Income Distribution Gap Research Articles

Industrial restructuring and corporate income distribution gap

This study employs regression analysis to investigate the crucial role of industrial restructuring in reducing the income distribution gap within the enterprise. The findings show the following. First, adjusting the industrial structure has substantially increased the average wage levels for companies and their employees, particularly for rank-and-file workers, while exerting little influence on executive compensation. Second, industrial restructuring indirectly boosts the income growth of companies and their employees by fostering technological advancements, improving production efficiency, and expanding sales volume. Finally, the positive impact of industrial restructuring on corporate income distribution is more pronounced in state-owned enterprises and competitive sectors.

Analisis Disparitas Distribusi Pendapatan Petani Kelapa Sawit di Kabupaten Rokan Hulu

The analysis aims to examine disparities in income distribution among oil palm farmers in Rokan Hulu Regency. Primary data consists of the results of distributing questionnaires to 100 oil palm farmers in the research location, then analyzed using the Gini coefficient and Lorenz curve methods. Research findings indicate that the income distribution gap for oil palm farmers in Rokan Hulu Regency tends to be low, meaning that the average income is almost evenly distributed. However, integration or comparison with other research locations is needed to obtain more comprehensive results.

The Relationship between Regional Educational Resource Inequality and Income Inequality: The Case of China

The relationship between intra-regional inequality in educational resources and income inequality has always been the focus of social development and equity issues. Using the education Gini coefficient as the main indicator for portraying educational inequality, this paper selects relevant provincial panel data to study the relationship between inter-regional educational inequality and the widening of the income distribution gap in China, and finds that: 1) China's inter-regional educational inequality is positively correlated with the income distribution gap; 2) Over time, the effects of unequal access to education and widening economic disparities are becoming more pronounced. In order to stop the income gap from expanding due to educational inequality, the government should invest more in education, boost the rate at which educational resources are used, and support the coordinated growth of interregional education. This article fills the research gap on the relationship between educational resources and income in the last decade and contributes to the national education field.

Income composition inequality of Chinese residents and fiscal redistribution effect: An empirical analysis on individual income tax and transfer system.

Based on the data of China Family Panel Studies (CFPS), this paper decomposed Chinese residents' income into labor income and capital income by income source, and measured the income inequality and income composition inequality of Chinese residents during 2010-2018. We take the Gini coefficient as a measure of inequality and, by decomposing it by income source, analyze the absolute and relative marginal effects of capital income and labor income on the overall income inequality. On this basis, this paper discusses the redistributive effect of financial instruments such as personal income tax and transfer payment on income inequality and income composition inequality. The results show that capital income is not only the main driving factor for the increase of overall income inequality, but also its influence on inequality is gradually increasing. The results of the redistribution effect of fiscal instruments show that although individual income tax and transfer payment both help to reduce the overall income inequality, only individual income tax can reduce the inequality of income composition, while transfer payment will exacerbate it. In the background of the rising share of capital income, it may widen the income distribution gap in the long run. Hence, future fiscal redistribution efforts should consider the income composition inequality. This includes further promotion of individual income tax reforms, optimization of the tax rate structure, enhancement of relevant tax laws governing capital income like property income, and continuous improvement in the redistributive impact of fiscal instruments.

The Impact of Public Education Expenditure on the Urban-rural Income Distribution Gap: Based on the Moderating Effect of Local Government Debt

The Impact of Public Education Expenditure on the Urban-rural Income Distribution Gap: Based on the Moderating Effect of Local Government Debt

Study on Whether International Trade Has Increased the Inequality in China's Domestic Income Distribution

Inequality in income distribution is a major problem faced in China's and even global development, and has traditionally attracted much academic attention. How to reduce the income distribution gap and achieve common prosperity has also been an important concern of the government for a long time. Meanwhile, foreign trade plays a pivotal role in China's economic development, and along with the changes in the external trade environment and internal economic policies, the country is witnessing a new situation of full openness in all regions. Based on the above background, this paper investigates whether there is an impact of foreign trade on China's income distribution. The empirical results show that foreign trade has increased the income distribution inequality in China, and the impact of export trade on intra-regional income inequality is greater than that of import trade on intra-regional income inequality; the impact of export trade on income inequality in coastal cities is greater than that in inland cities, when viewed by coastal and inland. Finally, based on the empirical results, this paper puts forward three suggestions on narrowing the inequality of domestic income distribution: reasonable guidance of foreign investment, optimization of industrial structure, and increasing the cultivation of talents.

The impact and mechanism of the relaxation of fertility policy on income distribution: Evidence from China's Selective Two Children Policy

<p><big>Numerous studies have explored the impact of family planning policies on income distribution, but the impact of policy relaxation remains largely unexplored. To address this gap, we investigate the effects of China's selective two-child policy, which was implemented in 2013, using provincial panel data from 2011 to 2016. Specifically, we employ a generalized difference-in-differences model to empirically analyze the impact and mechanism of the policy relaxation on residents' income distribution. Our findings are as follows. Firstly, the selective two-child policy has narrowed the income distribution gap. Secondly, male labor force participation, the urban-rural income gap, and disposable income serve as mechanisms through which the selective two-child policy affects income distribution. Thirdly, the robustness test confirms the robustness of our conclusions. Finally, we observe regional heterogeneity in the impact of the selective two-child policy on residents' income distribution. Specifically, the policy has had significant effects in the western and northeastern regions, but not in other regions. Overall, our results shed light on the impact of childbearing policies on income distribution, providing important insights for optimizing China's childbearing policies and promoting common prosperity.</big></p>

The capital logic of platform economy globalisation and it’s critique and transcendence

PurposeTo realise the shared development of the digital economy, people need to transcend the capital logic and advocate the logic of cooperative development, i.e. “co-construction, benefit-sharing and co-governance”. This study aims to discuss the aforementioned statement.Design/methodology/approachPlatform economy is a new economic form produced by the transformation of the social production patterns in the era of digital capitalism. In the neo-imperialist stage, a new stage of capitalist development, capital logic promotes the global expansion of the platform economy and influences its development process, organisational form, contradictions and dilemmas and internal transcendence. Having the spatiotemporal chain of capital circulation repaired, the globalisation of the platform economy is reshaping how the means of production are combined with labour, affecting the local changes in the general relations of production and “international relations of production”.FindingsIn the accumulation of digital capitalism, the social contradictions and fundamental contradictions in the capitalist world have been further intensified, making exploitation, income distribution gap, monopoly and other problems increasingly severe. The imbalance and inequality in the global development of the digital economy are increasingly prominent.Originality/valueRegarding the global governance of the digital economy, China, as a major responsible country, will strive to encourage all countries to co-build a community with a shared future in cyberspace. In the new international development pattern of digital economy globalisation, China must take effective measures to actively safeguard its national security and development interests to meet specific challenges.

The Impact of Industrial Robots on the Skill-Based Wage Gap

In recent years, with the disappearance of the demographic dividend of the aging society and the requirements for high-quality economic development under the new normal, the application of industrial robots has rapidly advanced in the Chinese market. As an emerging driving force of technological progress, artificial intelligence has its own technological bias, but the existing literature has not paid attention to whether this bias will widen the income distribution gap of labor with heterogeneous skills. Based on this, this paper uses the panel data of 30 provinces from 2006 to 2015 to describe the application level of industrial robots with the import volume of industrial robots, and establishes a macro proxy indicator of skill-based wage gap according to the data of different skill industries to test the industrial robots in the Chinese context, using real effects on skills wage gaps, and conducting an analysis of geographic heterogeneity. In addition, further investigate the mechanism by which intelligent equipment exacerbates the skill-based wage gap, and analyze the possible “substitution effect”, “demand effect” and “asymmetric labor productivity effect” of the use of industrial robots on the skilled labor force. The results show that the use of industrial robots has a significant positive effect on the expansion of the skill-based wage gap. The use of industrial robots will exacerbate the wage gap between the high-skilled and low-skilled labor in the market. This effect comes from a combination of three effects: the “substitution effect”—the use of industrial robots will change the skill structure of employment, reducing the proportion of low-skilled workers; the “demand effect”—the use of industrial robots will change to some extent. The increase in demand for high-skilled labor has no significant impact on the demand for low-skilled labor.

The Impact of Education on Income Inequality in China: Measurement and Decomposition

In recent years, while maintaining steady and rapid economic development, the government has also achieved some results in adjusting the income distribution gap, but income distribution equity is still one of the focus issues of public concern. Since education is one of the important channels to obtain human capital and has an important impact on residents’ income level, this paper attempts to explore the impact of education on income inequality in China from the perspective of opportunity equality. Firstly, this paper uses the instrumental variable method to measure the contribution share of education in the income distribution inequality of Chinese residents, and further decomposes the proportion of reasonable and unreasonable components under the framework of opportunity equality theory. The measurement results based on the Chinese General Social Survey (CGSS) data in 2017 show that: (1) The income inequality caused by education accounts for 50.87% of the total income inequality, and the proportion coefficient has significant age heterogeneity, indicating that the difference in education level is one of the important reasons for the uneven income distribution of Chinese residents. (2) Among the income inequality caused by education in China, the unreasonable component accounts for about 44%. This part of inequality is mainly determined by environmental factors for which individuals should not bear responsibility, such as family background, social environment and individual characteristics. In the lower age group, the proportion of income inequality caused by education attributed to environmental factors is higher. (3) The decomposition results based on the Shapley value method show that among all environmental factors, the contribution share of family cultural factors is as high as 42.94%, followed by family economic factors and social environmental factors (23.50% and 23.36% respectively), and the remaining 10.20% is attributed to individual characteristic factors. There are some differences in the contribution share of various environmental factors in different age groups. In addition, the longitudinal comparison of the measurement results based on CGSS data in different years shows that the above main indicators fluctuate irregularly in a small range, and the basic conclusions of this paper are robust. This study examines the important role of education in the income distribution of Chinese residents from the perspective of equity, and further explores the causes of unreasonable and unfair parts of income inequality caused by education, which provides further theoretical support and factual basis for the implementation of relevant policies to promote income distribution equity.

Income inequality and oil resources: Panel evidence from the United States

The resource curse is sometimes associated with poor resource-rich countries. However, using panel evidence from the United States, we find that the resource curse is also prevalent in a wealthy resource-rich country. This study investigates the impact of oil resources on income inequality, with a particular focus on distinguishing between the effects from oil abundance (i.e. production) versus oil dependency (i.e. consumption). We observe contrasting non-monotonic outcomes from oil abundance in comparison to oil dependency. For oil abundance, states with low oil production will have less inequality if they increase oil production, and states with high oil production will have increased income inequality if they increase production. The opposite holds true for oil dependency. The findings suggest several channels of concern. For example, oil-rich states are more vulnerable to rent-seeking behaviour as oil production and oil revenues increase, which can adversely affect the income distribution gap. On the other hand, oil-dependent states are more likely to be affected by commodity price shocks which can increase income inequality.

Direct Taxes and Income Redistribution in Nigeria

Introduction - Income redistribution is central to the development of any nation. However, the issue of generating income and its redistribution in Nigeria has been challenging overtime, with the nation depending largely on oil with little consideration on other sources of income. Also, insufficient tax resources, tax collectors' illicit activities and a lack of awareness of the value of paying tax by taxpayers are some of the problems facing the country in terms of tax revenue generation. Objective - Our study therefore investigated the impact of direct taxes on income redistribution in the context of Nigeria, using company income tax, personal income tax, petroleum profit tax and education tax as direct tax variables. Methodology/Technique - The study covered the period 1990 to 2019 using annualized data set from Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria Statistical Bulletin. The study employed the Fully Modified Least Squares (FMOLS) to analyze the data. Research Findings - Empirical results of our study revealed that, company income tax and education tax had insignificant negative effects on income redistribution, while personal income tax and petroleum profit tax had significant positive effects on income redistribution, thus reducing income inequality in the context of Nigeria. Recommendations - We thus recommended "inter alia" that, revenue generated from taxes should be effectively used by government in providing quality infrastructures like schools, railway, healthcare facilities and other business outfits across various states for the general wellbeing of the citizens as this is hoped to close the income distribution gap between the rich and the less privileged in the country. Type of Paper - Empirical. Keywords: Income redistribution; direct taxes; government expenditure on infrastructural goods; Fully Modified Least Squares (FMOLS), Nigeria; Income Inequality. JEL Classification: E21; E42; E62; O23 URI: http://gatrenterprise.com/GATRJournals/GJBSSR/vol9.2_8.html DOI: https://doi.org/10.35609/gjbssr.2021.9.2(8) Pages 182 – 196

Impact of Enterprise Financing Constraints on Labor Income Share Based on Internet of Things Data Analysis Technology

Although the Chinese economy has developed rapidly since the reform and opening up, the income distribution gap is widening year by year. The final social income distribution pattern is highly dependent on the primary distribution pattern. Therefore, the changing trend and influencing factors of labor income share have become the focus of academic research and the focus of government attention. Based on this, this article proposes enterprise financing based on Internet of Things data analysis technology. Studies on the impact of restraints on labor income shares will help further research on the impact of corporate financial restraints on future labor income shares. Based on the financial data reports published in the CCER database and the company’s IPO prospectus and annual report, this paper discusses whether the company’s key business products belong to the Internet of Things’ key technology application categories. Take 226 IoT companies as the research objects of this article, and conduct a secondary screening. The final survey sample is used to investigate the impact of corporate funding constraints on labor income share. Tests have proved that among the 179 resource‐based enterprises undergoing transformation, 109 enterprises have undergone intraindustry transformation, accounting for 48.23% of the overall sample and 60.89% of the sample of transformed enterprises. Downstream expansion makes the business industry expand. This shows that funding constraints have a negative impact on labor income share. This is primarily the result of the impact of the long‐term debt‐to‐asset ratio on labor income share.

Analysis of income distribution as prevention of environmental damage in agribusiness management of cassava in Bengawan Solo watershed, Wonogiri regency

This research was conducted with the aim of 1) knowing the income distribution or income gap among cassava farmers, 2) looking for solutions to increase cultural values in preventing environmental damage related to the management of cassava agribusiness in the Bengawan Solo Wonogiri watershed, which indicates environmental damage in land degradation and erosion which leads to silting of the Wonogiri Reservoir. This research used a survey approach with cross-sectional data, with a questionnaire research instrument. Data were analyzed with income analysis and income distribution analysis by looking for the Gini Index value and depicted by the Lorentz curve. The results showed that the level of income gap was quite high with the Gini Index number reaching 0.40 in the management of cassava agribusiness. It is recommended to strengthen cultural values through increasing the capacity of farmers’ human resources in social empathy.

Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia

This paper examines how human capital and other economic variables, such as private investment, economic growth, government investment, inflation, and unemployment influence inequality in Indonesia's provinces. We apply panel data model with fixed effect estimation for the data of 34 provinces from the period 2013 to 2019. We develop a new index for human capital using the education index approach. The results show that human capital has a negative and significant effect on income inequality. An increase in human capital is related to an increase in knowledge and competence due to the longer average school year and expectations of the school year. Human capital has increased the possibility of a person being accepted into the job market and earning a higher income; hence, it lowers income inequality. We also find that inflation leads to a higher gap of income distribution. A further implication of this situation is that the rise in inflation causes an increase in low-income people, and as a consequence, makes their lives worse off. This paper will be beneficial for policy-makers for whom human capital, which is measured using an education index, is an important factor that significantly affects income inequality, in addition to other economic factors.

PENGARUH UPAH MINIMUM REGIONAL DAN RASIO INFRASTRUKTUR TERHADAPKESENJANGAN DISTRIBUSI PENDAPATAN DI INDONESIA

This study aims to examine the impact of region minimum wage and infrastructure ratio onIncomeDistribution Gap in Indonesia. This study uses panel data for the period 2011-2017 and consists of 33provinces, except North Kalimantan Province because it is a new province. By using fixed effectpanel data regression analysis, with dependent variable is gini index. While independent variable areregional minimum wage and infrastructure ratio.On the one hand, based on hypothetical test, theresults show that the regional minimum wage and infrastructure ratio have a negative and significanteffect on the income distribution gap in Indonesia. On the other hand, based on the individual effectstest, the large islands such as Sumatera, Java, Kalimantan, Sulawesi, Bali, Maluku, and Papua have apositive effect on the gini ratio. This shows that there is an impact of the infrastructure ratio functionand regional minimum wages in increasing the distribution of income as measured by the gini index.

Determinan sosial ekonomi kesenjangan distribusi Pendapatan penduduk di Kawasan Timur Indonesia

Inequality of income distribution and its determinants still leaves mixed debate and empirical findings. The source of inequality in population income distribution is in Eastern Indonesia (KTI) in line with the economic development performance that is still low compared to Western Indonesia (KBI). This study aims to examine the socio-economic factors that influence the income distribution gap in KTI, with a focus on economic growth, employment opportunities, farmer exchange rates, regional minimum wages, and education. Quantitative analysis tools used are panel data regression models with fixed effect model estimation techniques. The data used is panel data of 12 provinces in Eastern Indonesia, for the period 2010-2017. The results showed that both partially and simultaneously economic growth, employment opportunities, farmer exchange rates, and education levels contributed significantly to reducing the income distribution gap. The recommendation for regional governments is to accelerate economic growth accompanied by the expansion of employment opportunities and education development equally, and also the optimization of agricultural sector development.

Does Agricultural Performance Contribute to Rural Poverty Reduction in Indonesia?

Agriculture is the primary sector in many provinces in Indonesia. In fact, most of the rural communities work in the agricultural sector. Nevertheless, the poverty level in rural areas remains high. Therefore, this study was aimed at investigating the performance of the agricultural sector in reducing the rural poverty level in Indonesia, and to investigate factors that contribute as a determinant in reducing rural poverty level in Indonesia. This study was significant, considering that the result was to contribute to government policy evaluation in the agricultural sector, especially in reducing poverty in rural areas. This study used quantitative analysis through multiple regressions with data panel from 2014 to 2017 from 33 provinces in Indonesia. This study revealed that the increase of agricultural sector share and the widening of the income distribution had caused an increase in poor people in a rural area. This finding also revealed that the income distribution gap was a determinant to the severity of rural poverty. The growth in the agricultural sector to contribute toward the economy could reduce rural poverty level in Indonesia. Meanwhile, agricultural financing, economic growth, inflation, and the farmer exchange rate had not significantly contributed to reducing the poverty level.

The impact of Income Gap on Environmental Pollution: empirical evidence from China’s energy producing regions

Previous studies have suggested that the widening of the income distribution gap usually leads to the delay of the turning point of the environmental Kuznets curve. As far as an energy producing area in the western region is concerned, this paper argues that the rich have a strong ability to pay for the cost of mobility. This gap in income distribution leads the rich to emigrate to areas of higher environmental quality to reduce their demand for environmental governance in the region. At the level, in the case of the total supply of environmental governance, the lower demand for environmental governance in the region will lead to the lack of environmental governance and the deterioration of environmental quality in the region. This paper proves the above point by establishing a two-region spatial flow model, and the test results of time series data of environmental governance investment in northern Shaanxi also support this conclusion.Therefore, from the perspective of rich immigrants, this paper expounds the internal mechanism that the widening income distribution gap will lead to the decline of environmental quality in the region. Finally, some policy suggestions are put forward, such as raising the tax rate of resources and environment. Or reducing the tax rate of individual income, combining the principle that who pollutes and governs with the principle of using environmental products and who pays.

The effect of innovation and technological specialization on income inequality

Using a panel of 28 European Union countries for the period 2003–2014, the authors provide empirical evidence for the relationship between innovation, technological specialization, and income inequality. The results of the fixed effect panel regressions show two important findings. Firstly, the positive link was found between innovation, as measured by patenting activities, and income inequality as measured by Gini index and the top 10% income shares of the richest. Secondly, the authors also found the positive correlation between technological specialization, as measured by the Coefficient of Variances (CV) of Revealed Technological Advantage Index, and income inequality. Overall, the study enriches the previous literature suggesting that innovation may increase the gap of income distribution through the mechanism of Skill-Biased Technical Change (SBTC) and the Schumpeterian view of entrepreneurial rent. More importantly, this study is the first which found that not only the level of innovation does matter to the income distribution, but also how the innovation activities are specialized or diversified. Concentrating the activities into few narrow sectors (i.e., increase technological specialization) may also lead to the increase of income inequality.