Income Redistribution Policies Research Articles

ANALISIS PENGARUH PERTUMBUHAN EKONOMI, PENDIDIKAN, DAN TINGKAT PENGANGGURAN TERHADAP KEMISKINAN DI INDONESIA TAHUN 2013 - 2022

This study examines the impact of economic growth, education, and unemployment rates on poverty in Indonesia. While numerous studies have explored these relationships, this research aims to fill the gap by utilizing recent data and the Random Effect model for panel data analysis. The objective is to understand how these variables influence poverty levels and to provide relevant policy recommendations. The methodology includes t-statistics to test the partial effects and F-statistics to test the simultaneous effects of the independent variables on the dependent variable. The findings indicate that economic growth does not significantly affect poverty, whereas education and unemployment rates have significant impacts. The conclusions suggest the importance of income redistribution policies, improving access to and quality of education, and job creation in reducing poverty. This research contributes by highlighting the crucial roles of education and unemployment in the context of poverty alleviation in Indonesia and proposes evidence-based policies to support more inclusive development.

Five worlds of social reproduction after the new millennium: placing transitional China in a three-dimensional model of social reproduction

Since the late 2000s, China has accelerated reconstruction of the welfare state against the backdrop of the second transition. Following a typological approach, this study proposes an analytical framework for assessing varieties of social reproduction before delving into a comparative look at China’s national institutional framework, in which China is regarded as a transitional economy and a late bloomer. As represented in three dimensions, countries have production regimes that diverge in the degree of coordination, welfare regimes that differ in the degree of decommodification, and labor reproduction regimes that vary in the degree of depatriarchalization. We investigate the convergence and divergence of advanced economies, transitional economies, and the emerging economies of East Asian countries. Hierarchical cluster analysis and a three-dimensional map illustrate the varieties of regimes at the intersections of production, welfare, and reproduction. With the help of institutional complementarities, five worlds of social reproduction are distinguished: the late blooming, the liberal, the catch-up/transitional, the conservative, and the social democratic. China’s production regime converges with that of continental Europe and Post-Socialist societies based on institutional arrangements of nonmarket coordination; however, limited income maintenance and redistribution policies, the absence of family-friendly policies, and the regendering of the division of labor make China’s institutional mix appear more compatible with East Asian societies than Western ones. The institutional complementarities between the welfare and labor reproduction regimes reveal a social reproduction scenario that is less than purely late blooming.

Analysis of the Effect of Structural Transformation of The Economy

This study aims to analyze the impact of economic structural transformation on economic growth, income inequality, labor distribution, and community welfare. The method used is a literature study, by reviewing various academic literature, government agency reports, and case studies of countries that have undergone structural transformation. The results show that economic structural transformation generally increases economic growth and productivity through labor shifts from the primary sector to the secondary and tertiary sectors. These sectors tend to be more productive and efficient, resulting in increased output and new economic opportunities. However, these positive impacts are often accompanied by rising income inequality, as the industrial and service sectors offer higher compensation than the primary sector. In addition, this transformation brings significant changes to labor market dynamics, requiring new skills that the primary sector workforce may not possess, thus risking increased unemployment and skills gaps. From a social perspective, the structural transformation of the economy may lead to lifestyle changes and rapid urbanization, leading to infrastructure stress and social disintegration. To address these challenges, the study recommends a range of policies, including training and education programs that focus on inclusion, as well as income redistribution policies to reduce inequality. In conclusion, the structural transformation of the economy presents significant growth opportunities, but requires an inclusive and sustainable strategy to ensure its impact is felt equally across society. This study provides relevant recommendations for policymakers in managing economic structural transformation with a balanced approach between growth and social inclusion.

자녀가 부모에게 제공하는 조직적⋅재무적 살림살이의 관계 연구

This study aims to elucidate the influence of sharing organizational housekeeping provided by adult children to their parents on sharing financial housekeeping, and to examine how this relationship theoretically and empirically varies with parental assets. Financial housekeeping sharing refers to the partial or complete use of household income by members together, while organizational housekeeping sharing can be defined as sharing food, having meals together, and sharing living spaces. To derive hypotheses, this study developed theoretical models on financial and organizational housekeeping sharing and their relationship with maximizing utility in households with children. Analysis was conducted using data from the 7th (2018) and 8th (2020) waves of the Korean Longitudinal Study of Aging. The main findings of this study are as follows. First, as assets increase, sharing financial housekeeping decreases. Second, when organizational housekeeping support reaches a certain level, an increase in such share leads to a decrease in sharing financial housekeeping. Third, higher parental assets result in a diminishing negative influence of amount of sharing organizational housekeeping on that of sharing financial housekeeping. The analysis results suggest that as adult children provide more non-monetary resources to parents, the amount of financial resources they provide decreases. However, when parents have substantial assets, there seems to be little substitution effect between organizational housekeeping sharing and financial househousekeeping sharing. Based on the empirical analysis results, this study suggests the need to expand the criteria for recognizing parental support in income redistribution policies to include cases where households, despite not cohabiting, share financial and organizational housekeeping and jointly manage their livelihoods.

Redistribution Methods for Income Equality in the United States


 
 
 
 Redistribution for income equality is a contentious issue, with advocates citing increased economic stability and skeptics fearing potential negative impacts on economic growth. The United States (U.S.) faces notably high income inequality compared to the Organisation for Economic Co-operation and Development (OECD) average, with wealth concentrated in the top brackets. This paper critically examines the existing U.S. redistribution methods, including the taxation system and welfare programs, highlighting challenges such as the lack of tax progressiveness in top brackets and limited redistribution compared to European counterparts. Based on this overview, the study evaluates alternative redistribution strategies, including wealth and business taxes. The paper compares theory with insights from pilot programs in other countries. Finally, the paper argues for a universal basic income (UBI) set at per-capita welfare spending, positing that this approach can empower individuals to escape poverty traps, enhance productivity, and introduce a choice mechanism for welfare consumption. Ultimately, this research seeks to propose the most effective and feasible income redistribution policies for the U.S. to bridge the income inequality gap.
 
 
 

The limits to redistribution in small open economies: the case of Argentina

The specialized literature on the political economy of income redistribution in Argentina usually focuses on economic limits. It discusses the incompatibility between redistributive policies and the external balance or their effect on the long-term growth rate. However, less attention has been paid to the political resistance exerted by the winners of international trade to sharing their gains and to the role of financial integration. In this paper, we develop a model, framed in the modern revival of Classical theory, of a small open economy with differential rent to account for these factors. First, we include interests as an income category to assess the impact of financial integration. Second, we introduce the concept of ‘political stalemate’ – the resistance of productive classes to economic policies that go against their economic interest. We show how financial integration and the political resistance of landowners are behind the failure of income redistributive policies in favor of workers. In this context, we analyze the necessary economic and political conditions for such policies to succeed.

Chinese Entrepreneurs Preference in Income Redistribution Policy

This paper delves into an intriguing phenomenon: the low preference for income redistribution policies among Chinese entrepreneurs when compared to other employment statuses in China. Understanding this unique policy preference is crucial for policymakers aiming to implement effective socio-economic strategies. Drawing comprehensive insights from an array of existing studies and utilizing data from the World Value Survey (WVS), we proposed three hypotheses. These hypotheses were centered around entrepreneurs' education level, their attribution of success to effort or luck, and their inherent trust in the government, respectively.The WVS data supported two of these hypotheses. Firstly, entrepreneurs in China tend to hold the belief that success is mostly attributed to effort rather than serendipity. This belief affects their preference for redistribution policies. Secondly, among Chinese entrepreneurs, there is a lack of confidence in the government's in general, which may extend to their skepticism regarding the government's aptitude in overseeing fair income redistribution.

소득재분배정책은 소득 불평등을 완화하는가?

The purpose of this study is to determine the impact of income redistribution policy, which is a government intervention to alleviate income inequality. To achieve the purpose of this study, data provided by various organizations such as OECD, World Bank, and WID were collected to form panel data consisting of 17 years of 33 countries.
 The results of confirming the relationship between income redistribution policy and income inequality through the differential moment method of the dynamic panel model using the relevant data are as follows. First, cash benefit spending was found to reduce income inequality. Second, the interaction between direct and indirect taxes and cash benefit spending was found to reduce income inequality, but was not statistically significant. Third, the interaction between direct taxes and in-kind benefit spending was found to deepen income inequality.
 Based on these key analysis results, we proposed improvements to existing social security policies, proposals for new social security policies, and directions for income redistribution policies that take into account the relationship between social security policies and tax policies in order to alleviate income inequality in the future.

기업의 사회적 책임(CSR)을 고려한 소득재분배 정책

기업의 사회적 책임(CSR)을 고려한 소득재분배 정책

Why the Equalizing Effects of Democracy Do Not Work

Meltzer and Richard (1981) argued that democracy mitigates income inequality through redistribution if democracy gives more people the right to vote, regardless of income level, and if the political system reflects the interests of the lower-income class earning below median income. According to the Meltzer and Richard model, the spread of democracy globally over the past 40 years should have lowered global income inequality; however, the validity of the model has not been borne out in reality as income inequality has risen in nearly every country. This study refers to prior political and economic research to model why, unlike the Meltzer and Richard (1981) hypothesis, redistribution policies under democracy have failed to adequately counter widening income inequality. By analyzing a variety of scenarios — including captured democracy, policy regime, corrupt government, absence of a political party representing lower-income class interests under a two-party system, and class betrayal voting through identity cleavages — this study finds that even after income redistribution policies are implemented, income inequality may still end up worse than otherwise would have been expected in a democratic system.

Time-varying causality between income inequality and ecological footprint in Turkey.

This paper investigates the relationship between income inequality and environmental degradation for the case of Turkey between 1987 and 2017 through the bootstrap causality method that changes over time. The study used the GINI coefficient to denote income inequality and ecological footprint (EFP) to represent environmental degradation. According to the analysis results, a causal relationship has been determined for Turkey from GINI to EFP between 2002 and 2015 and from EFP to GINI between 2002 and 2008. Thanks to the method used in the analysis, it was concluded that GINI-affected EFP positively between 2002 and 2005 and negatively between 2006 and 2015. Between 2002 and 2005, Turkey endured a difficult period of restructuring after two major banking crises in 1999 and 2001. The rapid development, especially in industry and urbanization, caused environmental degradation in this period. Between 2006 and 2015, the central dynamic of Turkey's growth trend was the finance sector, and rapid privatizations were realized. Nevertheless, the income justice improvement in this period negatively impacted the environment due to consumption and production habits. Policymakers should evaluate Turkey in its economic reality and produce policies accordingly. Environmental awareness should be increased in the production and consumption activities of all segments of society, benefiting from the developments in income distribution. The ecological impact of the income redistribution policy, along with its market and social consequences, needs to be evaluated.

Welfare State: where it went yesterday, and what to do tomorrow

Social state as a mechanism for ensuring a decent level and quality of life for population has always been in the focus of scientific interests of N. M. Rimashevskaya. In memory of the famous scientist, the article presents an analysis of what happened to the social state in Russia in the past three decades, and argues the need to overcome the existing negative trends leading to its dismantling. Conclusions and recommendations are based on a study of the history of the formation of various models of welfare state, the operation of its economic mechanism, modern challenges to welfare state, as well as analysis of the Russian legislation, budget statistics, and results of sociological studies on the impact of reforms in the social sphere on the level and quality of life of Russians. It is shown that in the formation of a welfare state in the post-Soviet Russia, three stages can be distinguished, differing in the economic capabilities of the state and imperious rhetoric, but united by neoliberal ideology manifested in the desire to reduce social spending and commercialize the social sphere. The reduction of social obligations of the state forces citizens to independently decide on the issues of acquiring housing, medical treatment, and material support for old age. In conditions of low incomes, this pushes people to the financial market, in the development of which the state is interested, that fully fits into the mainstream of financialized capitalism and neoliberal ideology. The far from pleasing socio-demographic and economic indicators demonstrated by Russia against this background show the need for a turn towards the true development of a welfare state, and the events of early 2022 set this task with the utmost urgency. The article outlines the key components of the proposed pivot, related to rejection of the neoliberal dogmas about the negative impact on economic growth of large-scale social spending and income redistribution policies based on progressive income taxation, about selective social policy as an allegedly effective tool to combat poverty, etc.

Revisiting the effects of natural resources on income inequality in Sub-Saharan Africa

PurposeThis study aims to analyze the effects of natural resource rents on income inequality.Design/methodology/approachThis study uses a panel quantile regression (QR) approach for 42 Sub-Saharan African (SSA) countries over the period 1998–2018.FindingsThe results show that natural resource rents have a negative and statistically significant effect on income inequality. Regarding the types of resources, the results show that coal rents increase inequality, while forestry and oil rents reduce income inequality. The results also show that the effects of mining and gas rents vary along the income inequality distribution. Finally, the results reveal a negative and significant effect of natural resource rents on income inequality in all sub-regions except Southern Africa.Practical implicationsThe results suggest that the SSA Governments should intensify the implementation of income redistribution policies such as family allowances to poor families with multiple children and public sector job creation. SSA policymakers should also increase access to electricity, and internet, and allocate a portion of oil revenues to create an intergenerational sovereign wealth fund.Originality/valueFirst, few studies have analyzed the effects of various types of natural resource rents on income inequality. To this end, this study used the QR method to examine the impact of natural resource rents on inequality, by laying emphasis on various types of natural resources. This study takes into account the likely heterogeneity across countries that may exist when considering a sample such as SSA countries, by examining the effects in the different sub-regions that make up this part of Africa (Central Africa, West Africa, Southern Africa and East Africa).

Inequality, social protection policy, and inclusion: pertinent theories and empirical evidence

The available literature shows that there is a questionable direction of correlation between income inequality, redistribution policies, and economic prosperity. Meanwhile, there is also a striking claim that rising economic inequality is an immense concern. This paper, therefore, aims to summarize the antagonistic thoughts. Moreover, it presents a conceptual model and empirically measures the nexus of income inequality and social protection policy with inclusive development. The fixed effects regression of the panel dataset from 34 African countries reveals that income inequality is a negative driver but social redistribution policies are positive drivers of inclusive development in the long run. The control variables such as inflation, population growth rate, and carbon dioxide emissions stand against inclusion. However, the labour force participation rate, freedom score, life expectancy at birth, enrolment rate in secondary school and share of employment in industry show a positive correlation with inclusion.

The effects of asset prices on income inequality: Redistribution policy does matter

Income inequality in some developed countries has been steadily increasing over the past two decades, contrasting Kuznets' hypothesis that income inequality will improve after a certain income level. During that same period, asset prices rose significantly, blamed for increases in inequality. Are rising asset prices really the cause of rising inequality? Using the data of 32 developed countries across 1980–2018, this research empirically reveals that a country's stance toward redistribution significantly determines whether asset prices affect income inequality. The results indicate that an increase in house prices significantly increases income inequality in countries with weak income redistribution policies, while asset prices do not affect income distribution in countries with strong redistribution policies. An improvement in income inequality does not occur spontaneously but requires active government intervention.

Effect of Broadband Infrastructure on Rural Household CO2 Emissions in China: A Quasi-Natural Experiment of a “Broadband Village”

This paper explores how broadband infrastructure affects rural household carbon dioxide emissions (HCE). Based on the Environmental Kuznets curve hypothesis, a quasi-natural experiment of a “Broadband Village” (B&V) in China is conducted. Panel data from 9,790 rural households were collected as part of the China Family Finance Survey (CHFS). The consumer lifestyle approach was used to calculate HCE and a Difference-in-Differences (DID) model was used to analyze the impact of a B and V pilot project on rural HCE. The results of DID model showed that B and V significantly increases rural HCE, with an influencing coefficient 1.7. Subsequently, Threshold Model was utilized to examine the nonlinear relationship between household broadband penetration and rural HCE. The results revealed the threshold effect between rural household broadband penetration and rural HCE. Namely, the growth effect of B and V to rural HCE would be much weaker, if rural household broadband penetration goes above a threshold level, 31.32%. Our analysis provides important insights for policymakers to formulate digital village and income redistribution policies to support rural carbon dioxide (CO2) emissions reductions.

HUNGER IN BRAZIL: IMPACT OF PROTEIN-ENERGY MALNUTRITION ACCORDING TO GBD COMPARE TOOL

OBJECTIVE: Food and nutritional security is the realization of everyone’s right to regular and permanent access to quality food. In 2011 45% of children deaths in Brazil were related to malnutrition, which contributes to the maintenance of poverty and inequality. METHODS: Data were collected from GBD Compare tool, between 1990 and 2019. The theoretical foundation was carried out through research on database platforms. RESULTS: Reduction of the rates of protein-energy malnutrition through the years was evidenced, on average a reduction of 6,2% every 10 years in all ages. The period of significant drop in food insecurity coincides with the implementation of specific policies for this purpose, and income redistribution policies, such as the Bolsa Família. CONCLUSIONS: The data showed that the situation of malnutrition in Brazil has decreased over the years, however the structural cause of food insecurity has not been removed.

Market economy and China’s “common prosperity” campaign

ABSTRACT It is commonly believed that market economy and common prosperity are conflict and that the income redistribution policy is needed to achieve common prosperity. This article shows that this common belief is wrong. I argue that market economy is the only way for common prosperity. China’s future development depends on our beliefs. If we lose our faith in the market and introduce more and more government intervention in the name of common prosperity, China can only move towards common poverty.

Inequality and social polarization in Chilean municipalities

The social inequality associated with the current pattern of income distribution in Chile remains a subject of interest, as much remains to be learned about the trends in this connection in differing contexts. The aim of this study is to analyse the existing degrees of inequality and social polarization at the municipal (comuna) level arising from the current pattern of income distribution in the country. The measurements used for this purpose are autonomous per capita income and total per capita income. Seventy-eight municipalities in five regions of northern, central and southern Chile were studied. The results confirm the existence of a significant degree of inequality in terms of income distribution and a marked degree of polarization at the municipal level. These findings underscore the need for targeted income redistribution policies at this level to address inequality and polarization, both of which have been linked to social discontent stemming from the conflicts and social injustices that are created and intensified by these phenomena.

Income inequality and environmental degradation in Egypt: evidence from dynamic ARDL approach.

Over the past four decades, the Egyptian economy has suffered from both income inequality and environmental degradation. This dual problem raises the question about the nature of the relationship between inequality and the environment in a developing country like Egypt. In this regard, the study aims to examine the impact of income inequality on carbon emissions during the period 1975-2017. The analysis considers the ability of the political economy approach compared to the Keynesian trade-off approach to explain the inequality-environment relationship in Egypt. To do this, the novel dynamic autoregressive distributed lags approach is employed to capture the short-run and long-run relationships and to overcome the complications associated with the structure of the widely used autoregressive distributive lags model. The findings show that the relationship between inequality and CO2 emissions is not a trade-off. Rather, inequality leads to environmental deterioration in the long run, but there is no significant effect in the short run. In the long run, a 1% rise in the Gini coefficient increases CO2 emissions by 2.28%. These results support the political economy approach in explaining the inequality-environment nexus. Hence, the economic development policies adopted in Egypt during the past four decades have led to a negative impact on the environment. The study advises economic policy makers in Egypt to adopt income redistribution policies to reduce the severity of income inequality. Improving income distribution has a positive effect on the environment in Egypt.