Trends In Income Inequality Research Articles

Inequality of rural residents’ income in China since the targeted poverty alleviation strategy: New trends, causes, and policy implications

Poverty and income inequality are problems faced by many countries including China. Since the implementation of Targeted Poverty Alleviation (TPA), absolute poverty has been eradicated, meanwhile, Chinese rural residents' income and inequality have experienced unprecedented new dynamics, but still, very few studies have focused on them. Hence, we attempt to examine the new trends in Chinese farmers' income inequality and to understand its causes during this period. We observe that China's urban-rural income ratio has been shrinking and the urban-rural inequality has been decreasing from 2014 to 2021. The reduction in the Theil index indicates a decrease in the regional inequality of farmers' income as well, and the decline in inter-regional inequality among eight economic zones contributes about 80% to increased equality. These new trends are caused by the fact that, with the TPA, the incomes of rural residents especially that in destitute areas, grew faster than that of urban residents and farmers in prosperous areas. The higher share of non-agricultural industry and agricultural mechanization level have significant positive impact on regional equality of farmers' income, while urban-rural dual structure has significant negative inhibitory effects. The lowest farmers' income and the highest inequality in the Northwest, and the slowest growth in the Northeast deserve more attention in rural Revitalization. From these findings, we propose four policy implications that would be applied to improve Chinese farmers' income equality, govern relative poverty, and achieve common prosperity in the post-poverty era.

What contributes to rising inequality in large cities?

AbstractThis paper aims to analyze the trends in income inequality in large cities within a selected sample of OECD countries. Specifically, we consider a set of individual characteristics that account for changes in the income distribution and estimate their contribution to differences in inequality in large cities over the last two decades. We use a combination of reweighting techniques and recentered influence functions (RIF) to detect an upward trend in inequality within large cities. This result is mainly driven by changes in the returns to endowments rather than by changes in its distribution. Our findings suggest that these results are not of the same magnitude across the countries analyzed. A key finding is that the contribution to inequality of the skill premium is considerably higher in North American countries than in European countries.

Declining research productivity and income inequality: A centenary perspective

Research productivity has been sharply declining since 1920. This decline has significant implications for inequality. Using an open-economy Schumpeterian growth model, we show that domestic research productivity influences income inequality through two opposing forces: a positive effect from increased asset returns and a negative effect from the erosion of innovation rents through creative destruction. In contrast, foreign research productivity affects inequality solely through the asset returns channel. By constructing a long historical data series for 21 OECD countries, we find that the asset returns channel has been the dominant driver of inequality over the past century. The reduction in both domestic and foreign R&D productivity accounts for 25% to 35% of the observed downward trend in income inequality over this period.

Income and consumption inequality trends: a comparative analysis between paid employees and the self-employed

This paper aims to analyze trends in income and consumption inequality for paid and self-employed households and examine to what extent changes in aggregate consumption and income inequality can be explained by changes in their permanent and transitory components over time using data from the Italian Survey of Household Wealth (SHIW) covering the period 1989-2016. The results obtained from the Generalized Method of Moments (GMM) analysis reveal differences in consumption and income inequality, as well as their permanent and transitory components, between self-employed and payroll households. In particular, self-employed households experience higher levels of both income and consumption inequality, the increase in total income and consumption inequality is mainly driven by an increase in its transitory component. Furthermore, findings from other descriptive measures of inequality, such as the Gini coefficient, the variance of the log, 90th/10th, and 50th/10th percentile ratios, support the notion that income inequality is higher than consumption inequality across all groups, with self-employed households exhibiting a more pronounced difference.

Trends in income and wealth inequalities

Abstract This article brings together trends in inequalities in income, wealth and, to a limited extent, consumption in the United Kingdom, with a focus on trends until the onset of the COVID-19 pandemic. It considers how trends in wealth compare with the much better known trends in income inequality and the extent to which changes to the shape of the income distribution—especially at the top—are hidden by an unchanging Gini coefficient. And it explores the key differences between groups in society and especially between those in different birth cohorts.

A Systematic Literature Review of Income Inequality in Central–Eastern European Countries

AbstractThis review offers a comprehensive perspective on income inequality literature in Central–Eastern European (CEE) nations, with a specific focus on six countries: Bulgaria, Romania, Poland, Hungary, Czechia, and Slovakia. By thoroughly examining existing research, this review uncovers the underlying factors and root causes contributing to varying income inequality levels and trends across CEE countries. The investigation is conducted through a systematic literature review and network analysis, focusing on the literature published since 1990, mainly on recent studies. The review is structured around three thematic frameworks (concept and measures, evidence, and causes). These three strands of the literature review not only offer a comprehensive picture of income inequality in CEE countries but also identify critical research gaps for further studies. The review underscores several critical areas for improvement within CEE studies. These include addressing gaps in geographical and temporal coverage, utilizing alternative measurements of income inequality, and investigating the causes of diverging trends in income inequality among CEE countries. Moreover, there is a pressing need to expand the understanding of the determinants influencing income inequality in these nations, which presents a significant opportunity for future research.

The role of energy efficiency in income inequality dynamics in developing Asia: Evidence from artificial neural networks

This study investigates the drivers of income inequality trends in seven developing Asian countries between 1990 and 2022, exploring the effects of energy efficiency, government spending, economic growth, globalization, and human development. The study investigates how these variables affect income inequality using various statistical methods, including long-run machine learning and prediction models. The findings indicate a negative impact of energy efficiency on income inequality, highlighting the potential of energy-saving measures in narrowing the income gaps between the rich and poor. Government spending, economic growth, globalization, and human development are also crucial in alleviating income inequality in developing Asian countries. This study underscores the importance of tailored policies, advocating for investments in energy efficiency, targeted government spending, larger economic integration, and inclusive growth strategies to address income inequality in developing Asia.

On the side effects of fiscal policy: Fiscal rules and income inequality

Contributing to an important literature on the side effects of fiscal policy, this paper employs a treatment effect analysis to show that fiscal rules (FR) have significant side effects on income inequality (IQ). Economically meaningful, this favorable causal direct effect is robust to many alternative specifications. Nevertheless, not all FR are alike: balanced budget and debt rules decrease IQ, contrary to expenditure rules that increase it. Finally, the effect of FR on IQ is found to be subject to heterogeneity related to various factors. Given the current upward global IQ trends, our results provide insightful evidence for governments of countries aiming at reducing IQ.

The causes of income inequality in urban China: A household assets perspective

Despite income inequality in China being a heated topic in scholarship and public discussion, little research has explored the trend in income inequality since the mid-2010s or focused on the implications of household assets on income inequality. Using pooled cross-sectional data from the Chinese General Social Survey, we estimate income inequality at the household level from 2012 to 2021 and further examine the effects of two types of household assets (housing assets (HA) and financial assets (FA)) on income inequality in urban China, as well as the moderating effects of socioeconomic status (SES) and regional marketization. The results indicate that national income inequality was sustained at a high level between 2012 and 2021, while income inequality in urban households was higher than that in rural households. Both HA and FA were positively related to income inequality, and the latter assets had a stronger effect on income inequality. The association between the two types of household assets and income inequality strengthened along with an increase in family SES and regional marketization levels. The study highlights that FA, relative to HA, are a more important contributor to income inequality among urban households, thus extending the literature on inequality and social stratification in contemporary China by revealing the causes underlying rising income inequality from the household assets perspective.

Impact of Covid-19 on Income Inequality; a Comparative Analysis for China and Italy

This study examines the impact of covid 19 on income inequality and comparison between China and Italy. Trends in Gini coefficient showed differentiated results for two countries. In this comparison various indicators came to consideration that affected inequality. For empirical investigation from the past data collected from World Development Indicators and Generalized methods of moments (GMM) for panel data analysis. Results indicated that poverty and unemployment have significant positive impact on income inequality while rate of taxes shown negative and significant impact on income inequality. These results supported many other studies but the post covid trend in Gini coefficient shows contradictory results. Rising trend in income inequality in China and falling trend in Italy drives the attention in mitigation policies. China preferred to save its population from corona virus and implemented strict stay at home and isolation policy. In this regard inequality showed rising trend. Whereas Italian government along with isolation and stay at home policies financed poor much and paid less attention to rich. In this way the gap between rich and poor came down. This study pays attention to the country-based policies reflecting government preferences and initiatives taken for betterment.

Trends in socioeconomic inequalities in breast cancer mortality in Canada: 1992-2019.

Breast cancer is the second leading cause of death from cancer among Canadian females. This study aimed to quantify and assess trends in education and income inequalities in the mortality rate of breast cancer in Canada from 1992 to 2019. We constructed a census division-level dataset pooled from the Canadian Vital Death Statistics Database (CVSD), the Canadian Census of the Population (CCP), and the National Household Survey (NHS) to examine trends in education and income inequalities in the mortality rate of breast cancer in Canada over the study period. The age-standardized Concentration index (C) was used to quantify income and education inequalities in breast cancer mortality over time. The national crude mortality rate of breast cancer has decreased in Canada from 1992 to 2019, with Alberta, British Columbia, Manitoba, Ontario, Prince Edward Island, and Quebec having the greatest decreases in mortality rate. The age-standardized C for education and income inequalities were always negative for all the study years, meaning that the mortality rate of breast cancer was higher among less-educated and poorer females. Moreover, the results indicate a growing trend in the concentration of breast cancer mortality among females with lower income and education from 1992 to 2019. The increasing concentration of breast cancer mortality among low socioeconomic status females remains a challenge in Canada. Continuous efforts are needed within Canadian healthcare systemto improve the prevention and treatment of breast cancer for this population.

Analytical utility of periodizing capitalist history: Neoliberalism, social welfare spending, and income inequality in the United States

This article critiques policies aimed at income redistribution within the framework of Marx’s critique of political economy. The ‘Neoliberal’ characterization of capitalist history, the tendency to divide capitalism into distinct sub-periods or phases, continues to play a significant role for describing changes to social policy in the United States. Prominent academics and public intellectuals continue to hold spirited debates over whether or not welfare spending in the United States has become less generous over the years, owing to increasing ‘neoliberalization’ of the American economy. This mixed-methods research paper analyzes trends in social welfare spending and income inequality for the United States. To supplement the analysis, a novel dataset on Distributional National Accounts from the Bureau of Economic Analysis is also analyzed. Evidence suggests previous concerns in the literature are unfounded and are not borne out by empirical evidence.

Inequality in history: A long‐run view

AbstractThis article provides an overview of long‐term trends in income and wealth inequality, from ca. 1300 until today. It discusses recent acquisitions in terms of inequality measurement, building upon earlier research and systematically connecting preindustrial, industrial, and post‐industrial tendencies. It shows that in the last seven centuries or so, inequality of both income and wealth has tended to grow continuously, with two exceptions: the century or so following the Black Death pandemic of 1347–52, and the period from the beginning of World War I until the mid‐1970s. It discusses recent encompassing hypotheses about the factors leading to long‐run inequality change, highlighting their relative merits and faults, and arguing for the need to pay close attention to the historical context.

Income Inequality Trends in Central Uttar Pradesh Districts, India

Nearly six decades following independence, some parts of Uttar Pradesh remain extremely backward and are home to the majority of the nation's impoverished. The state has long suffered from regional inequities and inequality. Intraregional differences provide huge issues because of their compounding effects on governance and living circumstances. The Paper aims to study the growth performance and the convergence/divergence in growth among districts from 2011–12 to 2017–18 in Central Uttar Pradesh. Uttar Pradesh is divided into four regions: Western region, Central region, Bundelkhand region and Eastern region. The central region had been chosen for study through Cluster sampling technique. We used two Convergence measures: Beta convergence, which relies on neoclassical growth theory, and Sigma convergence, which uses the coefficient of variation to measure the spread of per capita net income. We found a negative relationship between the two variables in estimating a regression equation linking growth to the PCNI's initial per capita income log. Growth and starting per capita net income had a statistically insignificant negative association the whole time. The levels of PCNI (Per capita Net Income) depicts inter-district disparity decline as shown by the decreasing coefficient of variation. The study offers a policy suggestion that a comprehensive policy strategy that takes into account economic, social and infrastructural element is necessary.

The Rise in Economic Inequality in India in Recent Years

India's economy is among the fastest expanding in the world, yet it also ranks among the most unequal. Throughout the past thirty years, inequality has been steadily increasing in the country. A significant portion of the wealth generated by crony capitalism and inheritance has been monopolized by the wealthiest. Their rate of wealth accumulation is significantly exceeded that of the impoverished, who struggle to make ends meet and obtain adequate healthcare and education. In the paper we try to scrutinize the trends in income and wealth inequality in India and also examine the impact of Covid-19 pandemic on economic inequality in the nation. Some policy suggestions are made as India navigates the road to recovery to alleviate the gaps posed by the extraordinary difficulties presented by COVID-19 and promote a more resilient and equitable economic environment in post-pandemic India.

Rent–wage inequality in Mexico City, 1770–1930

AbstractThis article traces trends of income inequality in Mexico City from 1770 to 1930 by measuring the gaps between urban real estate rents and unskilled wages. The article presents the first long‐term series of real estate values and rental income for Mexico. One series summarizes the price of an apartment in tenement housing (the prevalent type of popular housing in Mexico), while the other relies on newspaper ads, notarial records, and other sources to estimate property values and rental yield (rental revenue relative to property values). From these wage and rental income series, we calculate rental–wage ratios that are broadly representative of the income gaps between the wealthy and unskilled workers. We find that, at the end of the eighteenth century, inequality moderately increased, followed by a more egalitarian period in the first half of the nineteenth century, and a ballooning in the last quarter of the nineteenth century that persisted into 1930. While inequality receded after the insurrection in the 1810s, it remained high after the Mexican Revolution. We hypothesize that inequality was sensitive to economic growth, and that generalized violence did not universally temper inequality.

비동거 가구원 보정이 소득불평등지표 변화에 미치는 영향에 관한 연구

Since 2017, income inequality in South Korea has been measured using the Survey of Household Finances and Living Conditions. This survey combines income information gathered through surveys with highly reliable administrative data which include tax data from the National Tax Service and health insurance payment data from the National Health Insurance Service. Based on the Survey of Household Finances and Living Conditions, income inequality in South Korea has steadily decreased from 2017 to 2019. However, there are some who contend that income distribution has actually become more unequal during this same period. In light of these differing viewpoints, the purpose of this study is to examine whether the measure of income inequality derived from the Survey of Household Finances and Living Conditions accurately portrays the current income inequality situation in South Korea. The technical reports indicate that the survey considers a family of origin to include one-person households who move out for work or study. The issue here is that a relatively high percentage of these one-person households, especially young single adults, tend to have lower incomes and poorer living conditions. Therefore, this study aims to examine how the separation of these young one-person household members who live independently for work or study from their original households impacts the trends in income inequality from 2017 to 2019 as reported in the Survey of Household Finances and Living Conditions. The results reveal that when adjustments are made for one-person households, there are discernible differences in income inequality indices such as the Income quintile share ratio, Gini coefficient, and Palma ratio between the adjusted data and the original data. Further analysis of income inequality trends by age groups suggests that, after adjusting for non-cohabiting household members, the worsening income inequality among young adults in their twenties contributes to the differences observed in income inequality trends from 2017 to 2019 between the original data and the adjusted data.

Socioeconomic inequality in organized and opportunistic screening for colorectal cancer: results from the Korean National Cancer Screening Survey, 2009-2021.

This study aimed to investigate socioeconomic status (SES)-based inequality in colorectal cancer (CRC) screening in Korea. We assessed whether the rates of opportunistic and organized CRC screening differed according to income and education levels. We analyzed data from the Korean National Cancer Screening Survey of 27,654 cancer-free individuals, aged 50-74 years, from 2009 to 2021. The weighted cancer screening rates with trends were estimated with the average annual percentage change using joinpoint regression. Inequality was calculated in both relative and absolute terms, based on a Poisson regression model. The organized screening rate increased significantly from 22.1% in 2009 to 53.1% in 2020 and 50.6% in 2021, with an average annual change of 8.6% (95% confidence interval [CI], 4.9 to 12.5). In contrast, no significant trend was observed for opportunistic screening. The SES inequality in opportunistic screening uptake was indicated by a slope index of inequality (SII) of 9.74% (95% CI, 6.36 to 13.12), relative index of inequality (RII) of 2.18 (95% CI, 1.75 to 2.70) in terms of education level; and an SII of 7.03% (95% CI, 4.09 to 9.98), RII of 1.81 (95% CI, 1.41 to 2.31) in terms of measured income. Although there was an increasing trend in income inequality, no significant SES inequalities were observed in the overall estimates for organized screening. Organized CRC screening is effective in improving the participation rate, regardless of SES. However, significant inequalities were found in opportunistic screening, suggesting room for improvement in the overall equity of CRC screening.

Trends in Income and Expenditure Inequality in the 1980s and 1990s: A Re-Examination and Further Results

Trends in Income and Expenditure Inequality in the 1980s and 1990s: A Re-Examination and Further Results

Inequality and Capabilities in an Era of Rising Instability

ABSTRACT This paper reviews the trends in income inequality over the last 40 years, and proposes a new explanation for their evolution – that it is hoped will be tested empirically by many studies in the years ahead – to see whether the observed increases in inequality of the last four decades have been caused by an aggravation of its traditional causes (such as land an human capital concentration), or by a widespread increase in instability in five key areas affecting inequality, the Human Development Index and human capabilities. The five areas where a sharp increase in instability has been observed concern: (a) the financial sector; (b) industry 4.0, especially the development of robotics and artificial intelligence; (c) diseases such as ebola, aids and covid; (d) number of conflicts and (e) a growing environmental crisis. A key unanswered question in the above proposed overall explanation is whether these five crises are interconnected and whether there is a primum movens that explains this series of problematic events.