among adolescent girls in India from 2015 to 2020.MethodsIn this cross-sectional study, we analyzed data from 117,749 to 114,839 adolescent girls aged 15–19, obtained from two consecutive rounds of the National Family Health Survey (NFHS) conducted in India during 2015-16 and 2019-21. Our approach involved utilizing Erreygers’ Concentration Index (ECI) and Concentration Curve to quantitatively assess and visually represent socioeconomic inequality in hygienic product usage. Additionally, we investigated the spatiotemporal variation in this inequality over the study period and decomposed the ECI to identify the key contributing factors.ResultsThe findings reveal that hygienic product usage among adolescent girls in India has increased by 13 percentage points (PP), from 37% in 2015-16 to 50% in 2019-21. This increase is also visible across all household wealth quintiles. However, the bottom quintiles experienced a greater rise (+ 15 to 16 PP) than the top quintile (+ 8 PP). During the study period, the ECI reduced marginally, from 0.48 in 2015-16 to 0.43 in 2019-21. However, the extent of this reduction varied across different states. The greatest reduction in ECI was recorded in Punjab (-0.23 points), Telangana (-0.16 points), and West Bengal (-0.14 points). In contrast, there were a number of states with high socioeconomic inequality (ECI > 0.30) in 2015-16, where inequality reduction was minimal (< 0.05 points) over the study period. This included more developed states of Kerala, Karnataka, Maharashtra and Gujarat and relatively less developed states of Odisha, Jharkhand, Chhattisgarh, Uttar Pradesh, and Assam. Some states, such as Bihar and Madhya Pradesh, recorded an increase in socioeconomic inequality over the study period, with ECI rising to 0.31 and 0.46 (highest in the country) in 2019-21. The decomposition analysis revealed that the inequality in using hygienic products was primarily explained by place of residence, exposure to mass-media, education, and region of residence.ConclusionsThe findings suggest the need for targeted policies to reduce existing socioeconomic inequality in the usage of hygienic products among adolescent girls in India. Specifically, interventions should target regions with low use of hygienic products, economically disadvantaged groups, and poor and vulnerable populations. State-specific policies and programs are also necessary to address the disparities in socioeconomic inequality. Additionally, efforts to reduce inequality should address the underlying factors contributing to inequality.

On the Dynamic Relationship between Household Debt and Income Inequality in South Africa

This paper analyses the relationship between household debt and income inequality in South Africa for the period 1980–2021. We use two measures of inequality and estimate a vector error correction model (VECM) which includes household debt, inequality, and other macroeconomic variables. To test the robustness of our results, single equation models are used, which estimate household debt as a function of inequality and macroeconomic factors. We employ two measures of inequality, namely Gini coefficient and ratio of top and bottom income earners’ proportion of income. Furthermore, we use both household debt as a percentage of disposable income and household debt service costs as dependent variables in single equation regressions. The study finds a negative and significant relationship between household debt and income inequality in the long run, which contradicts the Rajan hypothesis in the South African case. Rather, we find that inequality in South Africa creates a bias in debt allocation towards high-income earners, whose incomes can easily absorb the extra debt (reduced ratio of debt to disposable income). There are therefore no socio-equity considerations in South African credit markets. We find growth in gross domestic product (GDP) per capita also has a moderating effect on the relationship between household debt and income inequality. High GDP per capita growth in the presence of high inequality reduces the impact of inequality on household debt and vice-versa. All other control variables take expected signs. These results are robust to changes in the inequality or household debt measures.

Individual funded pension accounts and the World Bank: evolving views

Introduction: This paper sets out a brief history of World Bank involvement in pensions. Section 1 considers the period 1980–2000, and in particular a major pension reform in Chile in 1981 and the World Bank’s support for that approach, discussing the reforms and how well, or otherwise, they performed. Section 2 explains increasing diversity of views within the World Bank, and section 3 the more balanced view of recent years.Objective: The main goal of the presented article is to provide a comprehensive analysis of the evolution and controversies surrounding individual funded pension accounts, with a primary focus on the Chilean model and its global impact. The article aims to critically examine the historical context, the World Bank’s role, internal and external debates, and recent developments in pension policy. Ultimately, it seeks to foster a more balanced understanding of pension systems, acknowledging their complexities, objectives beyond consumption smoothing, and the need for responsive policy adjustments in the face of real-world challenges.Materials and methods: The analysis is based on historical and policy documents, literature review, comparative analysis, qualitative assessments, and policy evaluation.Results: The main conclusion of the article is that the widespread adoption of individual funded pension accounts, as championed by the World Bank and initially implemented in Chile, has faced significant challenges and limitations. While these accounts were promoted as a panacea for pension reform challenges, the article argues that they have not lived up to their promises. Issues such as incomplete coverage, inadequate pensions, high administrative charges, gender inequality, and fiscal transition costs have raised concerns. The article also highlights a shift in recent years toward a more balanced and comprehensive approach to pension policy, emphasizing the importance of addressing poverty relief and broader social protection objectives.

Transit Oriented Development (TOD) in São Paulo: spatial analysis shows advances, but not sufficient social inclusion

ABSTRACT Large contemporary cities demand complex solutions that integrate and territorialize different public policies based on evidence data. In São Paulo, Transit Oriented Development (TOD) has been used as an integrated urban and transport planning tool to promote a more sustainable and inclusive development of the city since the last City Master Plan (2014), approved after much resistance from the sector real estate. After almost a decade of implementation, spatial research reveals a desirable urban density, with a significant increase in the number of real estate projects built and a reduction in the size of housing units in these areas. However, low-income households have not been sufficiently included in the growth of TOD areas due to rising property prices. We argue that in cities with high social inequality, such as São Paulo, TOD guidelines should be adjusted based on specific socio-spatial and legal contexts to promote more inclusive and sustainable development.