Persistent Income Inequality Research Articles

The declining affordability of dental care in New Zealand from 1978 to 2023.

In the early 2020s, nearly half of New Zealand adults reported that cost of treatment had prevented them from accessing dental care, with higher rates among Māori, Pasifika and individuals living in the most deprived areas. Unaffordable dental care may be explained by a rise in dental service fees over time relative to personal income, as documented in New Zealand between 1978 and 1993. However, there have been no contemporary estimates in New Zealand of how the affordability of dental care has changed. The aims of this study were to analyse the change in dental treatment fees and the personal income of New Zealanders from 1978 to 2023 and to explore differences in affordability of dental care by ethnicity. Average fees for dental treatments were sourced from surveys completed by practising New Zealand dentists. Earnings (from 1978) and personal income data (full population from 2000 and by ethnicity from 2008) were sourced from Statistics NZ and NZ Official Yearbooks. Inflation-adjusted changes in average fees, weekly personal earnings and income were calculated as a percentage change from 1978 levels for fees and earnings and from 2000 for personal income. For the five dental treatments with data available from 1978 to 2023, fees increased in the range of 75%-236%, while earnings increased by 46% over the same period. Fees for other treatments (with data available from 1981 to 2009) similarly increased and mostly surpassed changes in earnings. From 2008 to 2023 the overall increase in personal income (about 21% across all ethnic groups) kept pace with the rising cost of most treatments. However, due to persistent income inequalities, in 2023, Māori and Pasifika would need to spend a higher proportion of their weekly income (approximately 16% and 23% respectively) to receive the same dental treatments as NZ Europeans. Fees for dental treatments have risen markedly in recent decades, more sharply than the price of other goods and services.

Trends in socioeconomic inequalities in pancreatic cancer mortality in Canada: Evidence from the Canadian Vital Statistics Death Database

BackgroundPancreatic cancer is one of the leading causes of death in Canada and is projected to be the second leading cause of cancer death by 2030. This study sought to evaluate education and income inequalities in pancreatic cancer mortality in Canada between 1990 and 2019. MethodsUsing a unique census division level dataset (n = 280) constructed from the Canadian Vital Statistics Death Database, Canadian Census of Population (1991, 1996, 2001, 2006, 2016), and National Household Survey (2011) we assess socioeconomic inequalities in pancreatic cancer in Canada. Age-standardized Concentration index was used to quantify income and education inequalities in pancreatic cancer mortality. Trends analyses were conducted to assess changes in income and education inequalities in pancreatic cancer mortality over time. ResultsOur results show that crude pancreatic cancer mortality in Canada increased significantly from 10.23 for males and 9.65 for females in 1990, to 15.99 for males and 14.28 for females in 2019, per 100,000 people. The statistically significant negative values of age-standardized Concentration indices suggest persistent income and education inequalities in pancreatic cancer mortality in Canada. Trend analyses indicates reductions in income and education inequalities in pancreatic cancer mortality over time, particularly among females. ConclusionsSignificant income and education inequalities in pancreatic cancer mortality in Canada warrant public policy concern and action. Further research is required to understand whether differential access to treatment across socioeconomic groups played a role in the observed socioeconomic inequalities.

Financial Development and Income Inequality: Evidence from Thailand

Despite experiencing persistent income inequality, the Thai economy has continued to grow with a developing financial system. This study examines the relationship between financial development and income inequality in Thailand from 1980 to 2020. It is identified that a cointegration between financial development and income inequality follows a U-shape hypothesis. This result implies that income inequality reduced to a certain threshold in the early stage of financial development but subsequently increased as the financial system progressed. It is consequently recommended that policymakers prioritize creating an inclusive financial environment that promotes equitable access to financial services across all financial institutions, particularly for lower- and middle-income groups.

Fintech dividend: How would digital financial services impact income inequality across countries?

Discrimination and marginalization in the financial services provided by traditional intermediaries are often cited as one of the main causes of persistent income inequality across socioeconomic groups in many countries. Whether Fintech eliminates such prejudice and exclusion and promotes equitable income distribution is unclear. This paper examines the impact of Fintech digital financial services on income inequality. Using a two-step generalized methods-of-moments (GMM) estimator, we analyze unbalanced panel data from 65 countries spanning the years 2013–2019. Drawing on the most recent data available on the actual transaction volume of Fintech digital financial services, we generate evidence at the level of specific service segments. We find that Fintech digital lending and digital capital-raising services are significantly and negatively associated with income inequality. Furthermore, our results from mechanism analysis suggest that Fintech mainly impacts income inequality by improving the accessibility and efficiency of financial services. Overall, our findings imply that promoting Fintech is critical to improving financial inclusion and alleviating income disparity.

Exploring avoidable, preventable, treatable mortality trends and effect factors by income level

Abstract Background Avoidable mortality (AM) mean death caused by insufficient health policy and health care intervention, and is a rising public health issue. Income polarization in healthcare utilization is a significant concern. The aim of this study was to derive the trend and effect factors of AM, treatable mortality (TM), preventable mortality (PM) according to income levels in South Korea over the period 2008-2017. Methods This serial cross-sectional analysis was conducted using national health information data from 2008 to 2017. AM was classified based on criteria presented by the Office for National Statistics in 2011. Age-standardized AM was analyzed annually according to income levels. The odds ratio of AM was examined using multivariable logistic regression after adjusting health behaviors and clinical variables collected in 2016-2017. Results There were persistent income inequalities in AM, and the degree of inequality was larger in PM than in TM throughout the period. Medical benefit recipients had an AM of about 8.5 times higher than the highest income quartiles, and men were three times higher than women. In 2016-2017, compared to the highest income quartile, the risk of TM and PM of medical benefit recipients was about 10 times higher and 1.5 times higher in the first quintile. The risk of AM remained significantly higher in low-income levels even after adjusting for health behaviors and clinical variables. Conclusions While AM in South Korea has decreased over time, it remains high in low-income levels. There was a statistically significant difference in AM based on income level. Therefore, inclusion in health policy and services development and in health promotion programs is urgently required to address avoidable deaths and health inequalities for low-income levels. Key messages • AM in South Korea have declined over time, but, compared to the highest income quartile, the risk of TM and PM of medical benefit recipients was about 10 times higher. • Among health insurance eligible people, the first quintile, the more the proportion of TM and PM, and the highest income quartile, the lower the proportion of non-avoidable deaths.

Does Financial Development and Corruption reduce the level of Income Inequality? Evidence from Malaysia

Income inequality is an enduring issue and an important one to address, especially in the new era of digital transformation, as it is a crucial element in promoting persistent income inequality. The theory is that while financial development promotes economic growth, the mixed explanations of previous studies show that this does not always help low-income people in emerging economies. Moreover, the effects of globalization may reinforce motives and increase opportunities for international corrupt practices. It is, therefore, crucial to explore how corruption can be motivated by ineffective rules governing cross-border crimes and how technology can open up new avenues for corrupt behavior, for example by making it easier to find victims, accomplices and money. Profound socio-economic changes can also provide incentives and opportunities for corruption. This study examines how corruption and financial development affect the wealth gap in a developing country like Malaysia over the period 1995 to 2021. The empirical results show that financial development has a positive impact on income inequality. Moreover, the result also shows that corruption control is an insignificant determinant of per capita income in Malaysia. Even though the growth of the financial sector has led to a variety of outcomes, it has only helped to reduce income inequality. Income inequality is negatively and significantly affected by the interaction between financial development and anti-corruption. It is therefore important to promote financial development, prevent corruption and increase government transparency as these factors can promote sustainable economic development and resilience.

Towards Inclusive Growth: Perspective of Regional Spatial Correlation Network in China

China’s economic growth has been impressive, but the persistent income inequality poses a threat to its sustainability. To address this issue, we use the complex network analysis method for the first time to explore the structural characteristics of the regional spatial correlation network of inclusive growth (RSCN) of 26 provinces (autonomous regions and municipalities) in China from 1999 to 2020. We use exponential random graph models to explore the internal mechanisms and driving factors that shape this network. Our results show that inclusive growth dependencies between regions are widespread and increasing. Beijing, Shanghai, Jiangsu, and Zhejiang serve as benchmark regions, while provinces in the middle reach of the Yangtze River play an increasingly important bridging role. The northwestern region mainly acts as a receiving region. Our study identifies transitivity, reciprocity, and high interaction tendency as critical microstructures. Furthermore, we find that infrastructure, digital economy development, financial marketization, fiscal expenditure linkages, and inter-provincial trade linkages are crucial factors in shaping network relationships. Our study provides theoretical support for the development of China’s regional coordinated development strategy and sustainable economic growth policies.

The Inter-Relationship between Climate Change, Inequality, Poverty and Food Security in Africa: A Bibliometric Review and Content Analysis Approach

Despite the persistent income inequality and climate change shocks in Africa, there is limited research on their effects on food security. Hence, this study adopted a mixed-methods approach including a bibliometric analysis and content analysis to examine emerging themes in the literature on climate change, inequality and poverty, and food insecurity in Africa. The bibliometric data used were retrieved from the Scopus database for the period 2000–2022. The exercise revealed an increasing trend in the number of publications in the field, as well as strong collaboration between African countries. Specifically, most of the leading research was published by Kenyan, USA, and UK institutes. From the analysis, seven themes emerged; namely; (1) the impact of governance and policy on poverty alleviation, nutrition status, and food security; (2) the role of innovation and sustainable agriculture in mitigating climate change in developing countries; (3) integrating gender in evaluations of the impact of climate change on food security and livelihoods in Africa; (4) climate change adaptation among smallholders in building resilience for nutrition; (5) the role of institutions in assisting smallholders mitigate and adapt to climate shocks; (6) inequality, food unavailability, and agricultural production; and (7) gendered impacts of climate-smart agriculture in climate adaptation and mitigation. We also found out that there was a dearth of longitudinal studies on these seven themes. Another key element revealed by the study was the lack of policies that address the gender-differentiated impacts of climate change; hence, there is limited research on the agricultural gender productivity gap. Policies based on the tenants of socio-economic inclusion need to guide the distribution of wealth and economic participation in order to reduce inequality and improve food security and nutrition outcomes.

In Pursuit of Happiness: How Realistic is the American Dream? Understanding and Seizing Inequality

Abstract Recognized as the land of the free, the United States has provided the economic stage for many to craft their slice of the American dream. More questionable is that about 11.4% of its citizens are living below the national poverty line despite the national wealth. However, the acceptance that poverty for some is an unfortunate consequence of free markets is present among a strong majority of the American population. By using a ballpark method from, the Gini Coefficient, Equivalence Adjustment, and Mean Logarithmic Deviation, this study illustrates how persistent income inequality is a result of class warfare – a socioeconomic competition among the social classes which plays a vital role in the pursuit of the American Dream. The study recommends that to restore an economy where everyone gets a fair shot, the government needs to make sure that everyone plays by the same set of rules. Tackling high inequalities will create opportunities for all, and education should become a fundamental right for all and not a privilege for the few.

Value Creation and Socioeconomic Inclusion in South African Maker Communities

In socioeconomic environments affected by high and persistent income inequalities and unemployment, there is a need for participative approaches to innovation in support of socioeconomic inclusion. This article explores the features of collective action, in support of socioeconomic inclusion, identified in South African maker communities. Drawing on data from interviews with participants in seven maker communities, the study explores the kinds of value that participants experience through being part of these communities. Value creation is assessed in terms of the five overlapping cycles of value that Wenger et al. (2011) propose are present in successful communities and networks: immediate value, potential value, applied value, realised value, and reframing value. The study finds that all five value cycles are present in the experiences expressed by the South African maker community participants. The value is found to be particularly pronounced in the immediate value and applied value cycles. In respect of socioeconomic inclusion, the findings point to strong currents of social inclusion in the immediate value cycle, and strong elements of both social and economic inclusion in the applied value, realised value, and reframing value cycles.

Income inequality and the disease burden of COVID-19: Survival analysis of data from 74 countries

The COVID-19 pandemic presents a rare opportunity to assess national performance in responding to a historic crisis. It is not well understood how income inequality might be related to differential disease burden of COVID-19 across countries. Using recent data merged from Our World in Data 2020, the World Bank, and the Global Burden of Disease, we examined the association between income inequality (the Gini index) and COVID-19 infection and death rates among 74 countries with available data. After adjusting for differences in population size, age structure, longevity, population density, GDP per capita, health care expenditures, educational attainment, direct democracy index, stringency of implemented measures, and testing intensity for COVID-19, results from Cox Proportional Hazards regressions revealed that countries with more unequal income distribution carried a higher burden of COVID-19 infections and deaths in 2020. On average, each percentage point increase in the Gini index was associated with an 9% increase in the hazard of having a higher COVID-19 infection rate in the sample (AOR = 1.09, 95% CI 1.01, 1.18). The corresponding associated increase in the hazard of having a higher COVID-19 death rate was 14% (AOR = 1.14, 95% CI 1.06, 1.23). Countries with severe and persistent income inequality should develop national strategies to address this challenge to be better prepared for future pandemics.

Forest Area: Old and New Factors That Affect Its Dynamics

The analysis of the nexus between environmental degradation and economic progress has focused on polluting emissions. However, the forest area plays a significant role in achieving the Sustainable Development Goals (SDG) related to the environment. Forest area is directly related to air and water quality and the absorption of polluting residues. At the same time, in recent decades, economic progress processes have been internationalised and knowledge has improved in the context of persistent income inequality. The objective of this research is evidence that economic progress is destroying nature; for this, we use forest area as a measure of environmental quality. The nexus between the two variables is moderated by the globalisation KOF index, income inequality, and knowledge. Using non-linear methods, we find a threshold effect in globalisation, inequality, and economic progress. This result implies that before the threshold, the impact of the covariates differs from the impact after the threshold, generating findings different from those shown by the previous environmental literature. The results reveal that after a threshold, the impact of economic progress on forest area is negative. This fact reveals that the main obstacle to achieving environmental sustainability is in the least developed countries, where inequality and globalisation reinforce the degradation of the forest area. We find that knowledge is a mechanism to prevent deforestation, particularly in more developed countries. Those responsible for pro-environmental policy should promote global strategies to prevent economic progress from being based on the destruction of nature.

The Escape from Malnutrition of Chilean Boys and Girls: Height-for-Age Z Scores in Late XIX and XX Centuries.

We studied the trends of height-for-age (HAZ) Z scores by socioeconomic status (SES) groups of Chilean boys and girls aged 5–18 born between 1877 and 2001, by performing a meta-analysis of 53 studies reporting height-for-age sample data from which 1258 HAZ score datapoints were calculated using the 2000 reference growth charts for the US of the Centers for Disease Control and Prevention (CDC). We found stagnant mean and median HAZ scores of about −1.55 to −1.75 for the general population, and −2.2 to −2.55 for lower SES groups up to cohorts born in the 1940s. However, we found an upwards structural change in cohorts born after the 1940s, a period in which HAZ scores grew at a pace of about 0.25 to 0.30 HAZ per decade. Since this change happened in a context of moderate Gross Domestic Product (GDP) growth, high and persistent income inequality, and stagnant wages of the working class, we discuss the extent to which our findings are associated with the increase in public social spending and the implementation and expansion of a variety of social policies since the 1940s and early 1950s.

Effects of external financial flows on income inequality in selected Southern African Development Community member states

Background: The developmental goals of various emerging markets are quantitative targets set to reduce income inequality, alleviate poverty, reduce unemployment and achieve continuous inclusive economic growth amongst other key economic performance indicators. The interest is mainly on what can be done on economic performance to fight escalating inequality, increase economic growth and maintain low inflation amongst other economic indicators.Aim: The study investigates the effects of external financial flows on income inequality in the Southern African Development Community (SADC) region.Setting: The study shows the long-run stable relationship between the set of variables.Methods: The study have used the panel cointegration, autoregressive distributed lag and causality techniques.Results: The findings are that in the long run, remittances can strongly reduce income inequality, foreign direct investment (FDI) and cross border bank lending have an increasing effect and foreign aid can weakly reduce inequality. In the short run, FDI and cross border bank lending can strongly explain income inequality, and negative remittances and foreign aid are insignificantly explaining income inequality. Furthermore, the evidence from panel causality confirms the bidirectional causality amongst remittances, cross border bank lending and income inequality, and unidirectional causality in other sets of variables.Conclusion: It can be concluded that external financial flows can play a vital role to reduce persistent income inequality in the SADC region. It is recommended that the SADC governments need to formulate policies on remittances as they have positive returns on human capital, strengthen foreign aid institutions and create conducive environment to attract FDI.

Cultural attributes, income inequality, and ethnic differentials

We incorporate into a standard growth model endogenously determined cultural attributes that complement capital endowments. The resulting propagation mechanism implies that the economy exhibits multiple steady states, convergence to which depends, in particular, on the initial income distribution, featuring persistent income inequality and the lack of income convergence within the economy. An application of the baseline model indicates that the initially disadvantaged ethnic group is overrepresented in the low steady state, and its high steady state income level is lower than that of the initially advantaged group. Initial income redistribution and social integration affect the economy's steady state configuration. These results are interpreted in the light of existing evidence pertaining to such differentials in the US.

Selling salvation, selling success: neoliberalism and the US Prosperity Gospel

Abstract Neoliberalism relies on optimism. Without faith in meritocracy—unwavering belief that rewards will eventually and justly come to those who work hard enough—support for the capitalist system and belief in neoliberalism would unravel. How that optimism is perpetuated in the face of persistent income inequality and exploitation within the workplace requires an examination of those cultural institutions which reinforce and reproduce optimism over practical experience. This research focuses on one particular religious institution of the USA—the Prosperity Gospel. The Prosperity Gospel is a modern, neoliberal variation of Pentecostalism that is premised on the belief that a Biblical covenant between the individual believer and God guarantees that believer blessings of health and wealth, provided she demonstrates adequate faith. Accordingly, for those who are less adept at navigating the business world, financial success is still available for those believers who can dedicate themselves with the same frenzied ambition to the spiritual world. The Prosperity Gospel thus supports and sustains neoliberalism; the Prosperity Gospel is an institution which provides refuge to individuals from the exigencies of the market as well as a social practice which reinforces individual responsibility and fault. The Prosperity Gospel is the spiritual articulation of neoliberalism as well as a reinforcing institution.

Why Do the Rich Oppose Redistribution? An Experiment with America’s Top 5%

Wealthy individuals have a disproportionate influence on politics and firms. We study attitudes toward redistribution of a large sample of the top 5% in the U.S. in terms of income and financial assets, and find that they prefer less redistribution than a representative sample of the bottom 95%. The differences in tax attitudes and political views can be largely attributed to differences in distributional preferences, which we measured in an experiment where choices affected the pay of pairs of workers in a real-effort task. Wealthy Americans redistribute less to the low-income worker, thus accepting more inequality than the rest of the population. The gap in distributional preferences is primarily driven by individuals who acquired wealth over their lifetime rather than those who were born into wealth. Our findings raise the possibility that wealthy individuals contribute to the persistent income inequality in the U.S.

Fiscal Asymmetric Decentralization and the Influence of County Fiscal Autonomy on Household Effects in Kenya

Fiscal asymmetric decentralization is seen as the panacea in solving persistent income inequalities facing developing economies. Despite efforts to finance County governments, about 42% of Kenyan’s 47.6 million people still live below the poverty level. This study evaluates the influence of County fiscal autonomy on household effects in Kenya. Both primary and secondary data, collected from households in 47 county governments and the Commission on Revenue Allocation, respectively. A Sample of 4,813 households was drawn from 96,251 lists of households developed by Kenya National Bureau of Statistics. Cochran's correction formula was used. The result finds an insignificant negative correlation between county fiscal autonomy and household effects in Kenya. Further studies are recommended with diverse indicators. Findings in this paper are generalizable and a point of reference for policymakers in Kenya.

Energy Efficiency as Energy Justice: Addressing Racial Inequities through Investments in People and Places.

Structural racism in the form of racial residential segregation and the series of laws, policies and practices that continue to reinforce it, has robbed generations of African Americans of socioeconomic opportunity, wealth accumulation, safe, secure or energy-efficient housing, and full societal inclusion. Research indicates that African Americans are more likely to live in older, energy inefficient homes with structural deficiencies, outdated appliances and faulty energy systems. These conditions lead to a disproportionate burden of energy insecurity, defined as "the inability to adequately meet household energy needs" among African Americans across the economic spectrum. This, in turn, generates increased costs and decreased comfort, conditions closely linked to adverse physical and mental health outcomes. Persistent income inequality, wealth gaps and entrenched racial residential segregation have disenfranchised African Americans and reduced their ability to escape this pernicious cycle. Weatherization, which is the practice of protecting a building's interior from the elements while enhancing its energy efficiency and reducing costs, could be a catalyst for reducing the disproportionate energy burden affecting low-income individuals and ultimately improve health and social outcomes among African Americans. We argue for investing in policies that provide energy efficiency and weatherization assistance -- and not only energy bill assistance -- to provide a long-term and equitable solution to energy insecurity that is also a critical step toward restorative justice.

Persistence and determinants of income inequality: The Brazilian case

AbstractLatin America, which is a region known for its high and persistent income inequality levels, experienced a significant decline in income inequality since the second half of the 1990s. Brazil is a particularly interesting case in Latin America. While the country presented notable economic growth and improvements in income distribution in the early 2000s, Brazil continues to experience high levels of income inequality in comparison with other Latin American or advanced economies. This research contributes to the literature by examining the key drivers of income distribution and the degree of persistence of income inequality among Brazilian states. This research also improves upon previous works by using more recent and comprehensive data and addressing concerns regarding heterogeneity and endogeneity by using the system GMM estimation method. Our findings show that income inequality is highly persistent across Brazilian states and that government policies including income transfer programs made important contributions to reduce income inequality in Brazil. This study also shows that the decline in labor income ratios between different ethnic groups and the increase of the share of formal jobs in the labor market contributed to reduce income inequality.