Inequality Nexus Research Articles

Unmasking inequalities of the code: Disentangling the nexus of AI and inequality

This article provides an interdisciplinary exploration of the complex dynamics between artificial intelligence (AI) and inequality, drawing upon social sciences and technology studies. It scrutinises the power dynamics that shape the development, deployment, and utilisation of AI technologies, and how these dynamics influence access to and control over AI resources. To do so, we employ Margaret Archer's social realism framework to illuminate the ways in which AI systems can reinforce various forms of inequalities. This theoretical perspective underscores the dynamic interplay between social context, individual agency, and the processes of morphostasis and morphogenesis, offering a nuanced understanding of how inequalities are reproduced and potentially transformed within the AI context. We further discuss the challenges posed by the access and opportunity divide, privacy and surveillance concerns, and the digital divide in the context of AI. We propose co-ownership as a potential solution to economic inequalities induced by AI, suggesting that stakeholders contributing to AI development should have significant claims of ownership. We also advocate for the recognition of AI systems as legal entities, which could provide a mechanism for accountability and compensation in cases of privacy breaches. Finally, we conclude by emphasising the need for robust data governance frameworks, global governance, and a commitment to social justice in navigating the complex landscape of AI and inequality.

Income inequality-renewable energy demand nexus in emerging Asian economies: does asymmetry matter?

Several efforts have been made to explore the income inequality influence on environmental degradation, but the query regarding the nexus of income inequality and renewable energy consumption (REC) is still unanswered. This vacuum in existing literature has raised the need to inspect the relationship between income inequality and REC. Thus, this study purposes to investigate the asymmetric effect of income inequality on REC for emerging Asian economies over the period 1990-2019 by adopting the nonlinear autoregressive distributed lag (NARDL) approach. The panel-wise long-run results infer that positive shock in income inequality exerts a significant negative effect on REC, while negative shock in income inequality has an insignificant effect on REC. Likewise, economy-wise long-run findings reveal that a positive shock in income inequality brings a negative and statistically significant influence on REC in the case of China, India, and Iran, while a negative shock in income inequality brings a positive influence on REC only in case of Russia.

The role of the internet in moderating the effect of industrialization on income inequality in Africa

ABSTRACT While the internet-income inequality nexus and the industrialization-income inequality relationship have been separately investigated, this present study looks at the moderating role of internet penetration in the relationship between industrialization and income inequality. The focus of the study is on a panel of 44 African countries over the period 2000–2020. The empirical evidence is based on the fully modified ordinary least squares (FMOLS) estimation technique. The results show that while internet penetration has a negative and significant impact on income inequality, industrialization has a positive and significant impact on income inequality. Moreover, the interaction between industrialization and internet penetration exerts a positive and significant impact on income inequality. Policy implications are provided based on the findings of this study.

Shadow economy-income inequality nexus: a panel analysis of West African countries

ABSTRACT This paper examines the nexus between shadow economy and income inequality in the West African region. The study applies second-generation panel estimation techniques to analyze the effect and the direction of causation between the variables. The results reveal that the shadow economy reduces income inequality in the region in both short-run and long-run estimations. A similar result is documented when alternative estimation techniques are employed. In addition, the panel causality results show a bidirectional relationship between shadow economy and income inequality in the West African economy. The implications of the study are discussed.

Foreign Direct Investment and Income Inequality Nexus in Middle-Income Countries: Exploring the Role of Research and Development Expenditure

The study explored the role of Research and Development Expenditure in determining the linkages between foreign direct investment (FDI) and income inequality within middle-income countries. World development indicators were used as a source for panel secondary data from 1990-2023. Panel unit root analysis was employed for data stationarity. The Panel co-integration analysis using the Fully Modified Ordinary Least Square (FMOLS) technique was applied to obtain correlations among three core variables. The findings explain that co-integration exists between variables; all variables are stationary at the first difference level. The FMOLS model incorporates the impact of FDI on the income inequality index with control variables. The analysis suggests that FDI in middle-income countries may decrease income inequality. Increasing research and development expenditures can reduce income inequality by promoting innovation and reducing reliance on external funding.

Globalization — Inequality Nexus in the US and UK: A Multi-Dimensional Perspective

Equitable income distributions occupy a top spot on the list of the United Nations (UN) Sustainable Development Goals (SDG[Formula: see text]). Nonetheless, prior empirical inquiries noted several factors, including globalization as the determinant of income inequality, albeit divergent inferences. However, very little is known about the potential effects of other variants of globalization (economic, social, cultural and political) on income inequality. Hence, this study, through a multi-dimensional scale, provides a comprehensive empirical overview of the effects of globalization on income inequality in the United States and the United Kingdom between 1970 and 2018. The study adopts the Autoregressive Distributed Lag (ARDL) and Kernel Regularized Least Squares (KRLS) models for broad-based empirical narratives. The empirical estimates rectify that globalization and its variants influenced income distributions significantly more in the US than in the UK. Particularly, at the 25th and 50th quantiles, globalization produced significant inequality-reducing effects in the UK. This indicates varying outcomes across the distributions of income inequality. Hence, constant monitoring is critical to curtail the influence of globalization on income distributions. The study also revealed that the existing patterns of income distributions in both countries would not guarantee the attainment of SDG[Formula: see text]. However, if laborers are compensated adequately, the attainment of SDG[Formula: see text] is certain. Thus, relevant policy options that will ensure equitable prosperity in both countries are highlighted.

Income Inequality, Gender Disparities, and Ethnic Differences: Investigating Allostatic Load in American Adults.

To estimate the association between income inequality and allostatic load score (AL) in adults ages 20 years and older, with a particular focus on the differential impacts across racial and gender groups. By examining this association, the study seeks to inform targeted policy interventions to mitigate health disparities exacerbated by economic inequality. Utilizing data from the 1999-2016 National Health and Nutrition Examination Survey (NHANES), we assessed AL through eight biomarkers: systolic blood pressure (mm Hg), diastolic blood pressure (mm Hg), pulse rate (beats/min), body mass index (kg/m2), glycohemoglobin (%), direct HDL cholesterol (mg/dL), total cholesterol (mg/dL), and serum albumin (g/dL). Employing negative binomial regression (NBRG), we estimated incidence rate ratios (IRR) for a sample comprising 7367 men and 7814 women, adjusting for age, race/ethnicity, marital status, education, health insurance, comorbidity, and mental health professional utilization. Gini coefficients (GC) were calculated to assess income inequality among men and women. Findings revealed that men exhibited a higher poverty-to-income ratio (PIR) compared to women (3.12 vs. 2.86, p < 0.01). Yet, women experienced higher rates of elevated AL (AL > 4) (31.8% vs. 29.0%) and were more adversely affected by income inequality (GC: 0.280 vs. 0.333). NBRG results indicated that high PIR individuals had a lower IRR (0.96; CI:0.92-0.95) compared to their low PIR counterparts, a trend observed in women but not men. High PIR was notably protective among White non-Hispanic (WNH) men and women. Additionally, vigorous and moderate physical activity engagement was associated with lower AL (IRR: 0.89, CI: 0.85-0.93). The study emphasizes the importance of implementing policies that target AL in low-income populations across all racial groups, with a specific focus on Black non-Hispanic (BNH) and Hispanic communities. By prioritizing these groups, policies can more effectively target the nexus of income inequality, health disparities, and allostatic load, contributing to the reduction of health inequities.

Financial deepening on income inequality: A quantitative meta-analysis study

AbstractThere exists a vast empirical literature on Financial Sector Development (FSD) and the income inequality nexus; however, it lacks consensus. To study this, 24 studies with 87 regression estimates on financial institution depth and income inequality were collected. This paper used the most common method of economic meta-analysis, the Partial Correlation Coefficient (PCC), to answer the question: What is the magnitude and impact, if any, of financial institution depth on income inequality? In addition, a multivariate meta-regression model was used to find moderator variables that produced mixed results in the literature. The results show that the global average comovement of financial institution depth (domestic credit) on income inequality is very small but positive; suggesting that growth in domestic credit may widen income inequality. The positive correlation between domestic credit and income inequality highlights how financial institutions use household income and collateral as a signal when deciding on credit applications. Finally, the multivariate regression results suggest that the present heterogeneity within the literature stems from different methodologies and control variables included in the econometric models, and panel studies that mix countries with heterogeneous characteristics. These suggest that different components of FSD may impact income inequality differently.

Re‐evaluating Africa's growth, poverty and inequality nexus

AbstractThis study evaluates the role of growth in poverty reduction within the sub‐Saharan Africa (SSA) region in direct comparison to other global regions along time‐delineated thresholds. The study's results show (i) A significant gulf in the performance of SSA economies in comparison to their global cohorts; (ii) An improved role played by growth after the mid‐2000s for poverty reduction in SSA; (iii) A less deleterious impact of rising income inequality on poverty reduction within the SSA sub‐region relative to other global regions, and (iv) An improved performance of resource‐dependent SSA economies in translating growth to poverty reduction since the mid‐2000s. The convergence in growth‐induced poverty reduction between SSA and its global cohorts energizes prospects for attaining the Sustainable Development Goal of eradicating global extreme poverty by 2030; it however also calls for renewed strategies toward improving the efficacy of growth in future poverty reduction within the sub‐region.

The nexus of climate policy uncertainty, renewable energy and energy inequality under income disparities

This study has made a significant contribution to the literature on energy inequality by utilizing an economic-environmental framework to investigate this phenomenon across different income groups of countries worldwide. The study employed the Theil index to calculate intra-regional and inter-regional energy inequality among high-income, upper-middle-income, and lower-middle-income countries during the period 2001–2020. The study further examined the impact of key economic and environmental factors, including climate policy uncertainty (CPU), renewable energy consumption (RE), financial development (FD), income, and urbanization (UR), on energy inequality using a Two-Stage Least Square Method (2SLS) model. The findings indicated a negative impact of CPU, FD, and income on energy inequality, while UR was found to exacerbate energy inequality. RE was found to reduce intra-regional inequality in high-income and upper-middle-income countries, but it was found to worsen inter-regional inequality. These findings highlight the importance of addressing key economic and environmental factors to achieve equitable distribution of energy consumption and access to energy services.

Examining the income gap-gender inequality nexus in Africa using bi-wavelet and partial wavelet coherence analysis

The eradication of gender discrimination traditions and the reduction of income disparities are vital global objectives outlined in Sustainable Development Goals 4 and 10, particularly in African nations where gender and income gaps persist. In alignment with these goals, this study employs wavelet techniques to investigate the relationship between income inequality and gender equality in 31 selected African countries, utilizing available data spanning from 1998 to 2020. Analysis of the co-movement between gender equality and income gap reveals that gender equality plays a crucial role in narrowing the income disparity in African countries. Expanding the analysis to control for the impact of economic growth through the implementation of partial wavelet tools, does not change these results. Further dissemination of our findings reveals that improved gender equality has a more pronounced impact on reducing income inequality in anglophone nations compared to their francophone counterparts, given variations in legal frameworks and religious practices. This emphasizes the importance of gender-sensitive policies in effectively addressing income inequality in Africa and suggests that policymakers should tailor country-specific policies to account for differences in gender laws, cultures, and religious beliefs. Overall, our study presents novel evidence linking income and gender inequality in Africa at country level.

The Nexus of Gender Inequality and Poverty Rate in Indonesia

The Nexus of Gender Inequality and Poverty Rate in Indonesia

The Regulation and Inequality Nexus in Microfinance and Tourism Sectors

This paper examines the complex nexus between regulation and inequality in Zimbabwe’s microfinance and tourism sectors. Rural Small to Medium Enterprises in Tourism (SMETs) is typical in the informal sector. However, SMETs in rural areas face financial, regulatory, and exclusionary constraints. This paper follows a qualitative literature review methodology guided by an exploratory design. In addition, one secondary case study was included to highlight the lived realities of SMETs. Findings indicate a complex connection between regulation and inequality in the economy. Overregulation leads to corruption, marginalization, and exclusion of small business activities. SMETs are constrained because they need access to finance for business growth. Thus, the nexus between the two variables profoundly impacts policy. The government must entangle the relationship for policy directions in the microfinance and tourism sectors. The paper concludes that the nexus between regulation and inequality needs urgent attention. The paper’s originality is based on using a systematic literature review to assess how regulations affect microfinance’s ability to fund rural SMETs so that these areas could have economic opportunities that would improve the livelihoods of people residing in these areas, thereby addressing inequalities. Furthermore, it contributes to the debates on the complex relationship between regulation and inequality of two sectors (microfinance and tourism) in Zimbabwe. It also informs future lines of research on the subject. Due to noted limitations on the research design used, more comprehensive empirical studies are required to understand the complexity of the nexus.

Inflation-income inequality nexus in South Africa: the role of inflationary environment

ABSTRACT We estimate vector autoregressive models to examine the effect of the 3 to 6 per cent inflation target band in the inflation and income inequality nexus in South Africa. We use quarterly data spanning 1993Q1 to 2016Q3 to analyse how growth in income inequality responds to positive inflation shocks when inflation is within the 3 to 6 per cent target band versus when it exceeds 6 per cent. Evidence indicates that positive inflation shocks within the 3 to 6 per cent inflation target band lead to an insignificant decline in income inequality. However, greater income inequality results when inflation exceeds 6 per cent threshold. This suggests that the inflation-income inequality nexus in South Africa is nonlinear due to the 3 to 6 per cent inflation target range. Thus, inflation above 6 per cent is harmful as it increases income inequality. Policymakers should pursue policies that maintain the existing target band.

On the transmission channels driving climate change‐income inequality nexus in sub‐Saharan African countries

AbstractClimate change stands at the forefront of the worldwide agenda. Although its consequences are harmful to all humanity, some regions across the world remain more vulnerable than others. Sub‐Saharan Africa is one of the most suffering regions. In this paper, we investigate the climate change‐income inequality nexus in a panel of sub‐Saharan countries over the period 1990–2019. A greater emphasis is put on the potential transmission channels that drive this relationship. By using the recently developed method of moments quantile regression, we find that income inequality is exacerbated by the vulnerability to climate change. This relationship is still robust across all the quantiles with a greater effect at the highest quantile. The empirical findings reveal also the moderating role of agriculture, education, and gender through which the effect of climate change on income inequality is channeled. In light of the outcomes, the sub‐Saharan African region still needs appropriate combined mitigation and adaptation measures to efficiently combat the adverse effects of climate change.

Reproductive justice in the Colombian armed conflict.

This study explores the impacts of armed conflict on women's sexual and reproductive health in Colombia, building on a reproductive justice perspective to analyse original interviews with stakeholders in healthcare, women's rights, and peacebuilding. The analysis reveals that war affects women's sexual and reproductive health in three ways, through violent politicisation, collateral damage, and intersectional dimensions. First, multiple armed actors have used women's health as an instrument in politically motivated strategies to increase their power, assigning political meaning to sexuality and reproduction within the context of war. Second, women's health has also suffered from secondary damage of conflict resulting from a decay in healthcare service provision and an unmet need for healthcare services among those affected by sexual and reproductive violence. Third, marginalised women have been particularly affected by a discriminatory nexus of poverty, ethnicity, and geographic inequality. The paper concludes with a reflection on the opportunities for reproductive justice in Colombia.

Financial access and income inequality in Sub-Saharan Africa: Does ethnic fragmentation give new evidence?

There is a large body of work documenting the non-consensual effects of financial access on income inequality. Despite this extensive literature and the predominance of ethnic fragmentation in Sub Saharan Africa countries (SSA), little is known about its mediating effect on the above relation. This paper focuses on assessing the effect of ethnic fragmentation on financial access income inequality nexus. Based on Kripfganz and Schwarz's (2019) dynamic panel estimator of time-invariant variables in a sample of thirty-seven (37) SSA countries over the period of 1990–2019, it is observed that ethnic fragmentation hinders financial access to reduce inequality in SSA. The results remain stable following several sensitivity tests related to corruption, urbanization, financial literacy and socio-geographic factors. They are also robust to the use of alternative measures of financial access and to change estimation technique.

Fiscal Consolidation and Income Inequality Nexus: Evidence from Pakistan

Fiscal Consolidation and Income Inequality Nexus: Evidence from Pakistan

A Discourse Analytic Study of Vehicle Writings in the Iranian Context

Language, nowadays, as a means of communication, is scrupulously overhauled and dealt with in all disciplines, from social sciences to politics, especially through the lens of critical discourse analysis (CDA), for deciphering encrypted power and prestige encoded by pragmatic features. This study aimed to examine vehicle writings and inscriptions as a discourse form by adopting a discourse-pragmatic analytical approach to extract the key features of language practices of Iranian drivers through the medium of writing. The inscriptions on cars and automobiles were examined for the pragmatic features built on the Gricean model to excavate the existing conversational implicatures and for the critical interpretation through the insight of CDA to unearth the subtle nexus of power, prestige, privilege, control, authority, resistance, dominance, hegemony, inequality and discrimination. The findings uncloaked the evolving turns of Iranian vehicle writings in terms of form and meaning au courant with the quotidian modus operandi. Tradition is seen to be enlaced with a la mode scripts. The traces of power practice in the discourse of the powerless were found as a means of projection on the roads. The blatant instances of flouting maxims were evidenced in all four types of the principles drawn on the criteria.

Does ICT diffusion validate skill-biased technological change hypothesis? Evidence from the post-Soviet countries

This study scrutinizes the impact of ICT diffusion on decomposed measures of income inequality in post-Soviet countries. We apply the Cross-Sectional Autoregressive Distributed Lags (CS-ARDL) approach to examine the dynamics of our panel time series data from 1991 to 2019. Empirical evidence suggests that ICT diffusion is negatively associated with the income of the top segments (the top 1 % and 10 %) of the population in the long term, while its impact is insignificant in the short term. Moreover, the ICT diffusion de facto (policy-implementation spectrum) primarily promotes the income share of the bottom class, probably by providing new market opportunities. The spread of ICT, in terms of policy decisions, leads to a notable decrease in the income proportion held by the top 10 % of earners, exhibiting the most significant level of responsiveness. Furthermore, our findings infer that government expenditure can also play a crucial role in reducing income inequality by decreasing the income portion of the top segment. The implications of our findings have direct relevance for policymakers in formulating effective strategies regarding ICT diffusion-income inequality nexus.