Inequality In Countries Research Articles

More landless, more problems: Investigating the relationship between land and income inequality in Africa

Background: In pursuit of greater equality, African nations have implemented land reforms to increase land ownership among indigenous citizens. Despite these efforts, Africa remains one of the world’s most unequal regions.Aim: In line with the sustainable developmental goals (SDGs) 10 of the Equal World campaign, the study investigates how land ownership influences income inequality in African countries. We create a unique time series measuring landholders per square kilometre of agricultural land and explore its relationship with income inequality.Setting: The analysis covered the period of 2000–2020, using data from the World Bank gender data portal and World Bank Development Indicators to compute the land inequality index.Method: Conventional cointegration and advanced wavelet coherence techniques are employed to examine the influence of land ownership on inequality.Results: Traditional estimators reveal a long-run positive relationship between land ownership and income inequality, with bi-directional causality, implying that African countries with higher (lower) land concentration are associated with higher (lower) levels of inequality. However, wavelet coherence analysis reveals that only 8 countries exhibit a positive relationship, while 16 show a negative relationship, and 2 show an insignificant relationship. Notably, most countries with a negative (positive) relationship (did not) implement additional land reforms after 2000.Conclusion: We conclude that countries that fail to undergo continuous adjustments in land reforms risk experiencing a higher concentration of land ownership and income inequality. This study’s findings underscore the importance of land policy updates for long-term equity.Contribution: Unlike previous studies using the Gini Land coefficient, this study measure agricultural landowners per square kilometre, capturing the entire population and its relationship with income inequality.

Re-examining the Link Between Economic Growth and Income Inequality in Sub-Saharan African Countries: Do Natural Resource Endowments Matter?

Re-examining the Link Between Economic Growth and Income Inequality in Sub-Saharan African Countries: Do Natural Resource Endowments Matter?

REFLECTIONS ABOUT DOING ON-LINE QUALITATIVE RESEARCH DURING THE COVID-19 PANDEMIC AND THE ABSENCE OF PUBLIC POLICIES REGARDING THE RELATION BETWEEN DIGITAL VULNERABILITY AND HEALTH INEQUALITY

The social restriction imposed by the COVID-19 pandemic challenged traditional qualitative research methods (e.g., face-to-face interviews or in situ participant and non-participant observations), requiring researchers to adapt classic qualitative practices to this new scenario. In this article, we proposed a reflection on how online communications can produce rich, meaningful, intricate, and detailed qualitative data. For that, we initially explained the pre-pandemic context of our research and the changes that were necessary after the pandemic onset. Afterward, we explored how we decided to do online research and how we prepared ourselves to do so, explaining how our data was produced and sharing the experiences that resulted from this. We also explored how the social inequalities in underdeveloped countries, such as Brazil, and the lack of public policies regarding the relation between public health policies and digital vulnerability still put people in what we call digital insufficiency, which might implicate in the social researcher finding different ways to engage with the population studied. Finally, we reflected on how misconceptions about the capacities of the fieldwork (e.g., that it must be in-person) could diminish the potentialities of qualitative research. We suggested that qualitative methods should move from a conventional single-site location to multiple sites of observation and participation. This approach aligns better with a more situated and contextualized qualitative researcher interested in contemporary sociocultural changes.

Labour market impacts of the China shock: Why the tide of Globalisation did not lift all boats

The 1990s and 2000s saw a dramatic expansion in global goods trade. China rapidly emerged as the world's leading exporter while manufacturing employment in many high-income countries plummeted. Guided by textbook models that assumed frictionless labour markets and balanced trade, economists long maintained the view that trade had only modest labour market impacts and was not an important contributor to rising inequalities in high-income countries. We review recent evidence on the impacts of rapidly rising import competition from China on a broad range of outcomes in high-income countries. Import competition led to employment and wage losses that were heavily concentrated among the employees of exposed industries and individuals residing in local labour markets where such industries clustered, while consumer gains from lower goods prices were much more evenly distributed in the population. The disruptive effects of trade were particularly salient in countries such as the United States and the United Kingdom where a rapid growth of imports did not coincide with a commensurate expansion of own exports. Local labour markets facing greater import competition also experienced deteriorations in terms of health outcomes, crime, and family structures, and they became more likely to support far right politicians. We discuss several policy options to support the losers from globalisation.

Selective insensitivity to income held by the richest.

The misperception of income inequality is often touted as a critical barrier to more widespread support of redistributive policies. Here, we examine to what extent and why (mis)perceptions vary systematically across the income distribution. Drawing on data from four studies (N = 2,744)-including a representative sample and preregistered incentive-compatible experiments-we offer converging evidence that people specifically underestimate the amount of income held by the top of the income distribution. While this selective underestimation is likely driven by multiple mechanisms, including systemic factors, we find that cognitive biases contribute to the observed pattern of results. The rise of inequality in many developed countries has been documented before, and the fact that this growing inequality is largely driven by the outsized gains of the richest individuals may pose new challenges previously underappreciated: our theory and findings highlight that cognitive biases pose a key obstacle to people's recognition of the concentration of income among the richest individuals, and may potentially distort their preferences for redistribution. We conclude by discussing future directions for research and the importance of incorporating behavioral and cognitive limitations into the design of redistributive public policy.

Poverty, Inequality, and Social Protection in Ethiopia: A Policy Brief

In this brief commentary the author argues that social protection is not a useful approach to addressing poverty and inequality in low-income countries like Ethiopia. Instead, the author suggests focusing on wealth creation and the capability development approach to poverty reduction. To achieve this, the author proposes targeted state investment expenditure to enhance the productive capabilities of the economically vulnerable population. Besides, the social protection system should prioritize the design and implementation of livelihood improving investment programs, as in-kind or cash transfer support is not sustainable given the elevated level of economic vulnerability. The effectiveness of Ethiopia’s social protection system lies on improving coverage, targeting deserving individuals, and sustainable financing solutions.

Evaluation of the impact of the educational revolution in Peru and the gender wage gap, 2017-2021

Background Women’s educational attainment and their generation of value through education has increased the prospects for achieving economic equality between men and women. However, women continue to earn lower wages than men, reflecting growing inequality in several countries. Therefore, the objective of the study is to estimate the impact of education on the gender wage gap in Peru over the period 2017-2021. Methods Quantitative, explanatory study aimed at identifying the impact of education on the gender wage gap in Peru during the period 2017-2021. The research design is non-experimental and uses a time series that analyses the influence of the latent variable of education on the gender wage gap. This is a continuous variable to estimate the Tobit model. Results The results show that the gender gap in Peru exhibited a decreasing trend between men and women during the period 2017-2020, with an average reduction of 10% until 2020 due to the health crisis. The highest average salary was achieved by men in 2019, reaching S/2289.97 soles, while women reached an average salary of S/1368.85 soles. In the post-pandemic scenario for 2021, the gender gap increased by 3%, with men earning an average salary of S/1999.63 soles and women earning an average salary of S/1281.16 soles. The analysis from 2017-2021 shows that years of education had a positive impact on the gender wage gap in Peru based on the Tobit model estimation. Conclusions During the analysis period of 2017-2021, years of education had a positive impact on the gender wage gap in Peru, with the greatest impact occurring during the health crisis. The probability of women’s incomes improving with an increase in years of education was 2.35%, while for men, the highest impact was in 2018, with a probability of income improvement of 2.16% in terms of marginal effect.

The Role of Financial Development in Reducing Income Inequality in Selected Asian Countries

The present study investigated the effects of financial development on income inequality for three income level groups across 12 Asian countries (areas) from 1980-2020. The three groups comprised countries with low, moderate, and high economic development. Using the Quantile-on-Quantile (QQ) approach, The findings showed that the impact of financial development on income inequality differed across the income level groups of the 12 selected Asian countries. The results suggested that financial development exacerbated income inequality in underdeveloped countries, while for moderately developed countries, financial development promoted income equality. Except for South Korea, the other countries in the high economic development group showed that financial development exacerbated income inequality. Therefore, the impact of financial development on income should be examined by groups, in which moderately-developed countries could devote more attention to promoting income equality through reforms focusing on the development of financial diversification and the enhancement of financial depth.

Income inequality, governance quality, and environmental degradation in Asian countries: Does interaction of governance quality matter? Evidence from panel data

The objective of this research is to examine the effects of income inequality, governance quality, and their interaction on environmental quality in Asian countries. Time series data are obtained from 45 Asian countries for the period 1996–2020 for this empirical analysis. The research has performed various econometric tests to ensure the robustness and reliability of the results. We have addressed different econometric issues, such as autocorrelation, heteroskedasticity, and cross-sectional dependence, using the Driscoll-Kraay (DK) standard error estimation and endogeneity issues by the system generalized method of moments (S-GMM). The results of the study revealed that income inequality and governance quality have a positive impact on environmental degradation, while the interaction of governance quality with income inequality has a negative effect on it. In addition, economic growth, population growth, urbanization, and natural resource dependency are found to deteriorate the quality of the environment. The findings of the study offer insightful policies to reduce environmental degradation in Asian countries.

Dynamic effects of fiscal consolidations on income inequality in Sub-Saharan African countries

ABSTRACT This study explores the short-to-medium-term effects of fiscal consolidation on income inequality in 40 Sub-Saharan African countries from 1990 to 2021 by applying the quantile local projection method at the median. The study finds that periods of fiscal consolidation reduce inequality in the short run, with spending-driven consolidation having a positive effect on income parity, while tax-driven consolidations have an insignificant impact. The study concludes that the distributional effects of fiscal consolidation in SSA countries are “progressive,” implying that well-designed and targeted fiscal measures contribute to more equitable income distribution.

A Systematic Literature Review of Income Inequality in Central–Eastern European Countries

AbstractThis review offers a comprehensive perspective on income inequality literature in Central–Eastern European (CEE) nations, with a specific focus on six countries: Bulgaria, Romania, Poland, Hungary, Czechia, and Slovakia. By thoroughly examining existing research, this review uncovers the underlying factors and root causes contributing to varying income inequality levels and trends across CEE countries. The investigation is conducted through a systematic literature review and network analysis, focusing on the literature published since 1990, mainly on recent studies. The review is structured around three thematic frameworks (concept and measures, evidence, and causes). These three strands of the literature review not only offer a comprehensive picture of income inequality in CEE countries but also identify critical research gaps for further studies. The review underscores several critical areas for improvement within CEE studies. These include addressing gaps in geographical and temporal coverage, utilizing alternative measurements of income inequality, and investigating the causes of diverging trends in income inequality among CEE countries. Moreover, there is a pressing need to expand the understanding of the determinants influencing income inequality in these nations, which presents a significant opportunity for future research.

Does the digital economy promote or inhibit income inequality?

Digitalisation and technological developments are profoundly changing the socioeconomic structure of society and people's lifestyles, which may have a significant impact on the distribution of income among different groups of people. This study conducted a quantitative investigation into the impact of the digital economy on income inequality based on the skill bias theory. First, empirical model analysis showed that digital economy has a linear dampening effect on income inequality and that there is no non-linear relationship. Then, the study analyzed the mechanisms underlying this relationship, which revealed that mining and remittances suppress income inequality in the presence of digital economy, while government spending promotes income inequality. Finally, heterogeneity analysis indicated that the suppressive impact of digital economy on income inequality in capitalist countries is stronger than in ex-communist countries. These findings will not only help to achieve social equity, but also provide a strategic direction for economic development to make the dividends of the digital economy more inclusive.

Income Inequality, Institutional Quality, and Trade Openness: An Analysis from Selected Asian Countries

Income inequality with financial development has been observed in most of the Asian economies. A lot of major factors may strengthen this inequality in these countries. Despite discussions on this issue, the policymakers have not found harmony in this relationship. Considering this, we investigate the link between financial development, institutional quality, and income inequality by using panel data from 2008 to 2018. GMM results reveal that financial development, economic growth, and institutional quality lessen income inequality in Asian countries. It is concluded that more access to credit may lessen the inequality in Asian economies. So, there is a need to make easy the availability of credit facilities for the general public. Institutions should also play a positive and contributing role in decreasing income inequality. Finally, political and economic stability also plays an active and effective role by attracting more involvement in economic activities and trade openness.

Transforming Horizons: The Multifaceted Impact of Foreign Aid on Nigeria and Ghana's Fiscal Landscape

This retrospective study explored the multifaceted impact of foreign aid on the fiscal landscapes of Nigeria and Ghana. Through an exhaustive analysis of bilateral and multilateral aid flows, including grants, technical assistance, and loans, this research aimed to unveil how foreign aid influenced economic performance, addressing issues like poverty eradication, income inequality, and unemployment in both countries. Utilizing an ex-post facto research design, the study analyzed data spanning from 1981 to 2021, employing ARDL bounds tests and error correction models. The findings revealed distinct impacts of various types of aid on government expenditure and economic growth, demonstrating the complexity and nuanced effects of foreign assistance on the recipient countries' fiscal policies and economic outcomes.

Digitalisation and income inequality in Central and Eastern European countries

The COVID-19 pandemic has highlighted the importance of digital technologies in business and daily life. The paper aims to explore the theoretical and empirical aspects of the relation between digitalisation and income inequality in Central and Eastern European (CEE) countries between the years 2000-2020. It contributes to existing research on determinants of income inequality, focussing on the potential negative role of digitalisation as an unnoticeable driver of income inequality in CEE countries. To investigate the potential impact of digitalisation on income inequality, empirical analysis was performed for the sample of 10 CEE countries, namely Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic and Slovenia. The results of canonical correlation analysis indicated that the sets of variables related to digitalisation and inequality as a group are significantly related to each other and a strong correlation exists between them. The relative contribution of each indicator to each standardised function showed that the highest values of significant standardised coefficients were observed for income inequality indicators such as the top 10% share, the Gini coefficient, and the top 1% share, while in digitalisation measures, the highest value was observed for Internet users and fixed and mobile broadband subscriptions.

The Nexus Between Income Inequality and Environmental Degradation in ASEAN-6 Countries During 1992 – 2015 from Islamic Perspective

The Nexus Between Income Inequality and Environmental Degradation in ASEAN-6 Countries During 1992 – 2015 from Islamic Perspective

Does energy poverty contribute to gender inequality and environmental degradation in Africa?

Purpose This study aims to examine whether energy poverty impacts gender inequality and CO2 emissions in African countries with the biggest economies by gross domestic product (GDP) per capita from 1996 to 2020. Additionally, this study examines the existence of the gender Kuznets curve (GKC) and the environmental Kuznets curve (EKC) theories. Furthermore, it evaluates the connection between economic development and carbon emissions, on the one hand, and economic development and gender inequality on the other. Design/methodology/approach This study uses the augmented Dickey–Fuller and Phillip–Perron unit root tests to determine the degree of integration between the variables. It also uses the Pedroni and Fisher–Combine Johansen cointegration tests to assess a long-run relationship between the variables. The authors adopted the pooled mean group (PMG)-autoregressive distributed lag model and used the E-Views 12 software to run the analysis. Findings The empirical analysis approves the long-run correlation among the variables used in this study. Increased energy poverty and GDP increase CO2 emissions, whereas income square hurts CO2 emissions. These results are consistent with the EKC hypothesis, which proposes a non-linear relationship between CO2 emissions and economic growth in the studied areas (similar to an inverted U shape). Long-term foreign direct investment (FDI) has a negative correlation with CO2 emissions. On the contrary, energy poverty, GDPsq and FDI find a positive relationship with gender inequality, whereas GDP finds a negative association with gender inequality. The negative relationship between GDPsq and gender inequality establishes a “U”-shaped connection between income and gender inequality. Thus, it supports the hypothesis of the GKC. Therefore, this study proposes that decreasing energy poverty is vital for promoting a clean environment and mitigating gender inequality. Originality/value This study supports the hypothesis of the GKC. Therefore, this study proposes that decreasing energy poverty is vital for promoting a clean environment and mitigating gender inequality.

Analysis of Income Inequality in ASEAN Countries

This study aims to analyze income inequality in ASEAN countries. The variables in this study are income inequality as the dependent variable, FDI, GDP per capita, personal remittances, and economic openness as independent variables. The scope of this research is ASEAN countries from 2009 to 2021. This research uses panel data regression method. The estimation results in this study show that FDI and GDP per capita variables significantly affect income inequality in ASEAN. Meanwhile, personal remittance and economic openness have no significant effect.

The Influence of Economic Complexity Index on Income Inequality in G20 Forum Countries

This research examines the influence of the economic complexity index, GDP per capita, gross higher education participation ratio, government spending on education, and fertility rates on income inequality in G20 Forum member countries from 2010 to 2019. The dynamic panel data regression method with the two-step System Generalized Method of Moments (SYS-GMM) estimation technique is used to analyze the data in this study. The findings reveal that the economic complexity index, GDP per capita squared, government spending on education, and fertility levels have a negative and significant effect on income inequality. Meanwhile, GDP per capita and gross enrollment rates in tertiary education have a significant positive effect on income inequality. This study shows that the economic complexity index and the quality of human resources can reduce income inequality. Therefore, policies that focus on improving the quality of human resources need to be considered to encourage innovation, increase GDP per capita, and ultimately reduce income inequality.

Poverty Linked to Government Performance: Insights from Maluku Barat Daya and Halmahera Timur, Indonesia

This study aims to uncover the connection between government performance and poverty in a process tracing mechanism, utilizing documentation and archival records of Maluku Barat Daya and Halmahera Timur in East Indonesia, 2016-2019. Incorporating process-tracing as the method to tracing which linkage is a new approach in poverty discourse, which is the novelty of this study. Process tracing is not without challenges, considering that it requires the presence of the expected case-specific implications of its existence, which is constrained by the data availability. However, spatially speaking, the findings of this study provide valuable insights into Indonesia’s context as an archipelago nation and can be a reference for any country facing disparity and inequality. Poor government performance lowers the quality of education and infrastructure performance through the limited number of qualified civil servants, lack of good-quality data, non-optimal budget management, and lack of accountability. Poor education resulted in low technological advances, low examination results, and few good accreditation schools. In infrastructure development, the incapability of local government to provide essential services pushed people to survive on their resources and become more vulnerable to experiencing poverty. Therefore, this research concludes that government performance influences poverty reduction through education and infrastructure performance.