Inequality In Income Distribution Research Articles

On the issue of impact of income inequality on the socio-economic development of territories

The issues of economic inequality and justice were considered in the works of the philosophers of Ancient Greece. Over time, the problem of income inequality has not lost its relevance, which is confirmed by domestic and foreign studies. Until 2015, the capital of the Russian Federation had the highest value of the Gini index, which indicates a high degree of inequality in income distribution in the territory of this subject. Over time, the situation has changed, in particular, by increasing the incomes of the least well-off groups of the population, providing them with subsidies and payments. The purpose of the study is to analyse to what extent these changes have an impact on the socio-economic development of the region. With the help of econometric calculations, the degree of dependence between the equity index and the value of the gross regional product per capita has been determined. It is revealed that there is an inverse relationship between the considered indicators, that is, a reduction in income inequality has an impact on the growth of regional production. The high value of the coefficient of determination indicates the high quality of the constructed model. The possibility of using the simulation results in practice is confirmed by calculations of the average approximation error and the Fisher criterion.

The Consequences of Universal Basic Income

Universal Basic Income (UBI) has gained attention in both academic and policy circles. However, its implications are not fully understood. This paper develops a general equilibrium model with uninsured income risks to examine such implications. Multiple policy alternatives are considered under both deficit-expanding and deficit-neutral structures. If the UBI policy is not financed through additional taxation, its impact on measures of inequality is unclear. The consumption and income inequality decrease while wealth inequality rises. Deficit-neutral UBIs resolve this ambiguity as the higher marginal tax rates prevent the wealth inequality from rising, which leads to a more equal distribution of consumption and income. However, the aggregate effects are amplified. The income tax must be as high as 80% of the output to keep the deficit from expanding. The interest rate rises, and the output and capital-to-output ratio sharply fall as the precautionary saving motives are weakened.Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Is the Liraization Strategy of the Central Bank of Republic of Türkiye Successful?

This study aims to analyze the success of the “Liraization Strategy” introduced by the Central Bank of Republic of Türkiye. Liraization, the main component of unusual monetary policy, officially implemented from the beginning of 2022 to the second half of 2023. Using the policy texts of the Central Bank and literature review; regulations, tools and targets of the liraization strategy has been figured out. To evaluate the success of liraization, realization of the goals has been examined employing real data and graphical analysis. The outcomes indicate that the strategy has failed in price stability and financial stability. In addition, the current account balance has worsened. On the other hand, rising the share of TL in balance sheets of companies and bank via intensive regulations has caused to high cost on budget and the Central Bank. Also, market interventions to support TL have disrupted the market mechanism and relative prices; and have increased the inequality in income distribution.

Analisis Ketimpangan Distribusi Pendapatan pada Kabupaten/Kota di Provinsi Bali

Economic development aims to improve the well-being of the population, as reflected in the increase of the Human Development Index (HDI). Although the HDI in the regencies/cities of Bali Province has risen, income disparity persists. Reducing income distribution inequality can be achieved by creating decent job opportunities, lowering unemployment rates, and providing adequate income to ensure a good quality of life for workers. The objectives of this study are (1) To analyse the simultaneous effect of unemployment, economic growth and human development index on income distribution inequality in regencies/cities in Bali Province. (2) To analyse the partial effect of unemployment, economic growth and human development index on income distribution inequality in regencies/municipalities in Bali Province. The data used is secondary data, with 117 observation points. The analysis technique used is panel data regression model technique. The results showed that (1) Unemployment, economic growth and human development index simultaneously affect the inequality of income distribution in regencies/cities in Bali Province. (2) Unemployment and economic growth have a positive effect but not significant on income distribution inequality, while the human development index has a negative and significant effect on income distribution inequality.

Impacto macroeconómico de la dolarización en el Ecuador durante el período 2006-2023

The macroeconomic impact is crucial for determining the well-being of a country. Analyzing variables such as Gross Domestic Product (GDP), inflation, unemployment, investment, and foreign trade allows for an assessment of a nation's economic health and financial stability. This article aims to analyze the impact of dollarization in Ecuador between 2006 and 2023. Adopted in 2000 to stabilize the economy and attract foreign investment; dollarization presented monetary and fiscal policy challenges. Authors like Cachanosky and Alvarado highlight the challenges in fiscal control and the relationship between exports and external income. The study employs a quantitative methodology, with regression analysis and time series based on data from the Central Bank of Ecuador. The results show moderate GDP growth and gross investment, as well as fluctuations in liquidity and credit to the private sector, along with persistent inequality in income distribution. The conclusions indicate that while dollarization has contributed to stability, it has limited the country's monetary autonomy. Additionally, dependence on external factors, such as U.S. monetary policy, has affected Ecuador's economic stability. The importance of diversifying the economy, promoting policies that foster sustainable and equitable growth, and reducing vulnerability to external fluctuations is emphasized.

Analisis Pertumbuhan Ekonomi dan Ketimpangan Distribusi Pendapatan Provinsi Bali

This study aims to determine the Regency / City Classification in Bali Province based on the Klassen Typology, the condition of income distribution inequality between districts / cities, the relationship between income distribution inequality with per capita income, and whether the relationship forms the U-Reverse Kuznets Curve. This research is an analysis of secondary data obtained from BPS Bali Province. The analytical model used is Klassen Typology analysis, Williamson Index, Product Moment Correlation (Pearson). Klassen's Typology Results, Badung Regency and Denpasar City are included in Quadrant I area, Gianyar Regency is included in Quadrant III area, and the remaining 6 Regencies are included in Quadrant IV area. Furthermore, the Williamson Index Calculation in the Year of Observation shows that there is an imbalance in the Province of Bali which shows a downward trend. While the calculation result of Product Moment Correlation (Pearson) shows a very strong relationship between the Williamson Index and the Per capita GRDP and is negative, but the relationship does not form the Kuznets Curve to be a U-Reverse letter.

Corruption in Namibia: Examining the Nexus Between Survey-Identified Causes and Empirical Validation

This study investigates the causal relationship between the factors identified in the 2016 National Corruption Perception Survey Report and corruption levels in Namibia. By analysing data from 2000 to 2022, the Toda-Yamamoto VAR Granger causality test was employed to investigate the impact of greed, poor leadership and law enforcement, poverty (working poverty), and poor pay (compensation to employees) on corruption levels. The results revealed statistically significant causal linkages between greed, poor leadership and law enforcement, and poverty. Poor pay, however, showed no significant causal influence on corruption. These findings highlight the necessity of tackling issues such as equal income distribution, poverty, and governance inadequacies in anti-corruption initiatives. Targeted measures based on empirical evidence can effectively reduce corruption and increase transparency in governance. Additionally, conducting more recent corruption surveys in Namibia could yield up-to-date perceptions that could be adopted in similar country-specific studies elsewhere.

The Influence of Open Unemployment Rates, Inflation and Minimum Wages on Income Inequality in The North Sumatra Region

Income inequality is the existence of differences in income in a society, giving rise to real income inequality in society. As a result, the rich get richer and the poor get poorer. In fact, when it comes to income inequality, the more flexible wages are, the greater the impact on employment. However, inflexible wages, which are said to be an inability to respond to changing market conditions, lead to ever-increasing poverty and inequality. This research aims to determine the correlation between the influence of open poverty levels, inflation and minimum wages on income inequality in North Sumatra. The Central Statistics Agency (BPS) noted that the level of expenditure disparity between residents in North Sumatra has widened since September 2023. The Gini ratio, which measures this inequality, is recorded as high. BPS Based on North Sumatra data, this large deviation was caused by the increase in fuel prices at the beginning of September last year. The research method used is Multiple Linear Regression which is processed using eviews 10 software. The approach used in this research uses a quantitative approach with associative analysis, with a population from the North Sumatra BPS report for 2014-2023. The results show that the open unemployment rate and minimum wage have an effect on income inequality. Therefore, the solution offered is a policy of establishing equal distribution of employment income by opening job vacancies and training as well as equal distribution of salary income which is applied evenly in various regions so as to reduce income inequality in North Sumatra

The impact of technical change on income inequality in Vietnam

PurposeThe primary purpose of this study is to explore the effect of technical changes on provincial-level income inequality in Vietnam. The authors also investigate whether the quality of institutions and human capital level moderate this relationship.Design/methodology/approachThis research applies the fixed-effect and random-effect models on a balanced panel data set of 63 Vietnamese provinces/cities from 2010 to 2020.FindingsThe study’s empirical results show that technical improvement has a nonlinear influence on income disparity in Vietnamese localities. When the local level of technology is limited, technological change can mitigate income disparity. However, as local technological levels increase, inequality tends to rise. Moreover, the study also reveals that the quality of a province’s institutions and the level of human resources are factors that moderate the correlation between technological change and income inequality. For provinces with better institutional quality and/or better human resources, inequality tends to decline under the impact of technological change.Practical implicationsThe results of this study suggest that while encouraging technology advancement, localities should also ensure sustainable development, reduce income inequality and focus on improving institutional quality and human resources development.Originality/valueThere are increasing concerns about the impact of technical change on inequality in income distribution; however, empirical evidence on this relationship in developing countries remains scarce. This study is among the few attempts to examine this issue at the provincial level of a developing country considering the moderation effect of institutional quality and human capital level.

Pengaruh Payment Gateway dan Literasi Keuangan Terhadap Kinerja Keuangan Pada Pelaku UMKM di Kelurahan Kebonsari

MSMEs have an important contribution to Indonesia's economic growth by creating extensive employment opportunities and supporting a more equal distribution of income in society. This research aims to identify the impact of payment gateways and financial literacy on the level of financial performance of MSME players. This research applies an associative design and quantitative methods. Data collection was carried out by distributing questionnaires to MSMEs in Kebonsari Village. The results of this research show that both payment gateway (X1) and financial literacy (X2) have a positive and significant influence on the financial performance (Y) of MSMEs in Kebonsari Village.

The Criteria for Zakah Manager (Āmil Zakah), Qualification and Organizational Culture: A Review of Some Traditional Literature

Zakah is one of the pillars of Islam, which aims to be an instrument of equal distribution of income between the rich and the poor. In order to arrange, collect and distribute zakah property, it so called zakah manager (‘āmil) who works exclusively to take care of zakah. The command of a person who takes care of zakah is directly stated in the Qur'an (Surat At-Taubah [9]: 60). The role of zakah manager is one of the factors of success in the distribution of opinion in society. This paper aims to discuss in-depth analysis the criteria of zakah manager, it qualification and organizational culture in Islamic tradition. This paper is qualitative using documentation method in data collection. The review focuses specifically on the articles written in the areas of zakah management. It follows that the articles would be classified into four categories namely; the criteria for zakah manager, the appointement for zakah manager and its obligation, the qualification for zakah manager and its organizational culture.

Inequality in Africa: Does injustice matter?

AbstractThe following study aims to investigate the impact of injustice on income inequality in Africa between 2000 and 2020. Both male and female injustice levels are evaluated using gender‐specific scores to indicate the injustice suffered by both genders. The study utilized the Gini and Palma ratios as proxies for income distribution inequality. After addressing error term‐related problems with the Newey‐West Standard Corrected Error approach, the findings indicate that injustice is a significant contributor to inequality in Africa, especially for females, with little evidence of male injustice. The results are consistent for both middle and low‐income countries that adopted the French civil law and English common law systems to govern their institutions. Additionally, the study found that educational development and basic welfare maintenance contribute to reducing inequality in Africa, which is exacerbated by many barriers to political inclusion. To address the gender bias in income distribution, policymakers in Africa should design policies that provide equal access to justice for both male and female populations. The study also suggests adopting policies that enhance human capital accumulation and political inclusion in‐state activities to create a safe, just, and equal environment.

Innovation in Distribution of Wealth Through Zakat: Building Shared Prosperity by Applying Tafsir Qs. At-Taubah Verse 60

Whether it is recognized or not, there are many things in society problems related to the economy,especially not equal distribution of income between one group and another others that cause social and economic disparities.To overcome this problem, zakat is the obligation of every Muslim for those who have fulfilled the requirements to accomplish this, become an alternative solution for overcome this problem. In this case distribution Zakat funds are the most important part of building shared prosperity. But in this era of globalization of course. The distribution of zakat requires new innovations through application of QS interpretation. at-taubah verse 60 effectively, efficiently and relevant to the development of the times by doing various collaborations and modern distribution models. Tree The discussion in this article is the application of QS interpretation. At-Taubah verse 60 which emphasizes the concept of caring, justice and economic equality by combining new innovations to create a more effective system in building economic prosperity, of course can be realized by applying eight groups mustahiq who has the right to receive and utilize funds zakat.

Analysis of Determinants of Income Distribution Inequality in Indonesia

This study aims to analyze the factors that influence income distribution inequality in Indonesia. The analysis method uses quantitative descriptive analysis with secondary data, the analysis tool uses panel data regression using cross-section data, The research objects are the Provinces in Indonesia, and time series data, namely 2915-2022 with a total number of observations of 272 objects, then using tests related to panel data regression, the selection of chow test models, Hausman test, and multiple Lagrange tests, as well as using statistical F hypothesis tests and statistical t and coefficients of determination. The results show that the poverty rate has a positive and significant effect on income distribution inequality in Indonesia, economic growth has a negative and significant effect on income distribution inequality in Indonesia, information and communication technology has a negative and significant effect on income distribution inequality in Indonesia, and investment has a positive and significant effect on income inequality in Indonesia. While the other two variables such as the human development index and unemployment rate do not affect the inequality of income distribution in Indonesia

Finding Solutions to Productive Waqf Management Problems: A Case in Indonesia

Poverty is now a multifaceted problem as it is related to the inability to access and participate in society economically, socially, culturally and politically. According to the Indonesian Waqf Agency (BWI), Indonesia, which has the world's largest Muslim population, has great potential for waqf money estimated at Rp. 1.4 trillion as of March 2022, this figure has increased when compared to the waqf money that has been collected in the 2018-2021 period of Rp. 855 billion. With a very large Muslim population and high potential for raising waqf funds, waqf in Indonesia has enormous potential as an instrument of development and poverty alleviation. Waqf can contribute to a country's economic development, It can reduce government spending, equalize income distribution, reduce poverty, and boost economic growth. Additionally, waqf has the potential to improve people's health. Essentially, the waqf should be productive as stated in the hadith. but the latest based on research results in the management process at PT Karya Mandiri Community (KMM) Parung has 2 main problems, namely human resource problems and institutional problems. The problem of human resources is divided into three aspects, namely, Nazhir's managerial ability is relatively low, Nazhir is less creative, and people's understanding is still traditional. While institutional problems, namely coordination between the PT KMM and the community is relatively low. This study focuses on problem solving analysis of productive waqf management issues carried out by PT KMM.

Agricultural Gross Domestic Product and Farmer Exchange Rate on Income Distribution Inequality on the Island of Sumatra

Agricultural Gross Domestic Product and Farmer Exchange Rate on Income Distribution Inequality on the Island of Sumatra

EFFICIENCY OF SDGS IMPLEMENTATION IN VILLAGE SUSTAINABLE DEVELOPMENT TO REDUCE INCOME DISTRIBUTION INEQUALITY

Introduction: Village development in Indonesia aims to improve the welfare of the community, especially in terms of income equality. To achieve this goal, people-centered sustainable development is needed. Sustainable development is an effort to improve the quality of life while still trying not to exceed the ecosystem that supports life. Sustainable development in villages can be implemented through the Village SDGs. The Village SDGs include 17 goals that are interconnected with each other. Each goal has specific targets in addressing pressing social, economic, and environmental issues and creating a more just and sustainable future together. The purpose of this study is to determine whether people-centered sustainable development is effective in reducing income distribution inequality and to explain how it affects income distribution inequality. Methods: Using DEA analysis and panel data regression, the research object is 33 provinces in Indonesia. Results: The results show that education and income have a significant negative effect on income inequality. Furthermore, health has a significant positive effect on income distribution inequality. Conclusion and suggestion: Equal access to education, health, and equal income, will be effective in reducing the level of inequality in the community.

Can Piketty’s Interest Rate – Growth Rate Framework Explain Increasing Income Inequality in Pakistan?

Inequality in income distribution has important ramifications for economic growth, development, and social justice (see Atkinson (2000), Piketty (2013), Milanovic (2016), etc.). Piketty (2013) explains the phenomena of growing income inequality in high-income countries by comparing the interest rates (r) and growth rates (g) over time. The crux of the argument is that since the upper income groups generate a significantly greater proportion of their income from investments as compared to lower income groups (due to higher savings rate compared to lower income group), interest rates performing better than the national income growth rates in the high-income countries in the post-cold war era (r-g) explain growing income inequality in these countries. This paper examines the use of this methodology to explain income inequality in Pakistan. It compares the evolution of income of the top 20 percent of Pakistan’s population with the income of the bottom 20 percent, using Piketty’s lens of interest rate growth rate dynamics. Empirical results show that r-g methodology does not capture the income distribution dynamics of Pakistan. Upper income group appears to be negatively affected by increases in interest rates as compared to the lower income group. Prices, international trade, taxes, and financial development tend to be the leading reasons for reducing the impact of r and g framework to explain the income distribution. This paper makes novel contributions to the methodology and implications of Piketty’s framework for studying income inequality in small, open, less developed countries like Pakistan.

The chronic illness of poverty: the effects of microfinance on the severity of poverty and the cost of its eradication

PurposeThis paper investigates the impact of microfinance on poverty gap which is the shortfall in income or consumption expenditures below $1.90, $3.20 and $5.50 per day. The paper’s primary goal is to investigate how microloans have impacted the severity of poverty and influenced the cost of poverty eradication in Latin America, empirically evaluate these effects and offer appropriate policy recommendations.Design/methodology/approachThis paper used panel data for 13 Latin American countries from world bank spanning the period 2001–2019 and Fully Modified Ordinary Least Squares model for heterogeneous cointegrated panels. This study used Gross Loan Portfolio per active borrowers, gross domestic product per capita, Gini index, Inflation and Unemployment rate as independent variables and poverty gaps as dependent variables.FindingsPoverty gaps narrow as the loan per borrower increases, and the degree of effect differs with the poverty line, with the magnitude increasing as the poverty line falls, underscoring microloans as an effective tool in closing poverty gaps and lowering the cost of poverty eradication. Growth of GDP per capita is helpful reducing the poverty gap, especially for the less poor of the poor. Inflation and unemployment have no to little impact on the severe poverty gaps, but they start to matter when the poverty line is $5.5 per day. Finally, income distribution inequality widens the poverty gap regardless of the poverty line used.Originality/valueThis study suggests several implications. For example, Latin American nations need to embrace tangible policies that encourage economic growth while reducing inequalities in income distribution to effectively eradicate poverty. More supportive environment is necessary to increase the effectiveness of microfinance operations, particularly for the poorest populations. Microfinance institutions need to set less stringent conditions for loan accessibility and repayment schedules that are commensurate with different levels of poverty. Finally, strengthening microfinance as a strategic policy to gradually close poverty gaps and reduce the cost of poverty eradication.

Study on the Dynamic Relationship between Education Investment Policies and Income Distribution

The core objective of this study is to deeply explore the complex interactive relationship between education investment policies and income distribution. The aim is to comprehensively analyze the specific mechanism of education investment in shaping the income distribution pattern, and to examine in detail how income distribution inequality issues feedback and affect the design, implementation, and effectiveness of education investment policies. To achieve this goal, the study will systematically review relevant theoretical frameworks and empirical research results, aiming to reveal the deep logic of mutual influence and causality between the two. The research will focus on the impact path of education investment on income distribution, including but not limited to: improving individual human capital, enhancing employment competitiveness, and thereby affecting individual income; By improving the overall education level of society, promoting the upgrading of industrial structure, indirectly affecting the overall income distribution structure; And the impact of the differential distribution of education investment between urban and rural areas and regions on income inequality. We will conduct a detailed analysis of how changes in education investment in dimensions such as scale, structure, and efficiency can be transformed into reshaping forces on income distribution patterns. We will delve into the reverse shaping effect of income inequality on education investment policies and propose targeted policy recommendations.