Reduce Income Inequality Research Articles

Sustainable Maize Storage Technology Adoption in Ghana: Implications for Postharvest Losses, Farm Income, and Income Inequality

ABSTRACTThe Purdue Improved Crop Storage (PICS) bag, a sustainable post‐harvest storage technology, can address the high postharvest losses that are a major threat to economic development, food security and the environment in Africa. However, there is limited empirical research on this technology. This study therefore aims to fill this knowledge gap by analysing the factors influencing the diffusion and adoption rates of PICS bags and estimates the impact of the technology adoption on postharvest losses, farm income and income inequality in the Ashanti region of Ghana. The results show that less than 20% of farmers adopt the PICS bag, suggesting low adoption despite the widespread exposure of 51.75%. The technology adoption rate could be increased by 20% if all the farmers were exposed to it. It reduces postharvest losses by 14.2%–19.1%, increases farm income by 89.7%–91.2% and reduces income inequality by 51.33%. These findings suggest that promoting the technology can stimulate sustainable rural development by improving farmers' welfare.

Analyzing the Impact of Fiscal and Monetary Policies on Income Distribution in Central Asian Economies

Abstract This study examines the impacts of macroeconomic policies (i.e. fiscal policy through government consumption spending and total tax revenue, and monetary policy through broad money and real interest rate) along with other regressors such as inflation, Gross Domestic Product (GDP) per capita, remittances, exchange rate, and financial development on income distribution in four Central Asian countries from 1995 to 2020. After conducting unit root tests, the Autoregressive Distributed Lag (ARDL)/Pooled Mean Group (PMG) approach was implemented for empirical analysis. The results show that both fiscal and monetary policies have positive and negative effects on income inequality. Moreover, inflation is found to increase income inequality, while financial development, higher levels of per capita income, and foreign remittances decrease inequality in the panel and individual country analyses. These findings suggest that coordinated policies, along with increased remittances and financial sector development, are needed to reduce income inequality.

Implications of public policies performance on social inequality worldwide

This study probes the linkage between public policy (represented by GDP growth, inflation, CO2 emissions, and unemployment factors) and social inequality indicators, paying attention to economic, environmental, and social elements. The study questions the impact of these policies on overall social inequality as one measure and its separate dimensions, which are gender, income, education, and life expectancy, whereas data was gathered between 2010 and 2021 from the World Bank and the United Nations Development Programme (UNDP) for 139 countries. The linear regression revealed a significant relationship that explained 51% of the variance in overall social inequality, except for unemployment. Regarding separate dimensions of social inequality, the findings point out that GDP growth and inflation both affect life and gender inequality, whereas unemployment only affects income inequality; on the other hand, the CO2 emissions factor has an inverse effect on all dimensions of inequality (income, life expectancy, education, and gender inequalities). Considering the implications, increased CO2 emissions would reduce income inequality by boosting job creation, but they also pose environmental and health hazards, necessitating sustainable development strategies. Rising unemployment exacerbates income distribution, demonstrating the need for policies that enhance job stability and reduce inequality. Additionally, it necessitates investing in healthcare and education, eradicating gender inequality, and implementing sustainable strategies to foster economic growth while considering the consequences of inflation on life and gender justice. Thus, realizing these principles would build a sustainable and equitable society that balances economic enhancement with environmental protection and achieves equal opportunity.

Effects of the Minimum Wage (MW) on Income Inequality: Systematic Review and Analysis of the Spanish Case

The minimum wage has become a standard measure in the economic and social policies of countries all over the world. The primary objective of this measure is to guarantee that workers receive a minimum wage that allows them to lead a decent life, thereby reducing inequality and poverty. However, studies on the minimum wage have not focused on assessing the effects on these dimensions but only on employment. The objective of this study is to address this research gap by analysing the effects of minimum wage increases on income inequality and poverty. To this end, firstly, a systematic review of the empirical analyses was conducted using the PRISMA methodology, with a view to ensuring that all empirical evidence was available. Secondly, the Spanish case was examined. The significant increase in minimum wage in Spain in 2019 (21.3% in real terms) presents an invaluable opportunity to utilise this event as a natural experiment to generate new evidence. A difference-in-differences approach was employed to assess the impact of this phenomenon in the period 2018–2019 with microdata from European Statistics on Income and Living Conditions (EU-SILC for Spain). In doing so, two basic scientific contributions were made. The first one, a systematic, exhaustive, and up-to-date literature review (up to June 2024), as there is, to our knowledge, no recent systematic review of this relationship (minimum wage vs. inequality). The available evidence indicates a clear inverse relationship between the minimum wage and inequalities and poverty. The second one, regarding the Spanish case, there has been a dearth of scientific studies on this subject. Thus, this paper provides new scientific evidence demonstrating that a significant increase in the minimum wage can significantly improve the income of low-wage earners, thereby reducing income inequality and in-work poverty. Furthermore, there is evidence of a spillover effect towards income groups closer to the treatment group.

The application of industrial robots and changes in capital-labour income disparity in China

The technological revolution, particularly the rise of industrial robots and artificial intelligence, has significantly impacted global economic growth and income disparity. This study examines the impact of industrial robot applications on the capital-labour income disparity in China, a country with the highest number of industrial robot applications and a commitment to reducing income inequality. The findings indicate that industrial robots intensify the income disparity between capital and labour, particularly in economically underdeveloped regions characterized by less sophisticated industrial structures, low levels of human capital, underdeveloped physical capital, and inadequate market economies. The promotion of industrial structure sophistication, enhancement of human capital levels, deepening of physical capital, and advancement of market development can mitigate the adverse impact of industrial robot applications on the income disparity between capital and labour. The study underscores the necessity of institutional reforms and targeted policies across these dimensions to address the negative impacts of new technologies.

The Influence of Open Unemployment Rates, Inflation and Minimum Wages on Income Inequality in The North Sumatra Region

Income inequality is the existence of differences in income in a society, giving rise to real income inequality in society. As a result, the rich get richer and the poor get poorer. In fact, when it comes to income inequality, the more flexible wages are, the greater the impact on employment. However, inflexible wages, which are said to be an inability to respond to changing market conditions, lead to ever-increasing poverty and inequality. This research aims to determine the correlation between the influence of open poverty levels, inflation and minimum wages on income inequality in North Sumatra. The Central Statistics Agency (BPS) noted that the level of expenditure disparity between residents in North Sumatra has widened since September 2023. The Gini ratio, which measures this inequality, is recorded as high. BPS Based on North Sumatra data, this large deviation was caused by the increase in fuel prices at the beginning of September last year. The research method used is Multiple Linear Regression which is processed using eviews 10 software. The approach used in this research uses a quantitative approach with associative analysis, with a population from the North Sumatra BPS report for 2014-2023. The results show that the open unemployment rate and minimum wage have an effect on income inequality. Therefore, the solution offered is a policy of establishing equal distribution of employment income by opening job vacancies and training as well as equal distribution of salary income which is applied evenly in various regions so as to reduce income inequality in North Sumatra

Individualism, innovation, and inequality: Exploring the nexus

We provide an alternative explanation for the direction of technological change and the related wage inequality between skilled and unskilled workers. To this end, we formulate a skill-biased technological change model in which households’ decisions on consumption, savings, and human-capital accumulation are influenced by the level of individualism. We conclude that more individualistic cultures experience higher technological-knowledge bias toward skilled technologies, larger output growth rates, and higher wage inequality between skilled and unskilled workers. We also find that union bargaining only reduces wage inequality between skilled and unskilled at moderate levels of individualism, while introducing redistributive income taxes does not necessarily reduce income inequality.

New technologies and income inequalities into Sub-Saharan Africa: Using a new technological indicator

The studies which analyzed the impact of technology innovation on income inequalities have considered only one factor of change at a time. The results are overall inconclusive: technology innovation appears to either reduce or increase inequality, depending on which factor is considered. In the literature of technological change, there is a technology innovation indicator that comprises multiple factors simultaneously. Using this technology innovation indicator and three different measures of income inequality (Gini index, Atkinson index, and the ratio of Palma), the paper analyzed the effect of technology innovation on income inequalities into Sub-Saharan Africa countries. A dynamic panel model was specified and estimated with the Generalized Moments Method (GMM) in System. The data used come from the Global Consumption and Income Project (GCIP), the World Development Indicator (WDI) and the World Governance Indicator (WGI). They were observed over the period 1996–2014 of 30 Sub-Saharan Africa countries. The paper finds robust evidence that technology innovation contributes to reducing income inequalities into Sub-Saharan Africa countries. The implementation of learning policy through improving education condition associated with social policy can contribute to limit the income inequalities due to technologies change into Sub-Saharan Africa countries.

The short- and long-run effect of human capital on income inequality: Empirical evidence in the ASEAN region.

Human capital is a nation's primary source of inner strength to achieve sustainable economic growth and development. Meanwhile, income inequality is a critical issue preventing sustainable economic growth and social transformation, especially in developing countries. This paper investigates the effect of human capital on income inequality in both the short and long term using the mean group, pooled mean group, and threshold regressions for the ASEAN-7 (including Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) from 1992 to 2018. The paper develops a theoretical linkage between human capital and income inequality by combining the learning theory and the Kuznets hypothesis. This linkage is then tested using data from the ASEAN countries. Findings from the paper indicate that human capital reduces income inequality in the short run in the ASEAN countries. However, the effect is reverted in the long run, suggesting that human capital may increase the income gap in these countries. Particularly, the inverted U-shaped relationship between human capital and income inequality is established for the ASEAN countries whose GDP per capita is lower than USD 8.2 thousand per year. In contrast, the U-shaped relationship is found for the countries with income per capital of more than USD 8.2 thousand. All these findings suggest that social policies targeting reducing income inequality should be prioritized and stay at the centre of any economic policies to achieve sustainable economic growth and development in the ASEAN countries.

INCOME INEQUALITY, ECONOMIC GROWTH, AND INSTITUTIONAL FACTORS: A COMPARATIVE ANALYSIS AT THE EUROPEAN UNION (EU) LEVEL

The rising income inequality around the world and its persistence represent a social phenomenon raising concerns at all levels (global, regional and country) for governments and pose huge challenges to master it and to identify effective solutions. The aim of the paper is to provide a comparative insight at the European Union (EU) level involving 25 Member States regarding the interplay between income inequality, economic growth, and institutional quality. Gini Index sourced from World Income Inequality Database, GDP per capita series extracted from the World Bank database, and institutional indicators collected from the World Governance Indicators database represent the examined variables over the period 1990-2022. Their dynamic is comparatively analysed and discussed. The clustering method is applied to identify similarities and differences between European Union countries in terms of the interplay between income inequality, economic growth and institutional factors and to draw relevant conclusions for future effective policy measures meant to reduce inequality and to boost economic growth. The clustering analysis based on the average growth rate of income inequality and per capita GDP revealed that European Union countries are differently facing the challenge of income inequality rising. Six groups of countries with similar paths regarding the income inequality and economic growth were identified. High-income countries face low levels of income inequality but with an upward trend. Economic growth is accompanied with high levels and increasing levels of income inequality. The institutional quality level may strength the capacity of a country to address the problem of rising income inequality, but it remains unclear the interplay of institutional quality dynamic in reducing income inequality. The implications of the paper’s findings are framed in the context of the European policies.

The Influence Of Information And Communication Technology (ICT) Development On Income Inequality Through Economic Development

Over the last few decades, the development of information and communication technology (ICT) has had a major impact on the economy and society more broadly. There is currently a consensus that developments in information and communication technology (ICT) can provide a boost to sustainable economic development. This study aims to analyze the influence of the development of information and communication technology (ICT) on income inequality through economic development in Indonesia. Analysis of the research uses econometric analysis using the fixed effect model with the Two-Stage-Least-Square (TSLS) method with a period of 2017–2021 to understand the extent to which the development of information and communication technology (ICT) can facilitate reducing income inequality through economic development. The data used in this study came from the Central Statistics Agency (BPS), the Ministry of Finance of the Republic of Indonesia, the Ministry of Communication and Information, and the National Socioeconomic Survey (SUSENAS). The results of this study found that the influence of significant positive ICT development can encourage reduced income inequality through economic development in Indonesia. Social assistance provided by the government has shown significant help in reducing inequality in Indonesia. ICT development can encourage reducing inequality and economic development outside Java Island but not in Java Island. The influence of ICT development is greater in provinces with the lowest service sector compared to provinces with the highest service sector.

State-Level Income Inequality as a Determinant of Suicide Mortality in the United States.

Income inequality has been increasing for decades and is now known to be related to many downstream health outcomes, where greater inequality is a predictor of poorer health. Results of investigations into the relationship between income inequality and suicidality have been mixed. This study leverages the most recent data available from the National Longitudinal Mortality Study to investigate the relationship between state-level income inequality and suicide mortality. A series of rigorously controlled logistic regression models, employing multiple measures of inequality, and various suicide mortality case-control specifications are used to investigate the phenomenon. Results indicate that the odds of suicide mortality increase with inequality, and this result is invariant across all models. A reduction in the Gini coefficient from the highest to lowest values of income inequality observed in U.S. states may reduce the odds of suicide mortality by 20 percent to 55 percent or more. Findings have application for social workers and other mental health professionals with respect to clinical assessment and treatment. Likewise, community organizers, policy advocates, and legislators should be aware that policy solutions reducing income inequality in the United States are a mechanism for alleviating the suicide mortality burden.

The Influence of Gross Regional Domestic Product Per Capita and Foreign Direct Investment on Income Inequality: An Empirical Study of 34 Provinces in Indonesia

The study investigates the correlation between Gross Regional Domestic Product (GRDP) per capita, Foreign Direct Investment (FDI), and the Gini coefficient using panel data from 34 provinces in Indonesia from 2015 to 2023. A panel data regression analysis method was employed for data processing to optimize estimation results. The results obtained from the analysis using the Fixed Effects Model (FEM) consistently show strong positive outcomes. The findings imply a direct connection between higher GRDP per capita, increased FDI, and a higher Gini coefficient, suggesting that more significant foreign investment and higher per capita GDP contribute to increased income inequality across the Indonesian provinces. The study emphasizes the critical role of regional governments in addressing these disparities. It suggests strategies such as implementing regional policies to boost investment, enhancing infrastructure, creating more business opportunities, and promoting tourism. The proposal to establish the National Capital City (IKN) in East Kalimantan is presented as a long-term solution to reduce income inequality among the provinces.

The impact of technical change on income inequality in Vietnam

PurposeThe primary purpose of this study is to explore the effect of technical changes on provincial-level income inequality in Vietnam. The authors also investigate whether the quality of institutions and human capital level moderate this relationship.Design/methodology/approachThis research applies the fixed-effect and random-effect models on a balanced panel data set of 63 Vietnamese provinces/cities from 2010 to 2020.FindingsThe study’s empirical results show that technical improvement has a nonlinear influence on income disparity in Vietnamese localities. When the local level of technology is limited, technological change can mitigate income disparity. However, as local technological levels increase, inequality tends to rise. Moreover, the study also reveals that the quality of a province’s institutions and the level of human resources are factors that moderate the correlation between technological change and income inequality. For provinces with better institutional quality and/or better human resources, inequality tends to decline under the impact of technological change.Practical implicationsThe results of this study suggest that while encouraging technology advancement, localities should also ensure sustainable development, reduce income inequality and focus on improving institutional quality and human resources development.Originality/valueThere are increasing concerns about the impact of technical change on inequality in income distribution; however, empirical evidence on this relationship in developing countries remains scarce. This study is among the few attempts to examine this issue at the provincial level of a developing country considering the moderation effect of institutional quality and human capital level.

Is fair carbon mitigation practicable in China? Insights from digital technology innovation and carbon inequality

The uneven matching of distribution and targets in practicing carbon emission reduction has led to emission reduction inequality, while digital technology innovation (DTI) is expected to reduce these gaps. Therefore, this study casts new insights into modeling the nexus between DTI and carbon inequality using China's 286 prefecture-level cities from 2000 to 2021. Remarkably, city-level DTI performance is innovatively proxied by the related patent application volume, while the carbon inequality index within the region is measured using the environmental Gini coefficient. The main findings of this study include: (1) DTI robustly mitigates China's carbon inequality. (2) The effect of DTI is asymmetrically more significant in regions with a higher carbon inequality index. (3) DTI heterogeneously reduces carbon inequality more obviously in the eastern and central regions, and technology innovation in digital product manufacturing and digital technology application industries reduces carbon inequality more significantly. (4) More precisely, DTI strengthens carbon justice through income equalization, spatial agglomeration, and digital inclusion effects. Specifically, DTI significantly reduces income inequality and the digital economy's spatial agglomeration level and enhances digital financial inclusion, thereby reducing carbon inequality. This study also provides the policy implications for China.

FinTech and sustainable development: A systematic thematic analysis using human- and machine-generated processing

We conducted a systematic literature review (SLR) by integrating FinTech with the the United Nations' (UN) Sustainable Development Goals (SDGs). By focusing on three dimensions (inclusive finance, economy, and environment), we identify how FinTech may influence sustainable development. We innovate using human- and machine-generated processing to develop themes, making systematic literature reviews more objective and advancing replicability and reproducibility. This study demonstrates the contribution of FinTech in expanding the investment opportunity set by including environmental projects and increasing the diversity and participation rates of savers and lenders. Through this process, FinTech increases its market completeness. Accordingly, FinTech can increase economic growth by achieving higher productivity and sustainable growth through diversification, technological upgrades, entrepreneurship, creativity, and innovation. Additionally, FinTech can accelerate investments in poverty eradication and reduce income inequality. These contributions are aligned with specific SDGs and show that FinTech is an appropriate new technology for financial services.

Determinants of Income Inequality in Indonesia

Indonesia's elevation to an upper-middle-income country in 2019 still leaves unresolved issues of income inequality. While the Indonesian government has implemented several policies to address this, the spatial aspects have not been adequately considered. This study utilizes panel data from 34 provinces in Indonesia over the period 2018-2020 to identify the determinants of income inequality and examine the presence of regional spatial connections influencing income inequality. The findings reveal that per capita income and foreign direct investment have a negative relationship with income inequality, whereas exports and imports have a positive relationship. Additionally, there is no evidence of spatial linkages between regions affecting income inequality. These insights suggest that policies aimed at reducing income inequality should focus more on economic factors rather than spatial considerations.

The Role of Financial Development in Reducing Income Inequality in Selected Asian Countries

The present study investigated the effects of financial development on income inequality for three income level groups across 12 Asian countries (areas) from 1980-2020. The three groups comprised countries with low, moderate, and high economic development. Using the Quantile-on-Quantile (QQ) approach, The findings showed that the impact of financial development on income inequality differed across the income level groups of the 12 selected Asian countries. The results suggested that financial development exacerbated income inequality in underdeveloped countries, while for moderately developed countries, financial development promoted income equality. Except for South Korea, the other countries in the high economic development group showed that financial development exacerbated income inequality. Therefore, the impact of financial development on income should be examined by groups, in which moderately-developed countries could devote more attention to promoting income equality through reforms focusing on the development of financial diversification and the enhancement of financial depth.

Income Diversification of Rural Households in Bangladesh (2022-23)

This study examines income diversification and inequality among rural households in Bangladesh in 2022- 23, focusing on agricultural and non-agricultural sources of income. The analysis includes three districts: Chadpur, Sirajganj and Rajshahi, with specific economic activities. Data were collected through household surveys that collect income from agriculture, livestock, fishing, services and industries, and demographic data. Rajshahi has the highest income, due to high income from cattle, while Chadpur has the lowest. The results show significant income disparities, high levels of animal activity and differences in economic activity between regions. Larger houses in Rajshahi reflect changes in family structure. The main challenges identified were land fragmentation, climate change and limited access to finance and infrastructure. Recommendations for policy interventions include targeting support to low-income areas, investing in livestock development, promoting income diversification, improving infrastructure, strengthening climate livelihoods, expanding access to finance, the adoption of technology and the implementation of family planning programs. These strategies aim to reduce income inequality, improve economic opportunities and promote sustainable development in rural Bangladesh.

Dynamics of innovation and income inequality mediated by human capital and financial development: a panel data study of Asia-Pacific countries

ABSTRACT Income inequality is one of the most important among the grand challenges faced by the global economy. The hyper-globalization phase and rising digital innovations have accentuated income inequalities within countries. Asia-Pacific countries have shown a continuous rise of income inequalities and surge of innovations. This study attempts to examine the relationship between income inequality and innovation mediated by human development and financialization. For unravelling the dynamics of income inequality, impact of innovation, human capital and financial development of 15 Asia-Pacific countries covering the period 1990–2022 are examined. It employs panel cointegration econometric models for empirical estimation. Findings revealed that innovation has a significant adverse impact on income distribution. Human capital as a mediating variable of innovations has reduced income inequalities, whereas financial development widens income inequalities. Important finding of the study is that the income dis-equalizing effect of financial development outweighs the income equalizing effect of human capital in the presence of improved technological innovations. Public policy lesson emerged from this study is that the policymakers should enact those policies that foster technological innovations with expansion of human development, inclusive financial development, institutional quality and enhancement of macroeconomic stability that can ensure reduction of income inequality.