Inequality In Income Distribution Research Articles

ДИФЕРЕНЦІАЦІЯ НЕРІВНОСТІ РОЗПОДІЛУ ДОХОДІВ НАСЕЛЕННЯ УКРАЇНИ У ВОЄННИЙ І ПОВОЄННИЙ ПЕРІОД

The article highlights the main problems of inequality in the distribution of income of the population, which is an inherent feature of a market economy, which in turn increases the dynamism of the labor market and is a stimulus for economic growth in the country. Characteristic signs of differentiation arise under the influence of various factors that have an economic, demographic or political essence. The main economic factors in modern realities can be considered: peculiarities of the functioning of the labor market, the level of development of the industry or a separate region of the country, as well as factors of demand, supply and distribution. Conducting an active and regulatory policy in the field of income distribution by the state makes it possible to avoid significant inequality. The problem of inequality of income distribution is one of the oldest and leads to social tension in society, therefore it requires detailed study and development of regulatory measures. Analysis and assessment of income inequality is carried out using various approaches and methodologies. They are aimed at the precise definition and development of effective measures that can be used to control the level of inequality and poverty. The growth rates of the population's income achieved in Ukraine give reason for only limited optimism, because compared to developed foreign countries, they are meager, and a significant part of the country's population is below the poverty line. Therefore, current realities dictate the need to deepen scientific research on the identification of negative socio-economic phenomena and the development of fundamentally new measures aimed at increasing incomes and reducing their differentiation.

ON THE ACCESSIBILITY OF FINANCIAL SERVICES AND INCOME INEQUALITY: AN INTERNATIONAL PERSPECTIVE

Income inequality has long been an important issue in development economics. Applying international data from 119 countries between 2004 and 2018, this study discusses the relationship between the accessibility of financial services and income inequality. Using the density of the bank branch network to represent the accessibility of financial services, we discover that income inequality is negatively related to the accessibility of financial services, especially in less developed countries and regions. In this nexus, the poverty ratio serves as an intermediary variable. The significance of the nexus is weaker in countries where fintech is more popularized, indicating the substitution effect between fintech and traditional banking services. Nevertheless, the substitution effect is limited, and bank branches will keep playing an important role in delivering financial services. For countries with inadequate banking services, bank branches should be increased to encourage residents to participate in the financial system, while it is no longer necessary to add a large number of branches in countries where fintech has been popularized. Faced with the trend of financial digitalization and the economic shock caused by the COVID-19 pandemic, banks should launch more online services and increase intelligent machines in the branches. By doing so, financial services are more resilient to social changes, so as to alleviate the inequality of income distribution in the long term.

Intra-Household Income Management and Couple’s Relative Sharing of Income and Environment Sustainability in Japan

This study aims to identify household members’ income sharing, when the amount of said income is governed by a particular household member. The results are expected to provide insightful evidence that identifies who is under the poverty line within families. This will illustrate the intra-household allocation inequality by observing the members’ household income dominance. Using the information on household income management obtained from the Japanese Household Panel Survey data (1993–2013) and the original Internet survey, this paper develops an alternative methodology to estimate the household income distribution of couples. A two-step estimation process was employed to estimate the wife’s manageable income equation. Then, the parameters were substituted into the husband’s manageable income equation to estimate the parameters for calculating the wife’s sharing rule. The results are as follows. First, a wife’s share of intra-household resources positively correlates to her manageable income resources. However, wives have weak power in expending the transferred income from their husbands. Second, the remarkable feature is that, on average, wives share 37% of the resources, meaning that the wives’ relative bargaining is weaker than the husbands’. Narrowing the gap in terms of hourly wage between husbands and wives is a crucial tool to reduce the intra-household allocation gap. Third, the wives’ relative intrahousehold income allocation improvement is associated with household environment sustainability activities. To improve the intra-household income allocation inequality, we provide an original approach to explore the intra-household head of household members’ relative income sharing. The results highlight the inequality of intra-household income distribution and confirm that reducing the income gap would be a crucial improvement factor.

A Study of Inequality of Opportunity in Income Distribution

Addressing inequality in income distribution is an important tool to achieve the goal of significantly reducing the gap in living standards by 2025. Among the factors contributing to the widening of income inequality, there are both equity factors related to differences in individual effort and inequality factors related to differences in environment and opportunities. In this context, the key to solving the problem of inequality in income distribution lies in eliminating inequality of opportunity as much as possible, which in turn is predicated on measuring the extent to which inequality of opportunity leads to income inequality. The latest research trend in recent years has been to gradually focus on inequality of opportunity, an important environmental factor affecting income disparity. The scientific measurement and decomposition of the components of inequality of opportunity and their impact outcomes can help achieve inclusive growth with equality of opportunity at its core. The current relevant studies mainly use non-parametric and parametric estimation methods to measure the level of inequality of opportunity, especially the parametric method is more widely used.

The impact of digital economy on environmental quality: Evidence from China

With the rapid development of new generation of information technology and the continuous deterioration of ecological environment, the environmental effect of digital economy has begun to receive attention. Based on panel data from 30 provinces in China during the period of 2014–2020, this study investigates the impact and mechanisms of digital economy on environmental quality using the fixed effect model and moderating effect model. The results show that the digital economy can significantly inhibit environmental pollution. The inhibitory effect of digital economy shows obvious regional heterogeneity, which is the strongest in the west, followed by the east, and the weakest in the center. The economic development level and income distribution inequality play positive and negative roles in regulating the negative linkage between digital economy and environmental pollution, respectively. The government should implement a differentiated strategy to promote the comprehensive development of digital economy and maximize its environmental effects, accelerate the integrated development of urban and rural economies through inclusive growth, and optimize the moderating effect of economic development level and income distribution inequality.

Reforms to the Israeli income tax

Income tax is a major component of state revenues, earmarked to finance the services provided by the government. Income taxes have a significant impact, among other things, on economic growth and income distribution. According to economic theory, personal income tax—perceived as progressive tax—is the main policy tool of the governments of developed countries and is aimed at reducing inequality in income distribution. The Israeli in- come tax has been through major reforms in the last decade and a half. These reforms include a reduction in income tax exemp- tions, steadily decreasing tax rates, simplification of tax calculation rules, reallocation of resources from the public and revenue sharing by reducing the income tax burden on the middle classes, a transfer from territorially based taxation of income earned or accrued in Israel to personally based taxation of income of Israeli residents, regardless of the place of earning the income. The result of changing the tax system and the transition to taxation on a personal basis means, in practice, an expansion of the tax base in Israel. This paper aims to describe the income tax prior to the reforms and the major reforms that had taken place up to 2017.

The Influence of Human Development Index on The Income Distribution Inequality In Yogyakarta

The purpose of this study is to analyze whether the Human Development Index is a key factor in encouraging the income distribution inequality in DIY Province. The method used in this research is to use Fixed Effect Model, using Chow test and Hausman test. The type of data used in the form of secondary data which is research data, which is a combination of time series data from 2010-2020 and cross section data from 5 regencies in DIY Province. The data in this study are quantitative in nature, namely data obtained from the Central Bureau of Statistics in the form of numbers, including: Gini Index, HDI, GRDP, and LGI. The results showed that based on the results of the R-Square of 0.5424 which means the income distribution inequality in 5 regencies/cities in DIY Province has a change of 54.24% which is influenced by the HDI, GRDP, and LGI variables. While the value of 45.76% is influenced by variables outside the study. Based on the partial test, it was found that the HDI and LGI have a positive and significant effect on the income distribution inequality, while GRDP has no significant effect on income distribution inequality in 5 regencies/cities in DIY Province.

The impact of economic discontent on income distribution: the case of selected fragile economies

Purpose- The redistribution of the production value is one of important macroeconomic indicators in determining the economic growth performance of a country. However, since the countries present different growth performance and have various conjunctural changes, they may present different income redistribution of production values and therefore they migh show variation in socialinjustice. Commonly countries with fragile economies face many problems incluing high inflation and unemployment rates, budget deficit and current account deficit. This study aims to examine the impact of the discontent index on the fairness of income distribution in fragile economies. Methodology- A panel co-integration test was conducted to analyze the impact of economic discontent, total factor productivity and human capital on income distribution in four countries (Türkiye Brazil, Argentina and Indonesiaduring the the 1985-2019s. Findings- The panel co-integration test did reveal any significant factors affecting the discontent index on the fairness of income distribution in fragile economies considered in this study. Conclusion- According to the results of the research, inequality in income distribution should be analyzed comprehensively both at macro and micro scales so that this study is planned to be carried out bteween a large number and group of country. Keywords: Income inequality, discontent index, total factor productivity, panel cointegration, human capital index JEL Codes: E20, C50, D63

Context matters: The drivers of environmental concern in European regions

Environmental concern is crucial as bottom-up support for policies that aim to tackle the multiple ecological crises. This paper investigates which characteristics of 206 European regions are robust drivers of generalized environmental concern. To this end, 25 Eurobarometer survey waves between 2009 and 2019 were combined with measures of the regional economy, population, geography, environmental quality, and meteorological events. Bayesian model averaging is used to systematically account for model uncertainty in the estimation of partial correlations. The results indicate that environmental concern increases with income level, a more equal distribution of income and wealth, and a less greenhouse gas-intensive industrial sector. Furthermore, regions with younger and better educated populations exhibit higher levels of environmental concern. In terms of environmental characteristics, both geographical vulnerability to natural hazards and meteorological events affect environmental concern. The results highlight the importance of the socio-economic and environmental context of opinion formation and have implications for designing and communicating environmental policies.

Frontier tourism development and inequality in the Nepal Himalaya

This article proposes ‘frontier tourism development’ as an apt analytical lens through which to understand contemporary tourism development in rural peripheries. Based on a rich case study of more than 90% of households across seven villages in the Manaslu Conservation Area, the article analyses local-level inequalities in participation and benefits from tourism development in one of the world’s most remote peripheries—the high Himalayas of Nepal. The analysis documents that distance to the trekking trail running through the area significantly determines engagement in the tourism sector and that, among participating households, the wealthier obtain significantly more tourism income. These local-level findings show how development initiatives intended to engender a more equal distribution of tourism income at a regional scale may end up increasing income inequalities at a local scale. Interpreting these findings though the notion of frontier tourism development as a particular kind of commodity frontier, the article highlights challenges to market-oriented inclusive tourism development in the face of composite rural economies and rapidly changing livelihood conditions. It documents bubble-like barriers to trickle-down and backward linkages at the frontiers of tourism development; illustrates the need for broader analytical alternatives to dominant value chain approaches; and encourages a more robust integration between studies of rural tourism and the wider political economy perspectives of critical agrarian studies.

Empowerment of Indonesian MSME Business Performance: An Empirical Analysis of Knowledge Sharing and Innovation


 
 
 
 Abstract
 The wheel of a country's economy is driven by the growth of Micro, Small, and Medium Enterprises (MSMEs). Structural socio-economic changes from MSME business activities can improve people's living standards, such as absorbing jobs, fostering a sustainable business climate, and equal distribution of people's income. Along with the increasing number of MSMEs, business actors are required to strengthen business performance through innovation orientation in the products they produce. Knowledge sharing is one of the competitive advantages built by the company so that MSMEs are guided in carrying out business activities. Acquiring knowledge and skills through collaboration is an effective and efficient effort to innovate in the business environment. This study examines knowledge sharing and product innovation in MSME performance management. The study used a quantitative method of 225 respondents based on purposive sampling criteria. The implementation of Structural Equation Modelling (SEM) with the AMOS 24 statistical tool was applied to test the feasibility of the data and research hypotheses.
 Keywords: Knowledge Sharing; Product Innovation; Business Performance
 
 
 
 

Excessive Income Inequality In Russia As A Threat To Economic Growth And Societal Security

The author makes the case that the growth of the Russian economy in the 2000s was socially detrimental as it was accompanied by an increased inequality of Russians both in terms of current incomes and accumulated wealth. A qualitative analysis of the socio-economic inequality that has developed in modern Russia is carried out in unity with its quantitative characteristics; the factors contributing to inequality in various countries are explained, both objective and influenced by policy. Inequality in income distribution, on one hand, is seen as a possible accelerator of economic growth, and on the other hand, the way it slows the GDP growth down is also revealed. Describing the normal income stratification as accelerating and the excessive stratification as, on the contrary, slowing down the economic growth, the author, by analogy with the Laffer curve, proposes an original income stratification curve, on the basis of which a set of interconnected proposals is substantiated to return the excessive differentiation of Russians to the limits of normality in order to guarantee sustainable economic development and reliable societal security in Russia.

Transmission Channels of Effects of Inequality in Income Distribution on Economic Growth in the Group of Countries with Lower Levels of Inequality and Economic Development than Average - Suggestions for Vietnam

Using a fixed effects model for processed panel data to increase data homogeneity, the article found that in the group of countries with lower levels of inequality and economic development than average, increased income inequality will stimulate economic growth. This positive effect is the combined result of many different effect transmission channels, of which 6 channels were found including fiscal policy channel, imperfect capital market channel, consumer behavior channel, labor motivation channel, access to education channel and domestic demand for goods and services channel. The article has not found evidence about socio-political instability channel, fertility decision channel, investment savings channel and access to health service channel. From the estimation results, the study has proposed a number of solutions for Vietnam towards harmoniously resolving the relationship between income inequality and economic growth.

Income inequality: Global trends in labour share of GDP

Recent trends in the labour share of income dynamics in high- and middle-income countries and the relationship between the amount of GDP paid out in wages, salaries and benefits and inequality in income distribution are examined in this article. The growing concern about the rising inequality due to COVID-19 worldwide explains the necessity of research in this field. To detect the trend, the autoregressive model is examined, which is estimated by the least squares dummy variable method for panel data A negative trend was revealed for countries with a high share of labor of output in the period of the 1990–2010s, which was replaced by a weak positive trend. At the same time, for several countries with a low share of labor in GDP, negative trends intensified after the global economic crisis. For the group of countries where compensation for labor costs averages from 42 to 56% of GDP, the hypothesis of a trend was not confirmed. Our results confirm the relevance of negative trends in the share of labor compensation of income caused by such common factors as technological change or globalization in the period 1990–2010 and point to divergent trends in the decade following the global crisis.

Assessing Inequality of Income Distribution and Education in the Regions of Kazakhstan

In the current social conditions, the problems of inequality associated with the uneven distribution of income in society is an important research problem. Thus, it is necessary to investigate the level of regional differences in income distribution in developing countries like Kazakhstan. The study aims to assess the influence of income, social expenditures, and inequality in the distribution of education and education costs between different regions of Kazakhstan. Unlike previous scientific papers in this area, this paper uses panel data on the distribution of human capital and income in 17 regions of Kazakhstan. The methodological framework of the research is represented by methods of statistical assessment of economic inequality, such as the indicator of differentiation, reflecting the degree of social and economic inequality. Based on the proposed methodology, we analysed the disparity in the level of education and obtained data on the standard deviations of the distribution of education for the population of the regions of Kazakhstan. According to these data, inequality changes over time and affects the distribution of education and education costs between different areas. Income inequality is slightly higher in Karaganda and East-Kazakhstan regions; other areas have a more equitable income distribution by about 0.05 Gini coefficients. The regression specification shows that large megacities like Shymkent, Almaty, and Astana have a more significant influence, while Mangystau and North-Kazakhstan regions have minor power. The obtained results emphasise the importance ensuring access to education for reducing regional disparities and achieving stability in income distribution.

Analysis of The Determining Factors of Open Unemployment Rate In East Java Province 2018-2020

Indonesia is one of the developing countries that is still experiencing a process of economic development which has the goal of achieving social welfare, in achieving prosperity one of which is needed is the existence of supportive employment opportunities and the existence of equal distribution of income in society, in Indonesia between existing employment opportunities and the workforce occurs gap, namely the increase in the number of employment opportunities is not proportional to the increase in the labor force which increases too quickly, this can have an impact on unemploymentThis study aims to analyze and find out how much influence population, economic growth, labor force and education level have on unemployment in East Java in 2018-2020. This study uses secondary data, namely time series data for 2018-2020. The analysis tool uses panel data regression. Based on the results of the analysis and discussion, it can be concluded that population size and economic growth have a negative effect on unemployment while the human development index, labor force, and education level have no effect on unemployment

Analysis of Poverty Determination in Madura 2010 - 2019

One of the largest’s poverty percentage in East Java Province is on Madura insland.The average percentage of poverty in district on Madura Island is higher than thepercentage of poverty in East Java Province. Based on this, it is known that the poverty rate in Madura is above East Java Province, reaching more than 20 percent. 2022This study aims to determine the effect of the independent variables of economicgrowth, Unemployment Rate, Inequality of Income Distribution on Poverty Levelson Madura Island. In this case, the data used is panel data which is a combinationof the time series, namely 2010 – 2019 and the latitude series of 4 districts inMadura. The data analysis method used in this research is panel data regression.The results of this study are the variable economic growth (X1) has a negative andsignificant effect on poverty in Madura Island. The Variable Unemployment Rate(X2) has a positive and insignificant effect on poverty in Madura Island. Incomedistribution inequality variable (X3) has a negative and significant effect on povertyin Madura Island

Exploring the heterogeneous impact of technological innovation on income inequality: Formulating the SDG policies for the BRICS-T economies

The present research evaluates the effect of technological innovation distribution on the distribution of income using data from between 1992Q1 and 2019Q4 for the BRICS-T (Brazil, Russia, India, China, South Africa, and Turkey) nations. The BRICS-T nations present a good case for this research since this problem could be more widespread in developing countries with high prospects for economic growth. The quantile causality and quantile-on-quantile regression techniques have been used to evaluate this association. The research findings provide a range of outcomes from different countries, which can be grouped into three categories; (i) Technological innovation impacts income inequality positively. (ii) Technological innovation distribution impacts income inequality distribution negatively. (iii) The effects of technology innovation on income distribution are not evenly distributed. Significant policy ramifications are deduced that might inspire sustainable development plans in the BRICS-T nations. This research is one of the first studies to demonstrate a direct connection between income inequality and technological innovation across various quantiles within a country. The study also effectively shows how these techniques are utilized to deduce the policy ramifications of the Sustainable Development Goals (SDGs).

Analysis of BAZNAS's Efficiency in Banten

Poverty and inequality in income distribution are classic economic issues faced by all regions, including Banten. In addition, Islamic institutions offer an instrument for distributing wealth through Islamic philanthropy, namely BAZNAS. In the operational activities of BAZNAS, assessment is needed for the evaluation and accountability of BAZNAS internally and externally in achieving the goal of overcoming problems and equitable income distribution. The research method used is a quantitative approach through the DEA (Data Envelopment Analysis), a non-parametric calculation method to measure an institution's efficiency level. The input variables used are total assets and operational costs, and the output variables used are the amounts of collection and distribution of ZIS funds. According to the findings of this study, the BAZNAS of Banten Province was efficient in 2019 and 2020. In 2020, the BAZNAS of South Tangerang City and the BAZNAS of Serang Regency were efficient. In 2018, the Tangerang City BAZNAS did not yet achieve efficiency. Specifically for BAZNAS of Cilegon for the period of 2016-2016. 2020 failed to attain efficiency and continues to deteriorate annually. Three factors caused the inefficiency at BAZNAS in Banten Province between 2016 and 2020: first, the excessive, ineffective, and productive use of assets may have contributed to the institution's poor performance. Second, expenditures on operational costs that deviate from the aim create an increase in expenses. The third issue is that the collection and distribution of ZIS funds have not been optimized.

An income equalisation policy and social welfare: beyond inequality.

The inequality of income distribution is one of the most serious problems to our society. Traditional economics proposes the tax increase on wealthy classes and transfers its revenue to low income group. This is the most appropriate one. But, the total of this and donation will unfortunately be insufficient. For procuring funds to ease inequality, I propose to erase the government bonds which are already purchased and owned by the central bank. The government, then, issues new government bonds (the total sum of which should be less than erased one) to expend for equalization. The amount of new government bonds is determined from the maximisation of social welfare function concerning to income distribution. By this policy, first, the socially optimal equalization will be attained; second, through the productivity increase caused by the expenditure for low income group, the national economy will grow; third, because of the erasure process, the government bonds outstanding will not increase. In these days of pandemic, much more government expenditures are needed and thereby government deficits are piled up. I think the valid policy is not the heavy tax increase, but the execution of erasure of government bonds outstanding and to equalize income distribution.