Levels Of Income Inequality Research Articles

Impact of agricultural infrastructure development on inequality and optimization equality of farmers’ income in Indonesia-Timor Leste Border Area

This research aims to analyze income inequality and the factors determining inequality, as well as the allocation of land resources that optimize income distribution. The research is a continuation of previous research that found production and income growth as a result of the construction of the Roticlot Dam in the border area of Indonesia and TimorLeste. The research used survey methods in Fatuketi Village, the location of agricultural infrastructure (Rotiklot Dam) in the Indonesia and Timor Leste Border Area. Data analysis uses Gini, Tobit ratios, and linear programming. The results of the Gini ratio analysis show that there has been a decrease in income inequality from medium (Gini Ratio = 0.44) to low (Gini Ratio = 0.26); and the results of the Tobit analysis state that the factor that has a significant positive effect on income inequality is land area, while farmer independence, the number of family dependents, and business capital have a significant negative effect. Furthermore, land resource factors that have a positive influence on income distribution are allocated appropriately and fairly so that income equality is achieved, namely IDR 3,732,692.81 (Gini Ratio = 0.00, which is a very low level of income inequality). It is recommended that agrarian reform through the distribution of additional land be adjusted to the existing conditions of land area, income, availability of water resources, and socio-economic factors.

A Neighborhood-level analysis of mental health distress and income inequality as quasi-longitudinal risk of reported COVID-19 infection and mortality outcomes in Chicago.

Extant literature investigates the impact of COVID-19 on mental health outcomes, however there is a paucity of work examining mental health distress as a risk factor for COVID-19 outcomes. While systemic variables like income inequality relate to both mental health and COVID-19, more work is needed to test theoretically informed models including such variables. Using a social-ecological framework, we aimed to address these gaps in the literature by conducting a neighborhood-level analysis of potential mental health distress and systemic- (income inequality) level predictors of reported COVID-19 infection and mortality over time in Chicago. Neighborhood-level comparisons revealed differences in mental health distress, income inequality, and reported COVID-19 mortality, but not reported COVID-19 infection. Specifically, Westside and Southside neighborhoods generally reported higher levels of mental health distress and greater concentration of poverty. The Central neighborhood showed a decline in reported mortality rates over time. Multi-level negative binomial models established that Zip-codes with greater mental health distress were at increased reported COVID-19 infection risk, yet lower mortality risk; Zip-codes with more poverty were at increased reported COVID-19 infection risk, yet lower mortality risk; and Zip-codes with the highest percentage of People of Color were at decreased risk of reported COVID-19 mortality. Taken together, these findings substantiate Chicago neighborhood-level disparities in mental health distress, income inequality, and reported COVID-19 mortality; identify unique differential associations of mental health distress and income inequality to reported COVID-19 infection and reported mortality risk; and, offer an alternative lens towards understanding COVID-19 outcomes in terms of race/ethnicity.

Market structure and net determinants of turmeric marketing in Onitsha agricultural zone, Anambra state, Nigeria

A study was conducted to analyze the market structure and determinants of turmeric marketing in the Onitsha agricultural zone of Anambra State, Nigeria. The research aimed to understand the socioeconomic characteristics, market structure, factors influencing net marketing income, and constraints in turmeric marketing. The sample consisted of 160 intermediaries, including 80 wholesalers and 80 retailers, selected using multistage and random sampling methods. The collected data were analyzed using descriptive statistics, Gini coefficient, multiple regression, and relative index techniques. The findings revealed a male dominance in the turmeric market, particularly among wholesalers, where 60.00% of marketers were men. This indicates gender sensitivity within the market at various levels. The market structure analysis showed Gini coefficients of 0.6866 and 0.7495 for wholesalers and retailers, respectively. These coefficients suggest a high level of income inequality in terms of sales margin and a concentration of sales among a small group of marketers, indicating the presence of imperfect competition in the market. Among the eleven independent variables included in the analysis, age, education, source of finance, and engagement in other business activities significantly influenced the net marketing income of wholesalers. At the retail level, household size, gender, engagement in other business activities, marketing experience, and product price were identified as factors influencing net marketing income. The constraints analysis revealed that online marketing, transportation costs, taxes, and local government charges were perceived as the main constraints at the wholesale level. On the retail level, the constraints were online marketing, irregular market days, and insufficient start-up capital. Based on these findings, it is recommended that the government and relevant agencies reduce taxes and charges imposed on marketers to alleviate their burden. Additionally, addressing the poor condition of roads is necessary for proper marketing in the region.

Market Structure and Market Conduct of Garden Egg Fruits Marketing in Onitsha Agricultural Zone, Anambra State, Nigeria

The study examined income and revenue analysis of garden egg fruits marketing in Onitsha agricultural zone, Anambra State, Nigeria. Specifically, it described the socioeconomic characteristics, determine the market structure, market conduct and constraints to garden egg fruits marketing in the study area. Multistage and sample random sampling methods were used to select 160 intermediaries 80 wholesalers and 80 retailers for the study. Data were analyzed using descriptive statistics, gini coefficient and relative index techniques. Findings from socioeconomic characteristics revealed that majority of the marketers had one level of education or other thus making the study area a very vibrant economic hub center for business activity The result of market conduct revealed that both the wholesalers and retailers used big balls of garden egg fruits (size) as a criteria for their selling strategies. . Findings from gini coefficient revealed a gini coefficients of 0.7155 and 0.7488 for wholesalers and retailers respectively. This implies a high level of income inequalities (sale margin) in the distribution of income among the marketers and high concentration of sales in the hands of few marketers hence existence of imperfect competition in the market. The result revealed that some marketers can influence price of the commodity. Under aged hawking should be discouraged and irrigation system should be provided for all year-round availability and there is a need for government to address bad conditions of our road to minimize the cost of transportation were recommended. Keywords: Marketing, structure, Fruits, conduct

Income inequality and mental health in adolescents during COVID-19, results from COMPASS 2018-2021.

Understanding the inequitable impacts of the ongoing COVID-19 pandemic on youth mental health are leading priorities. Existing research has linked income inequality in schools to adolescent depression, however, it is unclear if the onset of the pandemic exacerbated the effects of income inequality on adolescent mental health. The current study aimed to quantify the association between income inequality and adolescent mental health during COVID-19. Longitudinal data were taken from three waves (2018/19 to 2020/21) of the Cannabis, Obesity, Mental health, Physical activity, Alcohol, Smoking, and Sedentary behaviour (COMPASS) school-based study. Latent Growth Curve modelling was used to assess the association between Census District (CD)-level income inequality and depressive symptoms before and after the onset of COVID-19. The study sample included 29,722 students across 43 Census divisions in British Columbia, Alberta, Ontario, and Quebec. The average age of the sample at baseline was 14.9 years [standard deviation (SD) = 1.5] and ranged between 12 and 19 years of age. Most of the sample self-reported as white (76.3%) and female (54.4%). Students who completed the COMPASS survey after the onset of COVID reported 0.20-unit higher depressive scores (95% CI = 0.16, 0.24) compared to pre-COVID. The adjusted analyses indicated that the association between income inequality on anxiety scores was strengthened following the onset of COVID-19 (β = 0.02, 95% CI = 0.0004, 0.03), indicating that income inequality was associated with a greater increase in anxiety scores during COVID-19. The adjusted results indicate that the association between income inequality and adolescent anxiety persisted and was heightened at the onset of COVID-19. Future studies should use quasi-experimental methods to strengthen this finding. The current study can inform policy and program discussions regarding the effects of the COVID-19 pandemic and pandemic recovery for young Canadians and relevant social policies for improving adolescent mental health.

The distributional impact of local banking. Evidence from the financial and sovereign-debt crises

This paper investigates whether local cooperative banks played a role in mitigating income inequality within Italian municipalities following the main crises that marked the European landscape from 2008 to 2015, namely the financial and sovereign-debt crises. Our empirical findings indicate that, despite the overall rise in income inequality during the post-crisis periods, municipalities hosting at least one cooperative bank branch experienced a comparatively smaller increase. This mitigating effect on income inequality is not observed in the case of non-cooperative banks. Furthermore, the size of the cooperative banking sector emerged as a significant factor in shaping income distribution: municipalities characterized by larger amounts of cooperative banks loans and deposits displayed lower levels of income inequality. The distributional impact of cooperative banks following the two crises was particularly pronounced in smaller municipalities, and where the degree of financial and industrial development was higher.

Does Financial Development and Corruption reduce the level of Income Inequality? Evidence from Malaysia

Income inequality is an enduring issue and an important one to address, especially in the new era of digital transformation, as it is a crucial element in promoting persistent income inequality. The theory is that while financial development promotes economic growth, the mixed explanations of previous studies show that this does not always help low-income people in emerging economies. Moreover, the effects of globalization may reinforce motives and increase opportunities for international corrupt practices. It is, therefore, crucial to explore how corruption can be motivated by ineffective rules governing cross-border crimes and how technology can open up new avenues for corrupt behavior, for example by making it easier to find victims, accomplices and money. Profound socio-economic changes can also provide incentives and opportunities for corruption. This study examines how corruption and financial development affect the wealth gap in a developing country like Malaysia over the period 1995 to 2021. The empirical results show that financial development has a positive impact on income inequality. Moreover, the result also shows that corruption control is an insignificant determinant of per capita income in Malaysia. Even though the growth of the financial sector has led to a variety of outcomes, it has only helped to reduce income inequality. Income inequality is negatively and significantly affected by the interaction between financial development and anti-corruption. It is therefore important to promote financial development, prevent corruption and increase government transparency as these factors can promote sustainable economic development and resilience.

Impact of Natural Disasters on Household Income and Expenditure Inequality in China

Natural disasters have been demonstrated to cause devastating effects on economic and social development in China, but little is known about the relationship between natural disasters and income at the household level. This study explores the impact of natural disasters on household income, expenditure, and inequality in China as the first study of this nature for the country. The empirical analysis is conducted based on a unique panel dataset that contains six waves of the Chinese Household Income Project (CHIP) survey data over the 1988–2018 period, data on natural disasters, and other social and economic status of households. By employing the fixed effects models, we find that disasters increase contemporaneous levels of income inequality, and disasters that occurred in the previous year significantly increase expenditure inequality. Natural disasters increase operating income inequality but decrease transfer income inequality. Poor households are found to be more vulnerable to disasters and suffer significant income losses. However, there is no evidence to suggest that natural disasters significantly reduce the income of upper- and middle-income groups. These findings have important implications for policies aimed at poverty alleviation and revenue recycling, as they can help improve economic justice and enhance resilience to natural disasters.

Analysis of Poverty Level and Income Inequality of Vegetable Farming Households in Ngadirejo Village, Pasuruan District

The high production of vegetable commodities in Ngadirejo Village, Tutur District, Pasuruan Regency is not comparable to the level of welfare of vegetable farming households. This study aims to identify the various sources of household income of vegetable farmers, analyze their income and its contribution to total income. The total sample of 85 farmer households was taken using the simple random sampling method with the assumption that vegetable farming households are homogeneous. To analyze the data used (1) quantitative descriptive (2) Sajogyo's poverty theory approach, and gini ratio analysis. The results showed that the sources of household income for vegetable farmers varied, from on-farm and non-farm activities. This income is classified as high which is indicated by the high percentage of achievement, namely 81.52% of total income. This amount is above the Regional Minimum Wage (UMR) of Pasuruan Regency. The poverty rate for vegetable farming households is in the moderate category, with a percentage of 76.5%. The level of income inequality based on the calculation results of the Gini Ratio is at a low level with a Gini ratio value of 0.18.

Association of census-tract level gentrification and income inequality with 6-year incidence of metabolic syndrome in the Hispanic Community Health Study/Study of Latinos, an epidemiologic cohort study

BackgroundMetabolic syndrome varies by socio-demographic characteristics, with younger (18–29 years) and older (50–69 years) Hispanic/Latino having higher prevalence compared to other groups. While there is substantial research on neighborhood influences on cardiometabolic health, there are mixed findings regarding the effects of gentrification and few studies have included Hispanic/Latinos. The role of neighborhood income inequality on metabolic health remains poorly understood. ObjectivesExamined associations of neighborhood gentrification and income inequality with metabolic syndrome (MetSyn) using data from the Hispanic Community Health Study/Study of Latinos (HCHS/SOL). Design, Setting and ParticipantsThe HCHS/SOL is a community-based cohort of adults of Hispanic/Latinos (aged 18–74). Analyses included 6710 adults who did not meet criteria for MetsS at baseline (2008–2011) and completed the visit 2 examination (2014–2017). Poisson regressions estimated odds ratios (IRR) and 95% confidence intervals (CI) for neighborhood gentrification and change in income inequality with MetSyn incidence. Main outcome and exposure measuresGentrification was measured with an index that included changes (2000 to 2006–2010) in education, poverty, and income. Change in neighborhood income inequality (2005–2009 to 2012–2016) was measured using the Gini coefficient of income distribution. MetSyn was defined using National Cholesterol Education Program Adult Treatment Panel III criteria. ResultsAmong 6647 Hispanic/Latino adults, 23% (N = 1530) had incident MetSyn. In models adjusted for socio-demographic, health insurance status, and neighborhood characteristics, gentrification (IRR, 1.00, 95%CI, 0.96–1.03) and income inequality change (IRR, 1.00, 95%CI, 0.99–1.00) were not associated with MetSyn at visit 2. There was no association between cross-sectional income inequality (2005–2009) and MetSyn at visit 2 (IRR, 0.97, 95%CI, 0.82–1.15). ConclusionNeighborhood gentrification and income inequality change were not associated with incidence of MetSyn over 6 years among Hispanic/Latino adults. This study demonstrated that income-based residential changes alone may not be sufficient to explain neighborhood influences on health outcomes among this population.

INCOME INEQUALITY, CLIENTELISM AND GOVERNANCE: IMPLICATIONS FOR SOCIOECONOMIC DEVELOPMENT IN WEST AFRICA.

Genuine redistribution of income is usually not commonplace in underdeveloped democracies. Instead, politicians in these democracies often target private, excludable and reversible benefits at the poor in exchange for electoral support. This electoral strategy often results in a situation where maintenance of political power or re-election becomes the focus of public policies instead of public welfare. This study investigated the main and interaction effects of income inequality and clientelism on government effectiveness in West African Countries from 1996 to 2020. The study objectives were achieved using pooled mean group (PMG) approach of the panel autoregressive distributed lag (ARDL) estimation technique and the Dumitrescu Hurlin panel causality test. Findings from the study revealed that clientelism enhances government effectiveness at higher levels of income inequality but inhibits government effectiveness at lower levels income inequality. The study findings also revealed positive relationship and uni-directional causality between income inequality and clientelism. The study concluded that government effectiveness which thrives on lower levels of income inequality and clientelism is beneficial to socioeconomic development; and that socioeconomic development and government effectiveness is interdependent and mutually reinforcing.

Does inflation worsen income inequality? A meta-analysis

Despite extensive econometric evidence, the research literature has been unable to draw firm conclusions regarding the effect of inflation on income inequality. In this paper, we apply meta-regression methods to a novel data set of 1767 estimates reported in 124 published studies that investigate the effect of inflation on income inequality. We distinguish between estimates that examine the effect of inflation on levels of income inequality and those that examine the effect of inflation on differences of income inequality. For level estimates, not controlling for moderator variables points to mild publication bias in favor of positive estimates (i.e., the current literature favors publishing studies that find that inflation increases income inequality), but publication selectivity does not hold once we control for a set of moderator variables. For difference estimates, mild publication bias in favor of negative estimates is found only once we control for moderator variables. In addition, our results suggest that inflation has a (small-to-moderate) inequality increasing effect for both level and difference estimates. Furthermore, we show that several factors influence reported estimates, including researcher choices concerning the measurement of inflation and inequality, the characteristics of data and estimation methods, and controlling for other components of inequality.

The Nexus Between Military Spending and Income Inequality in Brics Nations

ABSTRACT: There are contradicting views regarding the casual nexus between a country's military spending and its nation's income inequality. Military spending is a critical component of government budget and can simply crowd out transfer payments, needed to improve income inequality. However, these payments can also stimulate a demand that can enhance the income prospects of the low-income earners. So, the association between military spending and income inequality is a vital question. The aim of this study is to examine the relationship between military spending and income inequality for BRICS countries (Brazil, Russia, India, China and South Africa). We used panel data extracted from different sources such as World Bank's World Development Indicators and Penn World Tables. This is the first study that disaggregate the data and compute the results for the full sample (all BRICS countries taken together) and for sub-samples for countries with military expenditure of about 2% of GDP (India, china and Russia) and countries with military expenditure of less than 1% of GDP (that is, South Africa and Brazil). Thus, to unravel the influence of military spending on income inequality, pool mean group (PMG) or panel autoregressive distributed lag (PARDL) approach was applied for the period from 1990–2017 for BRICS nations. Overall, the empirical result for the pooled sample established an inverse relationship between military expenditure and income inequality. A percentage change in military expenditure result in income inequality reduction within the BRICS community. The estimated coefficient of GDP per capita, show that a percentage increase in GDP per capita in the long run will lead to about -0.209756 reduction in the level of income inequality and statistically significant at 1% level. When data was disaggregated to reflect the BRICS countries whose military expenditure was about 2% of the national budget (i.e. Russia, China and India), the study found that military expenditure had a negative influence on income inequality in the long run equation. Based on the outcome of this empirical work, we recommend for policy makers should focus more on the policies which can improve economic activities within the BRICS nations and ultimately reduce income inequality.

Inequality and informality revisited: The Latin American case

Despite the striking presence in many developing economies of the two distinctive features of high levels of income inequality and significant informal employment, the literature addressing the relationship between these features is scarce, especially for Latin America. In this paper, we highlight the ambiguous relationship between inequality and informality by identifying the various factors that may affect it. We then empirically test this relationship using panel data pertaining to Latin America between 1990–2018. In these context‐specific conditions, our findings reveal a positive association between formalization in the labour market and labour income equality.

Economic policy uncertainty and income inequality: unveiling the effects of friendly business environment

AbstractRecent pandemic in the form of COVID‐19 has been associated with increasing income inequalities because of high uncertainty around the globe. As a result, we examined the nexus between economic policy uncertainty (EPU) and inequality and how this relation is moderated by friendly business environment reflected by ease of doing business (EODB). To understand the relation among the different dimensions several techniques like fixed effects model, Driscoll and Kraay, and panel quantile regression were employed for a sample of 20 countries ranging for the period of 12 years. Our findings show that EPU contributes to higher levels of overall income inequality (Gini‐Index) and the results are heterogenous across countries, however the concentration of wealth among top 10% rich people gets reduced with increased EPU. Additionally, we find EODB moderating the impact of EPU on income inequality by mitigating the adverse effects of EPU on income inequality. Finally, we combined the results across different proxies and models to propose suggestive policy recommendations.

Digital Economy, Industrial Structure and Income Inequality

As a distinctive feature of contemporary social development, digital economy will inevitably affect the typical fact of income inequality. This paper theoretically sorts out the influence mechanism between digital economy, industrial structure and income inequality, and conducts empirical research based on cross-border panel data from 49 countries from 2010 to 2020. The results show that the development of digital economy significantly alleviates income inequality. The digital economy indirectly narrows the income gap by promoting the advanced and rational industrial structure; The mitigating effect of the digital economy in countries with higher levels of income inequality is more pronounced than in countries with low levels of income inequality, but when the country's income distribution falls into extreme inequality, the positive effect of the digital economy in reducing income inequality is minimal.

Modelling agricultural innovations as a social-ecological phenomenon

Agricultural innovations involve both social and social-ecological dynamics where outcomes emerge from interactions of innovation actors embedded within their ecological environments. Neglecting the interconnected nature of social-ecological innovations can lead to a flawed understanding and assessment of innovations. In this paper, we present an empirically informed, stylized agent-based model of agricultural innovation systems in Mali, West Africa. The study aimed to understand the emergence of food security and income inequality outcomes through two distinct model structures: top-down, aid-driven (exogenous) innovation and bottom-up, community-driven (endogenous) innovation. Our research questions were: i) How does the inclusion of social-ecological interactions in the model affect food security and income inequality outcomes? ii) How do exogenous and endogenous mechanisms influence food insecurity and income inequality? iii) What are the conditions under which exogenous and endogenous mechanisms would improve food security? The structural design of the model was based on a combination of theory, empirics, and mapping of social-ecological dynamics within innovation systems. Using the Social-Ecological Action Situation framework, we mapped the social, social-ecological, and ecological interactions that jointly produce food security outcomes. The exploratory model analysis reveals three key insights: i) Incorporation of social-ecological interactions influences model outcomes. Scenarios with social-ecological interactions showed a stronger relationship between income inequality and food security, lower levels of food security, and higher levels of income inequality than scenarios with social interactions. ii) Endogenous mechanism leads to higher food security and income inequality than the exogenous mechanism. iii) Bidirectional outreach is more effective than unidirectional outreach in improving food security. Inclusion of social-ecological dynamics and interactions such as the role of climate risk perception, social learning and formation of innovation beliefs and desires is key for modelling and analysis of agricultural innovations.

Learning income levels and inequality from spatial and sociodemographic data in Germany

This study explores the potential of predicting income inequality and income levels from attributes of the built, natural and social environment in Germany. Furthermore, it investigates differences in explanatory variables and estimation accuracy for municipalities with different social and spatial structure profiles. We use income tax data, the 2011 national census, and spatial data from various sources. The explanatory variables capture the spatial variation within the area of interest of characteristics of both the residents and the living environment. Our models explain 54% of the variability in inequality and 73% of the variability in median income levels for a sample of municipalities covering 97% of the country's population. Performance increases for the subsample of municipalities with at least 10,000 inhabitants, attaining 63% for inequality and 80% for income levels. Income inequality and top incomes are better identified in Western, urban, or central locations, while median income is best estimated in Eastern, rural and peripheral locations. The most important predictors are derived from attributes such as nationality, religious affiliation, household composition, residence construction year, as well as the size and density of residences and overall building stock. Our findings further the idea that the joint spatial analysis of population and the built environment can greatly improve our understanding of socioeconomic phenomena—at regional and local levels—beyond conventional data sources.

Income inequality and systemic banking crises: A nonlinear nexus

Motivated by Rajan’s work, we propose that income inequality and systemic banking crises have a nonlinear nexus. In addition to examining the linear “Rajan effect,” we propose a “Kuznets effect” based on an assumption that income inequality has a nonlinear impact on growth, conditional on the stage of economic development, and thus plays a nonlinear role in modeling crises. We test the existence of this nexus using a sample covering 172 economies for a period of fifty years. We confirm that the relationship is U-shaped and identify the threshold level of income inequality that is beneficial for financial stability. Additionally, the U-test and area under the receiver operating characteristic (AUROC) statistics confirm that nonlinearity, and our model has good predictive performance of forecasting. Furthermore, the results of our panel regressions are consistent and are robust to several tests. We then identify the Rajan and Kuznets effects using a two-step test. We conclude that the impact of income inequality on the occurrence of systemic banking crises is U-shaped.

ANALISIS SISTEM PEMBERIAN UPAH TERHADAP TINGKAT KESEJAHTERAAN EKONOMI KELUARGA BURUH TANI KARET DI DESA BATURADEN

In the midst of unstable rubber prices, rubber farm laborers in Baturaden Village still depend on the wage system that is applied. There are two categories of wage systems, the first 1:1 and 1:2. Of course there is a classification in determining the two wage systems which both have advantages and disadvantages. The purpose of this study is to determine the level of family economic welfare and income inequality between farm laborers with a 1:1 and 1:2 wage system. The research location was purposively selected because most of the people in Baturaden Village work as farm laborers. The research method used was survey method with sampling method using stratified random sampling. Data collection used primary data obtained from interviews and secondary data collected from BPS, Baturaden Village Office, etc. The data was processed using the 2015 BPS indicators to measure the level of welfare and the gini ratio to measure the level of income inequality among farm laborers. Based on the results, it was found that the welfare level of each farm laborer was moderate and so was the income inequality which was also in the moderate category. This is because farm laborers have turned their brains to look for side jobs to meet the economic needs of their families. because if they continue to rely only on income as rubber farm laborers they claim to have difficulty meeting household needs where the price of basic goods is getting more and more expensive.