Improve Income Distribution Research Articles

Has the Digital Economy Enhanced the Income Distribution Effect Among Industries? Evidence from China

A powerful correlation exists among the advancement of the economy of digital, sustainable economic advancement, and income distribution. The advancement of the digital economy provides a significant motivating factor for sustainable economic development, while sustainable economic development provides a strong guarantee for income distribution, and the improvement of income distribution is also conducive to sustainable economic development. What is the connection between the digital economy and income distribution? This is the focus of this paper and also an important way to clarify the association between the advancement of the digital economy, sustainable economic development, and income distribution. This paper aims to explore whether the advancement of the digital economy has enhanced the effect of income distribution among industries and examine the role of production efficiency and human capital. Through the use of the multidimensional fixed-effect model, this study finds that the development of the digital economy is favorable to enhancing the income distribution effect among industries, and this income distribution enhancement effect is more prominent in large-scale non-state-owned enterprises. In addition, we also find that digital transformation can dramatically improve the total factor productivity of enterprises, thus enhancing the income distribution impact among industries. The promotion of digital transformation can also improve the quality of human capital in enterprises, strengthen the income distribution impact between industries, and reduce the income disparity among industries. The industry income gap measurement method and the industry perspective of income distribution adopted in this paper contribute to the existing literature and will contribute to the development of income distribution equity in the era of the digital economy and also provide a new vision for sustainable economic development from the perspective of income distribution.

The impacts of basic medical insurance for urban–rural residents on the perception of social equity in China

BackgroundBased on CSS 2019 data, this article analyzes the impact of Basic Medical Insurance for Urban and Rural Residents (BMIUR) on perceived social equity of residents.MethodUsing the CSS data of 2019, this article analyzes the influence of BMIUR on the perception of social equity of residents, on the basis of 2SLS model and mediating effect model.ResultsWe find that BMIUR has a significantly positive impact on the perception of social equity. That is to say, BMIUR can improve residents’ evaluation of social equity and further promote the level of social equity, which makes residents more happiness. The conclusion remains valid after using robustness test and propensity score matching to conduct counterfactual reasoning. The discussion of mechanism indicates that the influence of BMIUR is mediated by enhancing social capital, improving satisfaction of income distribution and reducing self-paid medical expenses. This study also finds that the influence of BMIUR is more obvious in the low-income, low-skilled and mid-west groups.ConclusionThe reform of the medical security system should be regarded as a foothold for improving people’s well-being and promoting social equity; Expanding people’s social capital through multiple channels and improving income distribution mechanisms; Strengthen vocational skills training, especially to provide more public services and social security for low-income groups, low-skilled groups, and groups in the western region of China, in order to improve the welfare and policy effectiveness of China's social security reform.

Coevolution of technical change and income inequality in developed and developing countries

ABSTRACT Recent research challenges the long-held belief that economic growth, technical progress, and improved income distribution are inherently linked. Despite rapid technological advancements in recent decades, income inequality has increased. This study seeks empirical evidence on the relationship between technical change and income inequality, focusing on the roles of heterogeneity and appropriability. Using panel data from 75 countries (grouped into ‘developing’ and ‘developed’) from 1983 to 2015, the researchers applied cointegration tests, unit root tests, and a vector error correction model. They examined variables related to technology creation, diffusion, and the Gini index. The findings indicate that technical change, particularly when it is appropriable, often coevolves with increased income inequality. In developed countries, innovation rewards systems contribute to income disparities, while in developing countries, foreign technology transfer reinforces existing inequalities. The study suggests that without redistributive mechanisms, technical progress can lead to trade-offs that hinder overall development.

Tax progressivity and its influence on tax collection levels in Mexico, 1992-2016

This study aims to examine the impact of income tax and VAT progressivity on Mexico’s tax collection. In Mexico, tax collection has persistently remained at notably low levels, attributed in part to the perceived inequity within the tax system. Initially, we compute the progressivity of income tax and VAT to ascertain the average percentage increase in these taxes relative to a 100% rise in income. Results indicate income tax's progressive nature, contrasting with VAT's regressive pattern. Subsequently, employing a time-series model, we analyze the influence of income tax and VAT progressivity on tax collection. Our findings reveal a positive correlation between fiscal progressiveness and tax collection levels over both short and long terms. These findings offer practical implications, suggesting that leveraging the insights from this research could fortify tax policies, thereby enhancing tax revenues and contributing to improved income distribution. The analysis underscores the importance of considering the level of progressivity in income tax and VAT rates for enhancing tax collection in Mexico. By leveraging progressive taxation policies, policymakers can potentially boost tax revenues while promoting a more equitable distribution of income. Furthermore, an increase in tax collection can potentially support public programs and services benefiting society as a whole, thus enhancing overall welfare.

Pendapatan Perempuan Terhadap Kemiskinan dan Ketimpangan: Bukti Data Panel dari Provinsi Bali

This research aims to analyze the influence of women's income on poverty levels and income inequality in the province of Bali. Using panel data from 9 city districts during the 2011-2022 period, the analytical model applied to test the functional relationship between variables is panel regression with a fixed effect approach. The research results reveal that women's income cannot significantly reduce poverty levels, but can improve income distribution in society. These findings have implications that efforts to reduce levels of inequality and poverty in the province can create an economic empowerment program that is oriented towards increasing women's income.

Trade liberalization, city size, and urban wage premium: evidence from China’s city and individual micro-data

In the context of trade liberalization and new urbanization, it is important to study how urban openness leads to wage premiums and improvements in income distribution. This paper utilizes micro-data from the Chinese Household Income Project and matching data from 144 cities to investigate the relationship between trade liberalization, urban scale, and urban wage premiums. The results indicate that trade liberalization significantly increases urban wage premiums, which is particularly evident during the early stages of China’s accession to the WTO. However, this effect may fluctuate over time. Surprisingly, in China, the urban scale can increase labor wage income, but it does not magnify the wage premium effect of trade liberalization. Heterogeneity tests based on regions, firms, and income groups suggest that the wage premium effect of trade liberalization is higher in eastern and central region cities than in western region cities, labor wage growth in the service sector is more pronounced than in the industrial sector, and the impact of trade liberalization on wage growth for the middle and lower-income groups is greater than for the high-income group, which helps to narrow income disparities among different groups. These findings are of great policy significance for improving income distribution through labor market liberalization. In this context, they highlight the importance of comprehensive openness and new urbanization in China.

The Challenge of Rural Education: Issues of Environment and Shortage of Educators in Nigeria

Education is becoming fundamental to development as it plays a very crucial role in securing economy, improving income distribution and enhancing social progress. However, there are numerous challenges militating against formal education in several rural areas of Nigeria. In view of these, the potential gaps, constraints, and needs of rural education will be discussed in this paper. In particular, this paper will address issues associated with demand and supply of rural educators, educators’ development, cultural context of education, and rural education environment. It will also explore the future trend and channel possible course of actions for rural education, with measures to help ensure proper rural education, and safeguard against possible problems which may emanate from the rural educators. It will as well deal with the issue of creating an enabling environment for rural education. Secondary data would be examined and analysed for further recommendations.

Asgari Ücret, Enflasyon ve Gelir Dağılımı İlişkisi: 40 Ülke Örneği

Today, it is generally accepted that there is a deterioration in income distribution. For this reason, many academic studies are carried out to better understand the factors affecting income distribution. On the other hand, an increase in inflation rates is observed as a result of the increased money supply, especially after the 2008 global economic crisis. This upward trend has brought the issue of inflation to the economic agenda of countries. However, there is no consensus on how the inflation environment affects income distribution. In the study, panel data analysis was conducted with data from 40 countries covering the period 2008-2020 in order to explain the relationship between inflation and income distribution. As a result of the cointegration test, no cointegration relationship was found between inflation and income distribution in the relevant period. However, countries' efforts to improve income distribution are also important. As an indicator of this effort, the countries were divided into two groups according to the increase rate of the minimum wage and the cointegration test was repeated. However, as a result of these tests, no cointegration relationship was found. The results obtained suggest that the relationship between inflation and income distribution has a structure that varies depending on other economic policies implemented in the country and the type of inflation, but the use of non-linear methods in subsequent studies may lead to different results.

The short‐term macroeconomic impact of populism: A case study of Poland

AbstractRecent research shows that populist governments in general depress countries' economic growth and fail to improve income distribution. We study the short‐term macroeconomic consequences of populist policies implemented in Poland since 2015. Using the augmented synthetic control method, we find that the populists boosted the gross domestic product per capita by almost 8% between 2016 and 2019. We do not find any effect of populism on inflation and estimate only small labor market impacts. The populists improved tax revenue collection and reduced public debt. A generous child benefit program and other redistributive policies introduced by the populists significantly reduced overall poverty and almost eradicated absolute child poverty. Our results suggest that antiestablishment populists may have macroeconomic viability, at least in the short term.

ANALISIS KINERJA EKONOMI DAERAH HASIL PEMEKARAN (STUDI KOMPARATIF KABUPATEN PASAMAN BARAT, DHARMASRAYA, SOLOK SELATAN)

Regional Autonomy is implemented so that regions can explore regional potential and be independent in managing existing resources. One of the policies for implementing regional autonomy is the granting of authority to regions to carry out expansion as part of community aspirations. After regional expansion, regions are required to be able to overcome their economic problems, such as increasing economic growth, reducing poverty rates, reducing unemployment rates, improving income distribution, and reducing development inequality. This research aims to see how far the regions resulting from this expansion have developed, An evaluation was carried out by measuring the Economic Performance Index (IKE) in the three districts resulting from the expansion, namely West Pasaman district, Dharmasraya district, and South Solok district. The economic performance index is the result of the average rate of economic growth, the ratio of district GRDP to provincial GRDP, GDP rate per capita, and poverty level. This research uses secondary data with descriptive analysis. The research results show that Dharmasraya district is a district with a better economic performance index than West Pasaman district and South Solok district.
 

Analysis of the Long-run Linkage Effect between Pension Insurance and Economic Growth Based on VAR Modeling

This paper conducts an empirical analysis based on the VAR model to explore the mechanism of the long-term spillover effects of our country's pension insurance on economic growth. The study reveals that the implementation of the pension insurance system can stimulate consumption and savings among the elderly, thus promoting economic growth. Additionally, it encourages increased labor supply and fosters the accumulation of human capital, exerting a positive impact on economic growth. The equity and sustainability of pension insurance can improve income distribution and reduce wealth disparity, leading to a favorable impact on economic growth. Furthermore, the empirical analysis demonstrates the long-term spillover effects of pension insurance on economic growth, providing significant support for the sustainable development of the pension insurance system and economic growth. This holds considerable theoretical and practical value for formulating pension insurance policies and promoting sustainable economic development.

Entrepreneurship Training for MSMEs to Increase Income

Micro, small and medium enterprises (MSMEs) are an important sector in the Indonesian economy, because they can create jobs and improve income distribution. However, many MSMEs experience difficulties in gaining access to markets and developing their businesses due to a lack of skills and knowledge in the field of entrepreneurship. This study aims to determine the effectiveness of entrepreneurship training for MSMEs in increasing income. This study used qualitative research methods. Data collection techniques were carried out by interviews and literature studies. The results of the study show that entrepreneurship training for Micro, Small and Medium Enterprises (MSMEs) is effective in increasing income. In the study, MSMEs who attended entrepreneurship training showed a significant increase in their income compared to MSMEs who did not attend training. This is because entrepreneurship training equips business actors with the skills and knowledge needed to increase the efficiency and productivity of their businesses, as well as opens opportunities to expand networks and markets. In addition, entrepreneurship training also helps increase the confidence and motivation of business actors, so that they are better prepared and able to face challenges in developing their businesses. Therefore, entrepreneurship training can be one of the key factors in increasing MSME income and supporting economic growth at the local and national levels.

Digitalization of customer service in small and medium-sized enterprises: drivers for the development and improvement

PurposeSmall and medium-sized enterprises (SMEs) are fundamental to the socioeconomic development of a country or region. They directly contribute to increasing employment generation and improving income distribution. Despite the importance of SMEs, there are still opportunities for developing works that support and guide SMEs to use digital technologies, especially to digitalize their customer service. Therefore, this work aims to propose drivers containing recommendations for developing and improving the digitalization of customer service in SMEs.Design/methodology/approachThis work uses a qualitative approach to systematize the main SMEs' characteristics and identify the boosting elements of the digitalization of customer service in the scientific literature. To this end, the authors conducted a content analysis of the most influential empirical and theoretical articles on the theme published from 2016 to 2021 in the Scopus database.FindingsThis work identified 38 boosting elements of the digitalization of customer service based on the scientific literature. These elements were grouped into six drivers for developing and improving the digitalization of customer service. The drivers contain recommendations that were adapted for SMEs according to their characteristics and based on the experience of the authors of this work.Originality/valueThis work contributes to promoting socioeconomic development, providing important solutions for managers and owners of SMEs to improve their customer service. The proposed drivers support and encourage the use of digital technologies for developing and improving customer service, overcoming the challenges of digitalization in these companies. Thus, SMEs will be able to increase the satisfaction of their customers and improve their competitiveness.

Income Inequality in Africa: Exploring the Interaction Between Urbanization and Governance Quality.

While many studies have examined the influence of urbanization on income inequality, the study on the moderating effect of governance on the relationship between urbanization and income inequality remains quite inexistent. To fill this gap in the literature, the study examines the moderation of governance quality on the influence of urbanization on income inequality in 46 African economies from 1996 to 2020. A two stage system GMM estimation approach has been used to achieve this goal. The results unveil that the impact of urbanization on income inequality is positive and significant, meaning that increase in urbanization exacerbates income inequality in Africa. However, the results show that the improvement of governance quality could contribute to improve income distribution in urban areas. Interestingly, the results show that improving governance quality in Africa could contribute to spurring a positive urbanization which could contribute to promote urban economic growth and reduce income inequality.

Moderating effect of ICT on the relationship between governance quality and income inequality in sub-Saharan Africa

The ICT-income inequality relationship and the governance quality-income inequality nexus have been investigated in recent years. However, the moderating effect of ICT on the governance quality-income inequality linkage has been largely ignored. To fill this gap in the literature, this study examines the moderating effect of ICT on the relationship between governance quality and income inequality for a panel of 42 sub-Saharan African economies over the period 1996–2020. To achieve this goal, the generalized method of moments (GMM) estimation technique has been adopted. The results reveal that while ICT contributes to the improvement of income distribution, governance quality contributes to the exacerbation of income inequality. Interestingly, the results unveil that the promotion of E-governance could contribute to improve social welfare and reduce income inequality. Policy implications are given based on the findings of this study. For instance, institutional reforms must be conducted by considering ICT as an important factor to improve income distribution.

Shared Prosperity and the Quintile Income in Sudan: Preliminary Findings

This paper attempted to tackle tow issues: the first issue is the income distribution top income quintiles (including some parcels) with bottom 20% and 40% ones. Secondly whether economic growth alone, could reduce extreme poverty and mitigate income inequality in Sudan? Different prosperity shared indicators applied to data obtained from two Labor Force Migration households’ Surveys collected by Ministry of Manpower for years 1996 and 2011. The findings of this study indicated that the income share of bottom 40% failed to catch up with shares of top 10%.and overall per capita .Accordingly, all the shared prosperity indicators results were associated with idea of polarization in the Sudan society, and more importantly CAGR (as one of indicators) empathized that the bottom 20% income have to grow by more than 60% annually in order to catch up with overall per capita growth during the period of the study. To improve the picture of the income distribution and to reverse the situation of poverty in Sudan, the pattern of economic growth has to be restructured and to be associated with high economic participation. The paper recommended a deliberate government intervention to improve income distribution.

Is terrorism a spoilsport for the sustainability of economic development?: evidence from the economic community of West African states

PurposeThe objective of this paper is to determine the impact of terrorism on the sustainability of the development of West African countries, highlighting the role and interactions of income inequality and the level of education in this relationship for the period 2000–2019.Design/methodology/approachThe appropriate tests indicated that the dynamic ordinary least squares (DOLS) model is the most suited to analyze the terrorism phenomenon in the study area.FindingsThe results confirm the critical challenge to sustain economic development in a context marked by a high risk of terrorist attacks. Fortunately, the negative effect of terrorism on economic development is not a fatality. Ways do exist to limit the magnitude of the phenomenon impacts since the results also revealed that countries with higher percentages of educated people experience a lower magnitude of terrorism impact. Similarly, reducing inequalities is another way of controlling the magnitude of terrorism's impact on development sustainability.Originality/valueThis paper aims to contribute to the economic literature on the economic effects of terrorism in two main ways. First, to the author's knowledge, this is the first attempt to establish terrorism implications in terms of development sustainability in the ECOWAS region. The second contribution is that the author tries to find an empirical validation of the hypothesis according to which an increase in the level of education and improvement in income distribution could reduce the impact of terrorism on development sustainability.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0565.

The effects of subsidies on foods in Iran: A narrative review

BackgroundSubsidy payments are used to support low-income groups and may improve income distribution and increase social welfare. The food subsidy programs and their long-term effects have been considered as major developmental issues in many developing countries. This review study aimed to examine the effects of subsidies on the food and nutritional status of Iranian people.MethodsEnglish and Persian language databases were searched using related keywords to discover studies on the effects of subsidies on food and nutritional status in Iran. A manual search was also conducted encompassing national and local research projects in Iran. In total, 12 articles were finally included out of an initial total of 70 studies.ResultsSubsidy payment affects many socio-economic variables. In Iran, subsidies are often paid for the basic goods and commodities that are a main part of the consumption patterns of most Iranian people. So, if the basic needs of the people are not well-understood, changes in economic structures may lead to a change in consumption patterns. In addition, physical payments for food may lead to an increase in the consumption of different groups, but cash payments do not necessarily lead to an increase in food intake.ConclusionThe method of payment should be chosen correctly to improve the protection of vulnerable populations. The distribution of targeted subsidies for food security is inevitable due to limited resources available to support vulnerable populations.

ИЗМЕРЕНИЕ ЦЕЛЕДОСТИЖЕНИЯ СТРАН В ОБЛАСТИ УСТОЙЧИВОГО РАЗВИТИЯ В МЕЖДУНАРОДНОЙ СРЕДЕ

The paper studies the possibilities of using methods for measuring goal achievement in the field of sustainable development using the example of socio-economic systems on a global scale. Based on open access data, groups of variables were selected that characterize the development of countries in these areas for three time periods, and variables were identified that make it possible to construct the most stable and describable clusters of countries. An analysis of the shift of cluster centroids, the movement of countries across clusters was carried out, and the movement of countries towards the target state in the field of sustainable development was quantitatively measured. It has been proven that the results of economic growth in only half of countries lead to significant improvements in income distribution and the environment.

The effects of foreign direct investment on the performance of small-medium enterprises: The case of Vietnam

Foreign direct investment (FDI) is one of the most important elements influencing countries' international economic integration. FDI establishes direct, consistent, and long-lasting interconnections between economies as well as encouraging innovative technology and know-how transmission across territories while allowing host economies to offer their goods more extensively on global markets. FDI is also a source of investment financing that creates the climate for appropriate policies. Aside from the obvious advantages for all economic sectors, attracting FDI in small and midsize enterprises (SMEs) has a variety of additional benefits. For example, an opportunity to participate in the global supply chain for parts and components; an opportunity not yet wholly established in most developing nations but is critical for industrialization and improving income distribution through job creation for low-skilled employees. This study compared the impact of FDI on the performance of SMEs in Vietnam to that of a group of ASEAN nations with comparable economic structures including Indonesia, Malaysia, and Thailand. The empirical evidence indicates that FDI has a negative effect on the performance of SMEs in the group of four ASEAN member countries while having a positive influence on Vietnamese SMEs.