Inequality In Income Distribution Research Articles

Income inequality and intragenerational income mobility in Sweden from 1983 to 2010: Following two birth cohorts

Sweden has been known for having one of the most equal income distributions in the world. However, in recent decades, Sweden has experienced increasing income inequality. An alternative way of measuring the development of inequality is to study and compare the income development within and between two birth cohorts according to gender and different positions of income distribution. The focus in this paper is to study how individual disposable personal income has changed by aging and at various positions of the income distribution, as well as the gender disposable income gap and intragenerational income mobility. Three positions of the income distribution were chosen: percentile 10; median; and percentile 99. Two cohorts, including all individuals born in 1948 and 1958, were tracked from 35 years of age to 53 years of age – with two 18-year overlapping periods, 1983–2000, and 1993–2010. The results show a complex and multifaceted image of the development of income inequality and mobility, within and between the two birth cohorts. Especially male low-income earners, born 1958, have been left behind. Income mobility differ according to gender where women have increased mobility in the bottom quintile and decreased in the top quintile, men experienced the opposite. When modelling mobility education have decreased to contribute to an upward mobility, especial for cohort born 1958. Taking all the results together, the development of increasing income inequality in Sweden is apparent.

Tingkat Kriminalitas di Kota Banjarmasin dengan Pendekatan Ekonomi

This study examines the influence of (1) the effect of income distribution inequality (Gini ratio), poverty, and job opportunity that simultaneously in crime rates (2) which one of the factors that more dominant effect in crime rates. The object of this study is Banjarmasin City. This research used secondary data in the form of time series for 12 years, started from 2007 to 2018. Data processed used multiple linear regression with software Eviews 9. This study proved that are partially variables income distribution inequality (Gini ratio) was positive and significant. At the same time, variable poverty and variable job opportunity are both positive and not significant in crime rates in Banjarmasin City. Whereas simultaneously, three independent variables were not significant in crime rates in Banjarmasin City. Then, variable income distribution inequality (Gini ratio)is the dominant effect in crime rates in Banjarmasin City.

Klassen Typology and Williamson Index to Measure Macroeconomics in South Sulawesi Province

This study was conducted to analyze the classification of economic growth of each district/city in South Sulawesi Province use Klassen typology, Williamson index, and logistic regression. Analyze income inequality between districts/cities in South Sulawesi Province. This study uses secondary data with a sample of fifteen years from 2005 to 2019. The results of the study show that: (1) several districts/cities have potential as developed and fast-growing areas, developed but depressed areas, fast-developing areas, and relatively underdeveloped areas; (2) income inequality in South Sulawesi Province is in a low condition; (3) economic growth and income disparity have a negative and significant effect on welfare in South Sulawesi Province. This means that economic growth and growth disparities affect the community's welfare in South Sulawesi Province. Economic development results do not only indicate the direction of achieving specific economic growth rates. Based on the results, it can be concluded that the economic growth has fluctuated. The Williamson Index shows that there are disparities. Partially, economic growth and income disparity significantly affect people's welfare in South Sulawesi Province. So that, the local government in its program is also expected to be able to more intensively carry out efforts to equalize income distribution social welfare.

When the Rising Tide Lifts All Boats Differently: Income Distribution Matters

In 2018, Alonzi, Drougas, and Condon (“ADC”) developed a simple macroeconomic model to analyze the effect of a less equal income distribution. This paper builds upon that paper by constructing a model incorporating a rising absolute income in both the high and low groups while at the same time allowing a higher proportion of income to go to the high-income group, but a lower proportion go to the low-income group. Notably, we find that the qualitative results of the “Reverse Robin Hood” case remain in the “Rising Tide” case but there are quantitative differences.

PRO-POOR GROWTH: CONCEPT AND MEASUREMENT IN CASE OF PAKISTAN

Purpose of the study: The study aims to investigate the welfare of the citizens of Pakistan and to compare the traditional economic growth rate i.e. IWI with welfare indices i.e. ACEWI, ACPWI-I, ACPWI-II.
 Methodology: For the welfare index, Ahluwalia and Chenery Welfare Index have been used to evaluate the welfare of the people in Pakistan. The study used time series data from 1990 to 2017.
 Main Findings: Outcomes stated that the traditional measure of household income growth is far greater than the real growth rate which was measured through ACWI’s. Pakistan’s economy lacks equal distribution of income among different sections of the society because of government fiscal policy.
 Novelty/Originality of this study: This investigation will provide the policymaker with proper guidance for developing a policy for the fair distribution of the resources to build the standard of living of every citizen in Pakistan.

Fiscal Implications for Rural-Urban Income Inequality: The Case of Pakistan

Purpose: This study investigates the fiscal implications through taxes and total expenditures for rural-urban income inequality in Pakistan. Fiscal policy plays a significant role in stabilizing the macroeconomics variables and equal distribution of income among society. Pakistan is a good case study because there is a dual rural-urban sector that emerges with industrial development and other traditional rural agriculture-based regions. Design/Methodology/Approach: We use time series data (1985-2018) with autoregressive distributed lag models (ARDL) for long-run and error correction models (ECM) for short span dynamic co-integration. The above models try to capture the practical effect of fiscal progress on income distribution among modern urban and traditional rural regions. Findings: The findings show that tax side fiscal measures are more harmful to rural-urban income distribution. On the expenditure side, fiscal policy has a significant impact on all disburse income distribution. The most surprising results belong to trade liberalization, it has significantly improved income distribution in urban areas but not in the rurals. Financial development has also verified the accumulation of wealth among rural-urban areas because of the emergence of private profiteering groups in Pakistan. Practical Implications: For policy purposes the government of Pakistan should spend on improving the quality of life of the households by investing in social goods like health, education, and foundation inequality situation may be better off. The nature of public spending and who gains the benefits from this spending decide the nature of inequality. On the supply side, the government should reduce the tax burden for rural households. Originality/Value: The results of the study may improve the rural income distribution if they used properly.

WHY DOES MUZAKKI PAY ZAKAT THROUGH BAITUL MAAL INSTITUTION?

Abstract Islamic economic philanthropy through zakat is a means of distributing income from the rich to the poor. The decision of muzakki to pay zakah via zakat institution contributes to equal income distribution within an economy. Thus, it crucial to determine the factors causing muzakki to pay zakah via zakat institution. On this basis, this study intends to examine the effect of transparency, motivation, culture, and reputation on the decision of Muzakki to pay the zakat at the baitu maal institution. The method of analysis used in this research is a binary logit regression model. The sampling technique was purposive sampling with as many as 66 respondents. The results showed that transparency, motivation, culture, and reputation had a positive and significant effect on the decision of Muzakki to pay zakat at the baitu maal institution. To increase the interest of muzakki to pay zakat through the baitu maal institution, muzakki needs to be motivated to obey in paying zakat. The baitu maal institution is required to improve its reputation through optimizing service quality.

Analysis of Factors Affecting Income Distribution Inequality in Indonesia 2009-2013 Period

Purpose: to analyze the effect of population, minimum wages and unemployment on inequality of income distribution in Indonesia. This study uses secondary data in the form of panel data consisting of time crosses for the period 2009-2013 and cross places in 33 provinces in Indonesia
 Design/methodology/approach: The analysis carried out is a quantitative analysis using multiple linear regression to answer the problem formulation and determine the effect of predetermined variables.
 Findings: All independent variables are said to have a joint (simultaneous) influence on the dependent variable because it is seen from the level of significance that the number is 0.002 less than 0.05, which means that there is a significant effect simultaneously between the population, minimum wages and unemployment on inequality of income distribution. in Indonesia the period 2009-2013. There is a partially significant effect between the minimum wage and the inequality of income distribution. The minimum wage variable has a dominant influence on inequality in income distribution in Indonesia for the 2009-2013 period.
 Practical implications: To Intensify business in the economic sector in order to touch the lower class of society
 Originality/value: This paper is original
 Paper type: Research paper

Inequality of rural income distribution in Iran: an exploratory analysis of spatial data

Despite regional differences, spatial distribution has not been addressed in studies on rural income in Iran. The main goal of this study is to analyze the spatial pattern of inequality in rural areas of the country. In this research, Moran’s I index, Theil index and Gini coefficient have been used for the period 2005-2015. The results show that both inter-regional and intra-regional components affect the unequal distribution of rural income, but the importance of the intra-regional component is slightly higher. The study of the data obtained from the Moran’s Ι index shows that there is evidence of the spatial clustering phenomenon in rural economy of the country.

THE PERFORMANCE OF MICROFINANCE PROVIDERS ON POVERTY ALLEVIATION AMONG YAM FARM HOUSEHOLDS IN SELECTED LOCAL GOVERNMENT AREAS OF NIGER STATE, NIGERIA

The study examined the performance of microfinance providers on poverty alleviation among yam farm household in some selected Local Government Areas of Niger State, Nigeria. Multi-stage sampling technique was used to draw up respondents for the survey. Data were collected from 120 respondents using structured questionnaire and were analyzed using descriptive statistics, poverty gap index, Foster-Greer-Thorbeck index, head count ratio, severity index, farm budget technique, and Gini coefficient. The results revealed that most (89.17%) yam farm household were males and married (87.50%). The average age of the respondents was 37.83 years; 75% were into poultry farming; 44.17% and 30.83% obtained credit from commercial and microfinance banks, respectively. Also, average income of the respondents before and after the loan was N38, 401.04 and N83, 329.21, respectively. The results also revealed even though credit had positive impact on the livelihood of the respondents in the area, the result of the Gini coefficient (0.6631) showed that there was inequality in income distribution among the respondents in the area. The study therefore, recommended that additional microcredit providers be established in the study area to increase its impact among the respondents especially in poverty alleviation. Also, integrated community development effort should be encouraged to provide rural infrastructures in the study area.

Диференціації доходів населення: об’єктивна та суб’єктивна оцінка

The article is devoted to an empirical analysis of the relationship between objective and subjective assessment of inequality in income distribution. Identifying the relationship between these indicators is a topical issue and requires research to verify the relationship between statistical, graphical and correlation-regression analysis. The objective level of income inequality is represented by the value of the Gini index, and the subjective assessment is the result of a survey of respondents in the World Values Survey project, namely the weighted average perception of inequality on a 10-point scale. The analysis of a sample of 36 countries as a whole and separately in Ukraine was carried out. The results on the nature of the relationship between the selected indicators of inequality in income distribution were obtained.

Economic growth and inequality of income distribution between regions: Evidence from Bali Province, Indonesia

Bali Province shows a prominent performance in the development of the tourism sector. However, essential problems were found related to inequality in the distribution of income between regions. The aim of this study was to analyze the effect of locally-generated revenue, education spending, health spending, investment and infrastructure on economic growth and inequality in income distribution between districts/cities in the province Bali. This study uses a quantitative approach. The study explores panel data that combines time series and cross section data from the Regency / City of Bali Province during 2010 - 2017. The data analysis method uses path analysis. The results showed that local revenue, education spending, government spending on health, investment, and infrastructure had a positive effect on economic growth and reduced income inequality between regions. Economic growth is also able to mediate the influence of variables on inequality. The findings of this study emphasize the importance of planning coordination from each district and city to mutually commit to mobilizing all local resources such as human resources, finance, investment and infrastructure; to generate economic growth and reduce inequality between regions.JEL Classification E27; H75; R58

SOSIALISASI PEMASARAN PRODUK UKM KRIPIK KIKIM "JALAL" DI PEKON PODOMORO MENGGUNAKAN MEDIA SOSIAL INSTAGRAM

Competition in the distribution industry is getting tighter. One of the things that makes a distribution company survive is the provision of products that are on time to consumers at the right time, and at an economical cost. Product availability and economical selling prices can only occur if there is good coordination between the company and the parties in its supply chain. Micro and medium enterprises are part of the national business. UMKM can also be considered as the locomotive of national and regional (regional) economic growth, because they have the potential to empower all available resources and encourage the growth of entrepreneurial development. The role of UMKM in Indonesia, namely increasing employment opportunities, equal distribution of income, rural economic development, increasing non-oil and gas exports and contributing to increasing GDP. On this basis, STMIK Pringsewu students collaborate with Pekon Podomoro to provide assistance services for people who have home industry businesses to have a digital-based sales platform, namely a social media. This activity aims to provide an understanding for UMKM players how to market food products, crafts, clothing, services and others using social media. From this activity, the people of Pekon Podomoro who have a home industry can market their products quickly, precisely and safely so that business actors can provide convenience to customers.

Hidden European Union Trade Regulations: The Case of the Banana Import Regime and the Lack of Perception

Given the current Trump´s stated trade policy it is interesting how the EU has established silently in the past trade barriers. The banana regime (BR) has been one of the most politically sensitive, technically complicated and economically complex legal disputes. The BR has started after WWII as a protection measure for former European colonies. With the single European market, a European-wide import regime was established. BR was introduced, even though the EC had to know that it conflicted with international trade rules. The paper shows the various effects caused by the banana import regime. The banana price increase reduced the banana consumption, which led to a dead-weight loss in the EU and welfare losses of the exporting countries. On the other side, the demand for substitutes (e.g., apple, pears) increased. The efficiency of the supply chain was impaired leading to additional environmental pollution. The regulation created incentives for customs fraud. The organized crime (Mafia) received an enormous cash inflow. The BR is a deliberate violation of international law; it reduces consumer welfare, it harms environment and sustainability and leads to an inequality of income distribution. Against this background, the paper examines why neither consumers nor European politicians perceived the BR as a problem, why was there no public pressure, why there was no ecological resistance, and why the WTO-negotiations could be delayed so long.

Correlation of Income Inequality and Entrepreneurial Activity

The fact of growth of inequality in distribution of income both inside the national economies and between the countries is confirmed by many empirical studies. In particular, these are annual reports of the World Bank, UNIDO and European Commission. The growth of inequality in distribution of income causes social tension inside the countries and promotes conflicts between the countries. Entrepreneurship serves as a form of softening social tension. Entrepreneurial activity ensures a significant percentage of employment and self-employment in many countries providing the income of the population at the level above the minimum consumption rate. In some cases, entrepreneurship could serve as a social lift for transition to a higher level of income distribution. The goal of this article is a statistical check of dependence between the level of income inequality and entrepreneurial activity in countries with different levels of GDP. A system approach and correlation analysis are used as the study methods. The statistical check of a correlation between the Gini index and level of entrepreneurial activity showed significant differences in the correlation degree of the said indicators for different countries and time periods. An assumption was made that there is a statistical dependence between the indicators, however, inclusion of additional parameters, among which we can find inequality of the property distribution and the level of institutional support of entrepreneurship, is required.

Why reducing relative deprivation but not reducing income inequality might bring down COVID-19 infections

We examine an assumed link between reducing inequality in income distribution, namely reducing the Gini coefficient on one hand, and improving public health in general and lowering the incidence and severity of COVID-19 in particular on the other hand. The Gini coefficient can be shown to consist of two components, one of which is (a measure of) relative deprivation, which was found to cause social stress that harms public health. Because a component is not the whole, the lowering of inequality in the income distribution by means of reducing the Gini coefficient does not necessarily result in lowering relative deprivation. Specifically, we show that a policy of reducing income inequality aimed at improving public health might not be effective - even when, in the process, no-one's income is reduced, or all incomes increase.

Financial Development and Income Inequality Relationship: Analyzing Financial Kuznets Curve with ARDL Boundary Test in Turkey

In this study, the relationship between the financial development and the income inequality in Turkey is investigated by testing the validity of Financial Kuznets Curve Hypothesis. To examine this relationship for the period of 1987 2017, the variables of the public final consumption expenditures, the modern sector share, the inflation and the human capitalare also added to the model setted as control variables, and the long term relationships among the variables are analyzed by using the ARDL (The Autoregressive Distributed Lag) Boundary Test approach. Empirical evidence refers to the validity of the Financial Kuznets Curve Hypothesis in Turkey, in other words, there is an inverse U shaped relationship between the financial development and the income inequality. Accordingly, while the financial development raises the inequality in income distribution to a certain threshold level, it reduces the inequality after this threshold level in Turkey. Moreover, in the long run increases in the modern sector share, the public final consumption expenditures and in the trade openness help to reducing income inequality but increases in the inflation and in the human capital make worse income inequality. Keywords: Financial Development, Income Inequality, Financial Kuznets Curve, ARDL Boundary Test. DOI: 10.7176/JSTR/7-01-07

Modern global challenges and trends: diagnostics of impact on the region’s endogenous development

Different approaches to the interpretation of the definition of “globalization” and assessments of its impact on the endogenous development of the state and regions are considered. The paper argues that global trends have a decisive influence on the economy and the potential of endogenous development of the regions of Ukraine in view of: strengthened polycentricity of spatial development; expansion of protectionist tendencies and global asymmetry; reduced level of functionality of international institutions; the beginning of regionalization of virtual networks. Based on the analysis of domestic and foreign scientific literature and analytical materials, the main modern globalization challenges and trends are revealed - strengthening the interdependence of the world’s economies; strengthening economic protectionism; growth of external debts of the world; growing inequality in income distribution, widening the gap between rich and poor countries; urbanization, metropolization; political, ideological, and military challenges, etc. The main areas of influence of these megatrends in the context of endogenous development of the region are named - the resistance of the region’s economy to cyclical global fluctuations and risks; the region’s involvement in global value chains; intellectualization of labor, human potential, knowledge economy, and creative economy; cohesion of spatial socio-economic development; cybersecurity of the region’s economy; virtualization of socio-political relations; digitalization; migration and tourist flows, etc. The paper proves that the impact of current global challenges and trends on the endogenous development of the region is multidirectional. Thus, some trends may pose risks and threats to the endogenous development of the region (i.e. cause deterioration of its socio-economic status), and others - may still have positive or neutral results despite the creation of certain threats to the security of the region.

СУЧАСНИЙ СТАН СОЦІАЛЬНОГО РОЗВИТКУ УКРАЇНИ

Social development should be a priority of the modern social policy of every state. Despite positive developments in the economic sphere of many national economies, social problems affecting the standard of living and quality of life, as well as the equal distribution of income among the population, are increasingly arising. The main purpose of the study was to analyze the theoretical approaches to the understanding of social development, to investigate the state of social development in Ukraine and to propose priority directions of state social policy that will contribute to social progress. A key indicator that helps to adequately assess the level of a country's social development is the Social Development Index. The index helps governments decide on the main directions of social policy, public investment priorities, and other measures that will contribute to social progress. Over the past ten years, Ukraine has significantly improved its performance in terms of economic inclusion (discrimination against minorities, opportunities to influence political decisions based on gender, social group, and socioeconomic status) and in the category of access to information and communications (access to online services, Internet, media censorship, and availability of cell phones among the population). Ukraine received the worst results in the study of personal safety and health indicators. Such low scores are negatively influenced by the conflict in eastern Ukraine and the COVID-19 pandemic. However, despite the COVID-19 pandemic, Ukraine has improved its performance in the international ranking, but there are still many problematic areas that should be addressed and the direction of state influence on them should be improved. According to the results of the analysis of the social development index, priority areas of state social policy were identified, among them: combating child poverty, ending the conflict in eastern Ukraine, improving access to quality medical services and effectively combating the pandemic, effective environmental policies to combat pollution, combating corruption, inclusive growth and development policies should be the key focus of modern economic development.

Uticaj kamatnih stopa na jednakost raspodele dohotka

Taking into account the fact that the total world debt (public and private) is about 300 trillion dollars, which represents one third of the annual world gross domestic product and the fact that it has been growing continuously for the last few decades, interest rates as a relatively variable and interest as an absolute variable are make elements that significantly affect economic and social developments. The subject of research in this paper is to examine the impact that interest and interest rates have on the (in)equality of income distribution (which is expressed by the Gini coefficient), and thus on the (in)equality of the distribution of total wealth. The conducted analyzes of empirical data, which refer to the member countries of the Organization for Economic Co-operation and Development (OECD), came to the conclusion that the growth of interest rates causes the growth of income inequality.