High Inequality Research Articles

The Role of The Government to Improve Financial Literacy in Efforts to Prevent The Use of Illegal Online Loans

Financial Technology (Fintech) is a technological innovation developed in the financial sector so that financial transactions can be carried out practically, easily, and effectively. The progress of fintech in the field of money lending services has given rise to many applications/services based on peer-to-peer lending or online loans (pinjol). Based on the National Survey of Financial Literacy and Inclusion conducted by OJK in 2019, the financial literacy index reached 38.03%. However, 21 out of 34 provinces in Indonesia still have financial literacy levels below the average, with the lowest 3 provinces being: 1) East Nusa Tenggara (27.82%); 2) West Papua (28.87%); and 3) Papua (29.13%), besides that there is a very high inequality when compared to the province which has the highest level of financial literacy, namely Jakarta (59.16%). NTT is also included as one of Indonesia’s 3T regions (The Outermost, The Frontmost, and The Lagging). This study aims to examine efforts to increase financial literacy and its relation to online lending trends in East Nusa Tenggara. The study used qualitative methods with data collection sourced from interviews, observations, and literature studies. Based on the research results, OJK has made efforts to improve financial literacy as well as to eradicate illegal online loans, which have been carried out in a planned, measurable, achievement-oriented, sustainable, and collaborative manner, one of which is demonstrated or manifested in the implementation of the Regional Investment Alert Task Force (SWID). However, the implementation of improving financial literacy needs to be continued and improved, especially in terms of the number of activities, socialization of activities that have been implemented, and improving coordination with other stakeholders.
 Keywords: fintech, peer-to-peer lending, online loan, illegal, financial literacy

School and residential segregation in the reproduction of urban segregation: A case study in Buenos Aires

The link between residential and school segregation is widely recognised as a key to explaining urban inequalities. However, most studies have focused on countries of the Global North. This paper attempts to identify to what extent socio-economic residential segregation explains secondary school segregation in Buenos Aires (Argentina). Based on a linear programming method, the study proposes a hypothetical pupil allocation model that takes into account the capacity of schools and is used as an ideal typus to compare with the real socio-economic school composition. Using a ‘decompose method’ of segregation differences to analyse the differences in segregation indices and a local segregation analysis, this paper finds that in a residential context with low segregation but high social inequalities, school segregation is a social mechanism that allows maintaining spaces of differentiation and distancing between groups. In discussion with the idea of a ‘vicious circle of segregation’, this article argues for the potential of a multi-domain approach to segregation, to understand how different domains work in articulated and complex ways to reinforce urban segregation.

A fuzzy-set qualitative comparative analysis of how corruption, education, inequality and trust in parliament affect voter-turnout

This article empirically examines whether corruption, education, inequality, and trust in parliament affect voter turnout in countries that are members of the Organization for Economic Co-operation and Development. Specifically, fuzzy-set Qualitative Comparative Analysis is used to determine whether these factors (individually or in combination) are necessary or sufficient conditions for high or low voter turnout. To date, this method has never been applied to the study of voter turnout and this study attempts to fill this gap. The main conclusion is that corruption harms democracy by lowering voter turnout. The analysis also provides evidence that trust in parliament affects political participation and that the persistence of low educational attainment in a country, together with high inequality, is a sufficient condition for low turnout. Overall, the results suggest the importance of fighting corruption for citizen participation in democracy. They also show that measures to increase turnout should combine improvements in democratic institutions, education, and distributive justice.

Effects of the reaching married adolescents program on modern contraceptive use and intimate partner violence: results of a cluster randomized controlled trial among married adolescent girls and their husbands in Dosso, Niger

BackgroundNiger has the highest rate of adolescent fertility in the world, with early marriage, early childbearing and high gender inequity. This study assesses the impact of Reaching Married Adolescents (RMA), a gender-synchronized social behavioral intervention designed to improve modern contraceptive use and reduce intimate partner violence (IPV) among married adolescent couples in rural Niger.MethodsWe conducted a four-armed cluster-randomized trial in 48 villages across three districts in Dosso region, Niger. Married adolescent girls (ages 13–19) and their husbands were recruited within selected villages. Intervention arms included home visits by gender-matched community health workers (CHWs) (Arm 1), gender-segregated, group discussion sessions (Arm 2), and both approaches (Arm 3). We used multilevel mixed-effects Poisson regression models to assess intervention effects for our primary outcome, current modern contraceptive use, and our secondary outcome, past year IPV.ResultsBaseline and 24-month follow-up data were collected April–June 2016 and April–June 2018. At baseline, 1072 adolescent wives were interviewed (88% participation), with 90% retention at follow-up; 1080 husbands were interviewed (88% participation), with 72% retention at follow-up. Adolescent wives had higher likelihood of modern contraceptive use at follow-up relative to controls in Arm 1 (aIRR 3.65, 95% CI 1.41–8.78) and Arm 3 (aIRR 2.99, 95% CI 1.68–5.32); no Arm 2 effects were observed. Relative to those in the control arm, Arm 2 and Arm 3 participants were significantly less likely to report past year IPV (aIRR 0.40, 95% CI 0.18–0.88 for Arm 2; aIRR 0.46, 95% CI 0.21–1.01 for Arm 3). No Arm 1 effects were observed.ConclusionsThe RMA approach blending home visits by CHWs and gender-segregated group discussion sessions is the optimal format for increasing modern contraceptive use and decreasing IPV among married adolescents in Niger.Trial registration This trial is retrospectively registered with ClinicalTrials.gov, Identifier NCT03226730

Socioeconomic inequalities in cervical precancer screening among women in Ethiopia, Malawi, Rwanda, Tanzania, Zambia and Zimbabwe: analysis of Population-Based HIV Impact Assessment surveys

ObjectivesWe examined age, residence, education and wealth inequalities and their combinations on cervical precancer screening probabilities for women. We hypothesised that inequalities in screening favoured women who were older, lived...

Brazilian Landscape of Hepatocellular Carcinoma.

The incidence of hepatocellular carcinoma (HCC) is expected to increase in the coming years, and strategies to mitigate the burden of this disease are needed in different regions. Geographic variations in epidemiology and risk factors, such as viral hepatitis and metabolic disease, pose challenges in adopting programs for early detection programs and management of patients with HCC. Brazil, like other countries, has high economic and social inequality, with heterogeneous access to health care. Viral hepatitis is the main risk factor but there is growing awareness of fatty liver disease. Risk factor monitoring and screening programs are unmet priorities because patients are often diagnosed at later stages. Advances in the management of patients with HCC have been made in recent years, including new tools for selecting patients for liver transplantation, sophisticated surgical techniques, and new systemic agents. High-volume academic centers often achieve favorable results through the adoption and application of established treatments, but this is not a reality in most regions of Brazil, because of disparities in wealth and resources. As HCC management requires a coordinated and multidisciplinary team, the role of local referral centers in decentralizing access to treatments and promoting health education in different regions should be encouraged and supported.

The Variation Between Subjective and Objective Class Positions in South Africa. The Distance Between Perception and Reality

ABSTRACT: The study is an exploratory attempt to assess the relationship between individuals' objective class position and subjective social positions in the South African hierarchy. While objective class dynamics have received much attention in South Africa, less is known about the subjective social position individuals place themselves. The study aims to make use of the International Social Survey Program (ISSP) dataset and assess the relationship between objective and subjective class positions in South Africa. The results show considerable variation between objective and subjective class positions, with a strong middling tendency among all objective class groups in South Africa. The study also shows that this middling tendency has increased in the last decade in South Africa, predominantly due to individuals overestimating their social positions. With a large share of South Africans living close or below the poverty line, there is a clear biasedness of South Africans placing themselves in the middle of society, deviating from their lower objective position. The study further measures the variation between objective and subjective social positions to create a novel class scheme of inflated, deflated, and concordant class perceptions. These biased perceptions are then compared to socio-economic characteristics, showing that gender, race, and education are closely related to bias perceptions in South Africa. Furthermore, the increasing nature of high inequality and social unrest events in South Africa prompts the study also to assess the different social and political attitudes by varying objective and subjective class schemes. The results show that among the subjective class identification, individuals in higher perceived class positions tend to be less angered towards inequality, have lower redistribution preferences, and perceive a weaker conflict between the rich and the poor. These results confirm the impact perceived social positions and biased perceptions could have on social and political attitudes in South Africa. Attitudes that have been considered relevant in voting behavior and social policy formulation models. The results of the paper provides some vital information for policy makers on the dynamics behind subjective class and bias perceptions in South Africa.

Inequality aversion and government health expenditure

This paper explores a behavioural mechanism through which income inequality may be associated with population health. We consider a model with heterogeneous agents in which agents' preferences are characterized by income inequality aversion. Our analysis shows that spending on health-producing goods is inversely related to the agents’ degree of inequality aversion. A Veblenesque mechanism drives this relation: inequality averse poor agents wish to enjoy consumption levels closer to the average consumption levels in the economy but can only do so by reducing their expenditures on health. This leads to adverse outcomes for individuals and adverse political economy implications for health. In the political economy context, agents characterized by high inequality aversion vote for lower levels of government health spending. To specifically test this mechanism, we construct empirical measures of inequality aversion. Then, using these measures for a panel of 147 countries spanning 2008–2019, we find a significant negative impact of inequality aversion on allocations of public spending for healthcare. These results remain robust to different model specifications.

Peran Mediasi Pertumbuhan Ekonomi pada Pengaruh Desentralisasi Fiskal terhadap Ketimpangan Pendapatan Daerah

This study aims to examine and prove the effect of fiscal decentralization on regional income inequality with economic growth as a mediating variable. This study is quantitative. The research population is provincial governments in Indonesia in 2017-2021. Sample selection using purposive sampling techniques. The research sample amounted to 15 provincial governments. Data analysis technique in this study using Structural Equation Modeling Partial Least Square (SEM-PLS) with WarpPLS 7.0 software. The results showed that fiscal decentralization has no effect on regional income inequality. Fiscal decentralization affects economic growth. Economic growth affects regional income inequality. Fiscal decentralization with economic growth as a mediating variable affects regional income inequality. The implication of this research is fiscal decentralization that has been running needs to be optimized. This is to realize equitable distribution of regional income and increase economic growth. In addition, the government needs to pay special attention to areas that have high economic growth rates. However, it is followed by a high income inequality.

Inequality, Social Context, and Income Bias in Voting: Evidence from South Korea

Abstract The effect of inequality on income bias in voting is a contentious topic in the literature. In this article, we explore the effect of inequality in terms of social context. We argue that perceptions of inequality and regional economic inequality provide a social context in which citizens form relative class identity and shape their political behavior. We analyze individual-level surveys and administrative district-level data consisting of 252 South Korean administrative units in 2012–2020. The findings of the individual-level analysis suggest that perceptions of high inequality boost voter turnout, and that this effect is stronger among citizens with low incomes. As lower-income earners recognize themselves as being at a greater distance from the higher-income group, it activates a grievance effect and increases their incentive to participate in voting. The results from the district-level analysis suggest that the participation of lower-income individuals is more likely to increase in response to local inequality than the participation levels of their higher-income neighbors. Our findings suggest that the mass public utilizes their perceptions of inequality and the degree of intra-regional economic inequality as a heuristic to decide whether to turnout to vote, and that this occurs among both the rich and the poor.

Women's Attitudes Towards Abortion in Response to the Zika and COVID-19 Outbreaks in Brazil.

Abortion attitudes are influenced by people's socioeconomic and demographic circumstances and can be volatile during times of crisis. Brazil is an interesting case for examining abortion attitudes because of its strict abortion policies, changing religious landscape, high income inequality, and extreme uncertainty generated by the back-to-back Zika and COVID-19 crises. This study seeks to assess Brazilian women's attitudes toward abortion and whether religion and income explain these attitudes in the context of novel infectious disease epidemics. We used data from a population-based sample of 3996 women ages 18-34 in Pernambuco, Brazil, collected during the onset of the COVID-19 pandemic (May-September 2020). We conducted paired t-tests and multivariate-adjusted logistic regression models with adjusted Odds Ratios (aORs) and 95% CIs to assess differences in support for abortion in the case of fetal congenital Zika syndrome (CZS), maternal Zika infection during pregnancy, and maternal COVID-19 infection during pregnancy. Significantly more women support the right to abortion in the case of fetal CZS (50%) than in the case of maternal Zika infection (40%) and maternal COVID-19 infection (31%). Support for abortion varies by income and religion. Controlling for other demographic characteristics, high-income women have higher odds of supporting abortion in the case of fetal CZS (aOR = 1.92; 95% CI: 1.25-2.94) and maternal Zika infection (aOR = 2.07; 95% CI: 1.33-3.21) than low-income women. Evangelical women have lower odds of supporting abortion in the case of maternal Zika infection (aOR = 0.65; 95% CI: 0.45-0.93) and marginally lower odds of supporting the right to abortion in the case of maternal COVID-19 infection (aOR = 0.69; 95% CI: 0.47-1.00) than women of other religious affiliations. With increasingly conservative religious groups gaining size in Brazil, we expect to see increasing abortion restrictions. However, this research finds that a sizable portion of women across all incomes and religious affiliations support abortion, particularly in the case of fetal anomalies associated with Zika.

Individualism and tax progressivity

This article proposes a novel theoretical model that factors in individualism culture for explaining tax progressivity. It shows that an increase in the level of individualism reduces optimal tax progressivity, regardless of whether a social planner or voters choose income tax schedule. Moreover, an increase in the pre-tax income inequality raises tax progressivity optimal for the social planner or voters, for any given level of individualism. These findings from introducing individualism culture for tax progressivity are quite original. This article makes an important contribution of providing an explanation for the puzzling fact that taxes of some countries with low inequality of pre-tax income are more progressive than those of other with high inequality. This article implies that a country with low pre-tax income inequality can have highly progressive tax if the country’s culture features fairly low level of individualism. Empirical analysis with panel data of 87 countries finds evidence supportive of these theoretical findings.

Future population exposure to heatwaves in 83 global megacities

Global warming leads to more frequent and intense heatwaves, putting urban populations at greater risk. Previous related studies considered only surface air temperature or one or two Shared Socioeconomic Pathways (SSPs) and were limited to specific regions. Moreover, no research focused on heatwave exposure in highly-populated global megacities facing severe threats. This study is the first to project future population exposure to heatwaves in 83 global megacities by 2100 using fine-resolution data, suitable indices reflecting human comfort in heatwaves by incorporating temperature and humidity, and a future population exposure projection and analysis framework. The results show that (1) the global frequency of extreme heatwave events and average change rate in each megacity sequentially increase from SSP1-2.6 to SSP5-8.5, and the change rate is generally larger in megacities in the Southern Hemisphere; (2) the increases in heatwave exposure are greatest under SSP370, and the change rates are generally larger for megacities in Southern Asia; (3) there is a high degree of inequality (Gini of 0.6 to 0.63) in future heatwave exposure globally, with the highest inequality under SSP5-8.5 and the lowest under SSP3-7.0; (4) the average exposure, increase rate, and change are highest in low-income megacities and lowest in high-income megacities. The distribution of exposure is the most balanced in middle-income megacities and the least balanced in high-income megacities; and (5) population growth contributes more to the change in exposure than total warming in high-income megacities under SSP1-2.6, and total urban warming contributes much more than population growth in all other cases. Every effort should be made to avoid the SSP3-7.0 scenario and pursue sustainable and rational urban economic development. Mumbai, Manila, Kolkata, and Jakarta warrant particular attention due to their rapid exposure growth. Additionally, policymakers and urban planners must focus on improving sustainable development planning for megacities in southern Asia and low-income megacities.

Ambivalent Sexism in the State of Qatar

Abstract This article examines public attitudes toward ambivalent sexism in the State of Qatar, which has taken considerable initiatives to prioritize women’s empowerment strategies and promote equality between men and women. It investigates whether these equality initiatives are reflected in nationals’ attitudes toward women by measuring scores on the Ambivalent Sexism Inventory (ASI). While prior research has focused almost exclusively on the role of social implications, much less has been explored regarding the public sentiments underlying traditional gender roles and patriarchal attitudes in Qatari society. This study uses original survey data from a national sample of a 2019 survey. The results of the novel analytical descriptive approach used here suggest that individuals in Qatar are highly sexist on average, indicating that as a nation, Qatar scores low on gender equality measures. The analysis also reveals that benevolent sexism is evaluated more positively than hostile sexism, although its underlying dimensions correlate with patriarchal views and gender stereotyping in the context of high gender inequality. These findings are especially important considering the ever-emerging dynamics of gender roles and the increased efforts being gradually expended for improved gender parity.

Spatial Income Inequality, Convergence, and Regional Development in a Lower Middle‐Income Country: Satellite Evidence from the Philippines

This paper examines spatial income inequality and convergence in the Philippines—a lower middle‐income country with historically high inequality—and its course over the process of economic development. Combining higher quality nighttime lights (NTLs) with gridded population data, I construct subnational measures of spatial inequality for the 17 administrative regions in the country in the period 2000–2020. Using this unique dataset, I first document the tremendous improvement in income disparities over the last two decades. Income per capita across provinces has converged rapidly, and income dispersion within administrative regions has narrowed markedly. Then, I uncover a U‐shaped relationship between spatial inequality and economic development, which is robust; across alternative measures of inequality; to the outlier effects of highly urbanized cities; across parametric and semiparametric specifications; to business‐cycle effects; and to persistence of spatial inequality. Finally, I confirm that structural transformation acts as a transmission channel of this U‐shaped link.

Recommendations for developing effective and safe paediatric and congenital heart disease services in low-income and middle-income countries: a public health framework

The global burden of paediatric and congenital heart disease (PCHD) is substantial. We propose a novel public health framework with recommendations for developing effective and safe PCHD services in low-income...

Income Inequality and Socioeconomic Disparities in Alcohol Use Among Eastern European Adolescents: A Multilevel Analysis

PurposeIn this study, we tested the “golden youth” hypothesis, which suggests that in Eastern Europe, affluent adolescents are at an increased risk of alcohol use. Also, we hypothesized that the relationship between high socioeconomic position (SEP) and more alcohol use is stronger in countries with wider income inequality. MethodsIn total, 50,421 adolescents aged 13–15 years were included from 16 Eastern European countries participating in the 2013–2014 Health Behaviour in School-aged Children survey. Multilevel logistic regression analyses were performed. ResultsAffluent adolescents had greater odds of weekly alcohol use (OR = 1.32, 95% CI = 1.23–1.41) and binge drinking (OR = 1.24, 95% CI = 1.16–1.32) than their peers from low-SEP families. However, no significant difference was observed between middle- and low-SEP adolescents. In countries with wider income inequality, the relationship between high family-SEP and weekly alcohol use (p interaction = .006), as well as high family-SEP and binge drinking (p interaction = .007), was stronger compared to countries with lower income inequality. DiscussionPossibly, influenced by the lifestyle choices of their parents, and using alcohol as a status symbol to establish and maintain friendly relationships with peers, Eastern European adolescents from affluent families, particularly in the most unequal settings, are at increased risk of alcohol use, confirming the golden youth hypothesis. Insecure self-image and perceived threat to their high status might be explanatory factors. More research is needed to identify the precise individual and family characteristics responsible for increased alcohol use among wealthy adolescents, especially in Eastern European countries with high income inequality.

A Competitiveness-Based Theoretical Framework on the Psychology of Income Inequality

Social scientists have begun to extensively study how living in contexts with high income inequality affects psychological outcomes. Herein we overview a conceptual framework that integrates, organizes, and extends these complex (and sometimes contradictory) findings. First, we describe studies showing that income inequality breeds an ethos of competitiveness. Second, we argue that the inequality-competitiveness relation explains why income inequality (a) promotes status-focused behaviors aimed at lifting oneself up and/or bringing others down, (b) harms social relations when they pose an obstacle to one’s economic advancement, (c) exerts opposing effects on well-being via avoidance motivation (focusing on the risk of economic failure) and approach motivation (focusing on the prospect of economic success), and (d) represents a threat to those who perceive they do not have sufficient individual/contextual resources to cope with the demands of competition but a challenge to those with sufficient resources. We also discuss limitations and future directions for research.

The (negative) effects of inequality on Social Capital

AbstractInequality is perhaps one of the most challenging issues of our time. Empirical literature, using observational data, indicates that higher inequality is associated with lower social capital. Oftentimes, however, the causal effects of inequality are difficult to establish based on survey and empirical observations. To this end, we review a large body of experimental literature and assess the causal effects of inequality on experimental proxies for social capital. We find compelling evidence that inequality undermines trust, discourages cooperation, and encourages unethical behaviors. The overall effect on generosity is, however, less clear.

Higher inequality in Latin America: a collateral effect of the pandemic

ABSTRACT This study explores the evolution of inequality in Latin America during the COVID-19 pandemic by using primary data from household and employment surveys collected in 2020. First, we discuss the trends in inequality in the region from 1992 to 2020. Next, we estimate regression models to examine how the changes in demographics and education levels might be correlated with changes in income distribution. Finally, we use a panel regression model with fixed effects for 16 countries in the region to identify how the socioeconomic context might help explain the changes in income inequality. The empirical findings suggest that inequality increased by a statistically significant 2% between 2019 and 2020. We obtained significantly heterogeneous results when disaggregating by gender, urban/rural location, and sector of economic activity. Remittances had a modest effect, while government transfers helped to prevent more significant disparities in half the countries studied. Our estimations show that the decline in employment levels – due to the economic contraction caused by COVID-19— is associated with increases in income inequality that might gradually diminish with the recovery.