Local Income Inequality Research Articles

Local Income Inequality and the Value of Corporate Tax Responsibility

ABSTRACT Corporate tax responsibility, or the obligation of companies to pay their “fair share” of taxes, is increasingly perceived as a component of firms’ social responsibility. Considering tax payments through the redistributive function, we examine how the association between corporate tax responsibility and firm value varies based on the presence of a salient social issue—local income inequality. Firms headquartered in areas of average income inequality have a negative relation between effective tax rate (ETR) and firm value, consistent with traditional economic theory and prior research. However, as local income inequality rises above average, the relation between ETR and firm value becomes more favorable (i.e., less negative). We interpret these findings as evidence that the relation depends on the salience of tax payments as a social issue. Further, the results are substantiated by firms whose socially responsible tax payments are consistent with their reputation as good corporate citizens. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: D22; H23; H25; H32.

Divided we abstain: Testing the effect of local income inequality on individual-level turnout using Norwegian administrative panel data

This paper investigates the relationship between income inequality and voting by utilizing exceptionally granular data that offer novel insights into local disparities. Existing research documents a larger turnout gap between rich and poor in areas characterized by high income inequality, causing concerns about further underrepresentation for low-income individuals and a larger democratic deficit. While previous studies have focused on inequality at higher aggregation levels, this paper advances the field by employing administrative data with complete income and validated voting records measuring inequality for neighborhoods hosting 1212 residents on average. The longitudinal setup allows rigorous modeling following the same individual in the same context over time. The results suggest that living in a neighborhood where the income difference between rich and poor becomes more pronounced discourages participation in national elections among low-income voters while it boosts participation among the rich, further accentuating the class-based inequality in political voice.

The role of public social expenditure for mitigating local income inequality: An investigation across spatial scales in Austria

AbstractThis paper investigates the role of municipal and provincial public social spending for local income inequality after taxes and transfers in Austria. We utilize a spatial multi‐level model, which allows us to analyze the contribution of three spatial scales (municipal, district, and provincial level) to municipal income inequality. Our analysis shows that the effect of public social spending on local Gini indices does not only differ across provinces but also across municipalities which indicates that the potential cushioning effect of social expenditure is highly localized. Further splitting total public social expenditure into three distinct categories (education, health, social protection) reveals that spending on social protection has the highest effect on local inequality across all provinces, while health spending does not exert a discernible influence in any province. The method and results presented in this paper are of international interest for policymakers and researchers who aim to investigate whether the same patterns hold true in other countries.

Exports and Income Inequality in Mexico

What is the effect of exports on local income inequality in developing countries? To respond to this question, we combine data on exports with a panel of welfare indicators for 2000 Mexican municipalities, and implement an instrumental variable approach to address endogeneity concerns. Our results show that a 10 per cent increase in the exports per worker reduces local income inequality, measured by the Gini coefficient, by 0.17 points (using a 0 to 100 scale). This is driven by income growth among households at the bottom of the income distribution. We also find that although exports do raise the total amount of labour incomes at the municipal level, average labour incomes do not change. This occurs because municipalities with growing exports also experience an increase in employment and working-age population driven by inflows of returning migrants and lower emigration outflows. Remittances also decline in response to rising exports.

Local Financial Institutions and Income Inequality: Evidence from Brazil's Credit Cooperative Movement

ABSTRACTLocal financial institutions can play a crucial role in reducing income inequalities at the within‐country level by promoting inclusive economic growth and development across time and space. This is against a backdrop of increasing financial and economic fragility, to which emerging economies have also been exposed over more recent decades and years. This article adds emerging economy evidence from Brazil to an empirical literature on the income inequality implications of cooperative financial institutions. Panel‐data estimations for 2004‒19 reveal that Brazilian credit cooperatives have gone beyond commercial banks in supporting communities that have traditionally been underserved financially. Additionally, the article provides new evidence and insights on credit cooperatives’ resilience in the context of a relatively recent but severe economic crisis in Brazil. The results indicate that credit cooperatives have helped fill gaps in finance and economic opportunity that tend to arise in an emerging economy setting. Furthermore, the contribution of credit cooperatives in filling these gaps is found to be more significant at lower levels of development. These findings add theoretical and, importantly, empirical support to the relationship channel of financial inclusion, which is in line with the optimistic perspective in this debate.

Economic zones and local income inequality: Evidence from Indonesia

Economic zones can be powerful drivers of economic growth in developing countries. However, less is known about their distributional impact on the local society. This paper provides empirical evidence from Indonesian provinces on the relationship between economic zones and within-province income inequality. We apply fixed-effects panel estimation to province-level data for the whole of Indonesia, which we then complement with separate studies on the opening of three economic zones in three provinces using the synthetic control method. The results suggest that the above relationship is positive overall. The estimated rise in income inequality after a zone opens is, however, relatively small on average and may be short-lived. Moreover, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One possible explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy.

Fuel for regional income inequality in South Africa: redistribution effect of taxes

ABSTRACT This paper analyses the effect of fiscal redistribution on regional income inequality in South Africa using the spatial models. Yearly provincial-level data on different spending categories are considered for the period from 2014 to 2018. The study uses various spatial panel specifications to control for both spatial dependence and heterogeneity among provinces. When factor incomes and market prices are controlled for, empirical results indicate that local inequality spills over to neighbouring provinces. Particularly, a basic point increase in local income inequality contributes about 0.14 to 0.158-point increase in income inequality of neighbouring provinces. Furthermore, provincial spending allocation to social development grant and education spurs regional income inequality while expenses receipt on health, infrastructure, and conditional grants exhibit mitigating effects on provincial income inequality. These findings suggest that health, infrastructure, and conditional grants are key sectors to prioritize in the government’s efforts to reduce income inequality.

The impact of tropical cyclones on income inequality in the U.S.: An empirical analysis

Despite a growing number of studies on the effects of tropical cyclones on economic growth, not much is known about their effects on income inequality. This paper addresses this question by using a panel data set of U.S. counties affected during the period 2010–2019. It exploits geophysical information to construct the disaster intensity predictor, and shows that storm shocks significantly decrease local income inequality levels in the year that they occur. A close study of the composition effects reveals several interesting patterns. First, the immediate impact is driven by the two lowest quintiles and the top quintile of the income distribution. Second, the beneficial effects on income inequality are stabilised in the short-run and the frequency of events is a crucial parameter to consider as repeatedly exposed counties exhibit larger responses after a cyclone strike than their rarely exposed counterparts. Finally, among others, this study stresses the importance of social safety nets in counteracting tropical cyclones’ adverse income distributional effects.

湿地保护、生态旅游与农民增收——以云南拉市海湿地为例

PDF HTML阅读 XML下载 导出引用 引用提醒 湿地保护、生态旅游与农民增收——以云南拉市海湿地为例 DOI: 10.5846/stxb202201100080 作者: 作者单位: 作者简介: 通讯作者: 中图分类号: 基金项目: 国家社会科学基金项目（18VSJ100）；国家自然科学基金项目（41571519）；中国人民大学2020年度拔尖创新人才培育资助计划成果 Wetland conservation, ecotourism and farmers' income: A case study of Lashihai Wetland in Yunnan, China Author: Affiliation: Fund Project: 摘要 | 图/表 | 访问统计 | 参考文献 | 相似文献 | 引证文献 | 资源附件 | 文章评论 摘要:生态保护与经济发展之间的矛盾是发展中国家普遍存在的问题。近年来中国开展了大规模的生态保护行动，但对于这些行动的经济效应评估主要集中在森林和草地保护，而对湿地保护鲜少关注。选取云南一个典型的高原湿地，基于当地实施的退耕还湿政策，运用倾向得分匹配（PSM）和双重差分法（DID）检验了退耕还湿对农民收入和生态旅游的长期动态影响，并进一步讨论了政策效果的异质性以及补偿资金在湿地保护中的作用。研究发现：（1）退耕还湿具有显著的增收效应，使人均收入提高了约40%，并促进了生态旅游的发展；（2）随着时间推移，退耕还湿对农民收入和生态旅游的促进作用不断增强，在多重因素的综合影响下，农民通过生计转型实现长期增收；（3）退耕还湿存在明显的异质性影响。在不同收入群体中，低收入和高收入群体的增收效应最明显，而对生态旅游的影响则主要体现在高收入群体中；此外，距离湿地资源越近的地区，农民越倾向于通过开展生态旅游实现增收；（4）补偿资金在湿地保护中具有双重作用，不仅在保护行动前期作为安全网维持农民收入不降低，而且作为启动市场和吸引民间资本参与的种子资金，进一步支持了生态旅游的发展。研究结果能够为湿地保护与社会经济协调发展提供新的实证证据。 Abstract:The conflict between ecological conservation and economic development is a common concern for the developing countries. In recent years, the Chinese government has carried out large-scale ecological conservation initiatives, but assessments of the economic effects of these initiatives have mainly focused on forest and grassland conservation, with little attention paid to wetland conservation. This paper provides some empirical evidences to understand the economic impact of wetland conservation in a region where development has been constrained by wetland conservation. The paper selects a typical highland wetland in Yunnan Province and uses propensity score matching (PSM) and difference in difference (DID) to examine the long-term dynamic effects of wetland conservation on farmers' income and ecotourism livelihoods based on the local policy of the Farmland to Wetland Conversion Program (FWCP), and further discusses the heterogeneity of policy effects and the role of compensation funds in wetland conservation. The results show that:(1) the FWCP has a significantly positive impact on the farmers' income, increasing per capita income by about 40% and promoting the development of eco-tourism livelihoods. (2) As time goes by, the role of the FWCP in promoting farmers' income and eco-tourism has continued to increase. Under the combined effect of multiple factors, the farmers achieved long-term income growth through livelihood transformation. (3) The FWCP has obviously heterogeneous effects. Among different income groups, low-income and high-income groups have the most obvious income-increasing effect, while the impact on ecotourism by the FWCP is mainly reflected in high-income groups, so there may be a risk of exacerbating local income inequality. In addition, the closer to the wetland resources, the more farmers tend to increase their income by developing ecotourism. (4) Compensation funds have a dual role in wetland conservation. Not only does it act as a safety net to maintain farmers' incomes from decreasing in the early stages of conservation action, but it also serves as seed money to stimulate market and induce social capital participation, further supporting the development of ecotourism. The findings of this paper can provide new empirical evidence for the coordinated development of wetland conversation and socio-economics. 参考文献 相似文献 引证文献

Local income inequality, rent-seeking detection, and equalization: a laboratory experiment

Local income inequality, rent-seeking detection, and equalization: a laboratory experiment

Does local income and wealth inequality affect mortality? A register-based fixed effects study of 58 million person-years.

Aim: The Income Inequality Hypothesis asserts that income inequality causes negative health burdens within wealthy nations. We aimed to test the hypothesis in Norway, examining the relationship between both income and wealth inequality, net of individual economic resources, and individual all-cause mortality. To this day, little is known about the association between wealth inequality and mortality. In Norway, wealth is far more unequally distributed than income and can be a more prevalent indicator of long-term financial security. Methods: We estimated discrete-time event history models from Norwegian register data, covering all Norwegian-born men and women aged 25-84 years during the period 1993-2013. We include fixed effects at the municipal level, adjusting for time-invariant characteristics in the local area. Our data contain approximately 58.5 million person-year observations after sample restrictions. Results: Overall, increased income and wealth inequality (measured using Gini coefficients of individuals' pensionable income and net worth) is not associated with higher mortality risk in Norway. With a one percentage point increase in income inequality, odds ratio (OR) for mortality was estimated at 0.998 (95% confidence interval (CI) 0.996-1.001) for men and 1.002 (95% CI 0.999-1.006) for women. Corresponding OR from increased wealth inequality was 0.998 (95% CI 0.997-1.000) for men and 0.999 (95% CI 0.998-1.001) for women. Conclusions: Our results raise further doubts about the existence of a contextual effect of economic inequality on health, at least in a Nordic setting. Extensive health policies, relatively generous benefits and high levels of trust could potentially function as a buffer against negative health consequences of increased economic inequality in Norway.

The paradox of local inequality: Meritocratic beliefs in unequal localities.

A puzzle has emerged amidst rising inequality: why do people profess high levels of belief in meritocracy even as income gains are increasingly concentrated at the top? In light of contradictory theories and evidence, we undertake the first assessment of the relationship between local income inequality and meritocratic beliefs outside the United States, using data from the UK Household Longitudinal Study. We find that the positive relationship between country‐level income inequality and meritocratic beliefs identified in the recent literature does not translate straightforwardly below country level: there is no robust relationship between local income inequality and meritocratic beliefs in England. However, there is a robust—and somewhat paradoxical—positive association between high local income inequality and meritocratic beliefs among those with the lowest incomes. On average, respondents with annual household incomes of £10,000 are five points more likely (on a 100‐point scale) to believe their hard work will pay off if they live in the most rather than the least unequal places in England. We also show that this applies beyond the specific case of meritocratic beliefs: low‐income respondents in unequal places are also notably more satisfied with their own (low) income than similar respondents in more equal localities. In line with system justification theory, we argue that belief in meritocracy serves as an important tool of psychological resilience for low‐income individuals who regularly come into contact with others more economically fortunate than themselves: though it legitimates their current position at the bottom of the status hierarchy, this belief also offers the promise of future advancement. While this reduces concern about the psychological effects of growing local income inequality on the most economically vulnerable, it also suggests that there is little prospect of demand for systemic economic change emerging from what might have been considered the most likely places.

Show me the money: Income inequality and segregation in UK cities

AbstractThe social geography of cities is argued to be changing globally; rising economic inequality is associated with increasing segregation. Yet, income inequality has been predominantly mobilised through national and regional imaginaries. In cities, a number of factors such as the normative policy motivation to intervene in ‘disadvantaged’ neighbourhoods, have led to (concentrations of) poverty becoming prioritised in empirical studies of household income. This paper addresses a gap in understanding the relationship between local income inequality and the segregation of high‐income households at the urban and neighbourhood scales in England and Wales. The results highlight that wealthier cities and districts (Cambridge, Winchester, and Rushcliffe in the Nottingham conurbation) have higher income inequality (Gini), but are less segregated (Index of Dissimilarity). Lower average income cities tend to be more segregated, due to self‐segregation of high‐income households into ‘pockets of affluence.’ These results confirm that high‐income households are the most segregated group in our sample, consistent with trends in global urban segregation patterns. The research also highlights just how prevalent low income is in urban neighbourhoods, making the case for high income as the designated minority population in segregation studies. In our detailed case study of Nottingham, income homogeneity is typical of areas with high deprivation. Neighbourhoods with a high Gini coefficient could be described as mixed income: the Gini is raised by the presence of high‐income households in urban neighbourhoods. We argue that the Gini therefore offers potential as an indicator of social mix in urban studies. These results are based on an experimental household income dataset released by the Office of National Statistics, with analysis of all core cities in England and Wales, alongside Derby, Leicester, Cambridge, Southampton, and Winchester, followed by a detailed case study of Nottingham (UK) and its extended suburban boundary.

Fracking and Local Income Inequality

Fracking and Local Income Inequality

Inequality in Place: Effects of Exposure to Neighborhood-Level Economic Inequality on Mortality.

This study contributes to the debate on whether income inequality is harmful for health by addressing several analytical weaknesses of previous studies. Using the Panel Study of Income Dynamics in combination with tract-level measures of income inequality in the United States, we estimate the effects of differential exposure to income inequality during three decades of the life course on mortality. Our study is among the first to consider the implications of income inequality within U.S. tracts for mortality using longitudinal and individual-level data. In addition, we improve upon prior work by accounting for the dynamic relationship between local areas and individuals' health, using marginal structural models to account for changes in exposure to local income inequality. In contrast to other studies that found no significant relation between income inequality and mortality, we find that recent exposure to higher local inequality predicts higher relative risk of mortality among individuals at ages 45 or older.

Local financial access and income inequality in Chile

This paper proposes a local financial access indicator which captures the accessibility of localities isolated from urban centers. As a case of study, we use Chilean data to show that higher level of local financial access reduces income inequality.

The Local Spillover Effect of Corporate Accounting Misconduct: Evidence from City Crime Rates*

ABSTRACTThis study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct, there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible accounting frauds (e.g., greater media attention and larger stock price declines) are more strongly associated with a future increase in financially motivated neighborhood crime. We also find that the association between fraud revelation and increased future financially motivated crime is strongest when local job markets are shallower and where local income inequality is high, consistent with adverse shocks from fraud putting pressure on local communities. Combined, our study provides evidence that the societal ramifications of corporate accounting misconduct extend beyond adversely impacting a firm's capital providers and industry peers to negatively influence the daily life of the residents in the firm's local community.

Does inequality have a silver lining? Municipal income inequality and obesity in Mexico.

Income inequality and obesity are both widespread socioeconomic issues, particularly salient in middle-income countries. This article seeks to detect the relationship between local income inequality and excess weight in Mexico, using robust municipal income inequality measures generated through small area estimation method and instrumental variable multilevel estimations. Our results emphasize a negative impact of municipal income inequality on individual bodyweight, especially for women. We also explore the potential channels through which income inequality may decrease bodyweight. Three-stage least squares estimations highlight that the social capital pathway, the public policy pathway and the psychological pathway help to explain the negative effect of inequality on excess weight. Our results are fairly robust to alternative inequality measures and nutritional indicators.

Are All Politics National? County-Level Social Contexts and Inequality Remediation Attitudes, 2006 to 2012

Despite growing economic inequality in recent decades, public support for government intervention to address it has been stable. A substantial literature has documented the individual-level demographic, social, and political characteristics that are associated with the extent to which individuals favor government intervention to reduce inequality. However, less work has examined how the local social environments that individuals are embedded in shape attitudes regarding inequality remediation. Using data from the General Social Survey (2006–2012) and other data sources, the authors examine whether local economic and social characteristics are associated with individuals’ support for government intervention to address income inequality in the United States during the Great Recession. Specifically, the authors link restricted General Social Survey data with place-level identifiers to county-level data on local income inequality, racial segregation, and partisan leanings. Broadly, the authors find that although individual-level conditions and year fixed effects are strongly correlated with perceptions about inequality remediation, most local-level characteristics were not strongly nor significantly associated with individual attitudes regarding government intervention to address inequality. These findings suggest that individuals formulate policy stances regarding inequality on the basis of national messaging rather than on observations within their own communities.

Community Income Inequality and the Economic Gap in Participation

This paper reveals how community-level income inequality affects political participation. We theorize that local experiences of inequality increase awareness of the unequal distribution of income in the US, provoking political activity, particularly among those with more resources enabling them to act. Using restricted geographic data from the 2012 and 2016 ANES, we show local income inequality increases political participation, especially among the affluent. Using an instrumental variables design, we demonstrate these findings are not the result of reverse causality. Our results reveal the importance of considering both individual- and community-level factors when evaluating political behavior. They also suggest that as income inequality in the US continues to rise, so too will the gap in political participation between the rich and the poor, potentially leading elected officials to be even less responsive to the preferences and needs of the less affluent.