Wealth Inequality Research Articles

Harmonising Contributions: Exploring Diversity in Software Engineering through CQA Mining on Stack Overflow

The need for collective intelligence in technology means that online Q&A platforms, such as Stack Overflow and Reddit, have become invaluable in building the global knowledge ecosystem. Despite literature demonstrating a prevalence of inclusion and contribution disparities in online communities, studies investigating the underlying reasons behind such fluctuations remain scarce. The current study examines Stack Overflow users’ contribution profiles, both in isolation and relative to various diversity metrics, including GDP and access to electricity. This study also examines whether such profiles propagate to the city and state levels, supplemented by granular data such as per capita income and education, before validating quantitative findings using content analysis. We selected 143 countries and compared the profiles of their respective users to assess implicit diversity-related complications that impact how users contribute. Results show that countries with high GDP, prominent R&D presence, less wealth inequality, and sufficient access to infrastructure tend to have more users, regardless of their development status. Similarly, cities and states where technology is more prevalent (e.g., San Francisco and New York) have more users who tend to contribute more often. Qualitative analysis reveals distinct communication styles based on users’ locations. Urban users exhibited assertive, solution-oriented behaviour, actively sharing information. Conversely, rural users engaged through inquiries and discussions, incorporating personal anecdotes, gratitude, and conciliatory language. Findings from this study may benefit scholars and practitioners, allowing them to develop sustainable mechanisms to bridge the inclusion and diversity gaps.

Wealth and education-related inequalities in the utilisation of reproductive, maternal, newborn, and child health interventions within scheduled tribes in India: an analysis of Odisha and Jharkhand

BackgroundThe utilisation of Reproductive, Maternal, Newborn and Child Health (RMNCH) services remains lower among the Scheduled Tribes (ST) in India than among the rest of the country’s population. The tribal population’s poorest and least-educated households are further denied access to RMNCH care due to the intersection of their social status, wealth, and education levels. The study analyses the wealth- and education-related inequalities in the utilisation of RMNCH services within the ST population in Odisha and Jharkhand.MethodologyWe have constructed two summary measures, namely, the Co-coverage indicator and a modified Composite Coverage Index (CC), to determine wealth- and education-related inequalities in the utilisation of RMNCH indicators within the ST population in Odisha and Jharkhand. The absolute and relative inequalities with respect to wealth and education within the ST population are estimated by employing the Slope Index of Inequality (SII) and the Relative Index of Inequality (RII).ResultsThe results of the study highlight that access to RMNCH services is easier for women who are better educated and belong to wealthier households. The SII and RII values in the co-coverage indicator and modified CCI exhibit an increase in wealth-related inequalities in Odisha between NFHS-4 (2015-16) and NFHS-5 (2019-21) whereas in Jharkhand, the wealth- and education-related absolute and relative inequalities present a reduction between 2016 and 2021. Among the indicators, utilisation of vaccination was high, while the uptake of Antenatal Care Centre Visits and Vitamin A supplementation should be improved.InterpretationThe study results underscore the urgent need of targeted policies and interventions to address the inequalities in accessing RMNCH services among ST communities. A multi-dimensional approach that considers the socioeconomic, cultural and geographical factors affecting healthcare should be adopted while formulating health policies to reduce inequalities in access to healthcare.

В защиту ролзианского эгалитаризма (Критика Р.Бельковича и С.Виноградова)

The liberal-egalitarian concept formulated by John Rawls in his book A Theory of Justice is still vehemently debated today. Critics of this concept include, among others, Rodion Belkovich and Sergei Vinogradov, according to whom Rawlsians inevitably face a dilemma: they need to reject either the difference principle or luck egalitarianism, and each of these solutions leads to the erosion of the basic foundations of Rawls’s theory. The article presents a detailed analysis of the arguments put forward by Belkovich and Vinogradov and demonstrates that the dilemma they identified is flawed for three reasons. First, it blurs the distinction between luck egalitarianism and “straight egalitarianism,” which assumes the complete equality of income and wealth in society. Luck egalitarians do not support the idea of absolute equality in distribution and consider inequality that reflects people’s responsibility for their own choices fair. Second, Rawlsian egalitarianism is essentially equated with luck egalitarianism, while they represent two clearly distinguishable approaches. Third, the kidnapper’s argument, which proves that the difference principle is incompatible with luck egalitarianism, does not provide solid reasoning against the difference principle. The argument is only applicable under limited conditions, when the difference principle is embedded as an assumption in the “argument from incentives”, which in turn is put forward by the potential beneficiaries of this incentive. According to the author’s conclusion, the above mentioned considerations clearly indicate that Rawlsians do not face any dilemma of choosing between luck egalitarianism and the difference principle, and the criticism of Rawls’s theory proposed by Belkovich and Vinogradov should be considered groundless.

Using Rich Lists to Study the Super-Rich and Top Wealth Inequality: Insights from Switzerland

Abstract We present a new data set we built based on Swiss rich lists going back to 1989. We show, among other things, that 60% of the super-rich are heirs—a fraction twice as large as in the US—and that wealth mobility at the very top has declined significantly. We find that top 0.01% wealth shares are higher than previous estimates based on wealth tax statistics suggest. At the same time, we argue that rich list data lead to overestimating wealth inequality. While rich lists are valuable to study the super-rich, we recommend to use reported wealth figures with caution.

Risks to Human Capital

We build a model with inalienable human capital, in which investors finance individuals who can potentially become skilled. Although investment in skill is always optimal, it does not take place in some states of the world, due to moral hazard. In intermediate states of the world, individuals acquire skill; however outside investors and individuals inefficiently share risk. We show that this simple moral hazard problem, combined with risk aversion of individuals and outside investors, amplifies the equity premium, lowers the risk-free rate, and leads to disaster states that fall especially heavily on some agents but not on others. We show that the possibility of disaster states distorts risk prices and affects wealth inequality, even under calibrations in which they never occur in equilibrium. This paper was accepted by Lukas Schmid, finance. Funding: M. Ebrahimian acknowledges funding from the Swedish House of Finance. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.03068 .

Does inequality impede risk management? Evidence from a lab experiment in Ghana

AbstractLow income households in agrarian developing economies face considerable livelihood risks, which have negative impacts on welfare. A growing literature focuses on internal constraints on development, which can negatively affect saving and investment behavior. Here I propose that internal constraints may also hinder risk management. Specifically, I present a theoretical model that explores how fairness preferences may create an internal constraint on risk sharing, particularly in a context of wealth inequality, and thereby also affect demand for formal insurance. To test this theory, I utilize a lab experiment, conducted in Ghana, to investigate the impact of wealth inequality on utilization of risk‐management tools, interpersonal risk sharing and formal insurance, and explore how fairness preferences may mediate this effect. I find that inequality reduces risk sharing and increases demand for insurance. Moreover, I find suggestive evidence that fairness preferences create an internal constraint on risk sharing under inequality.

Assessing the Influence of Redlining on Intergenerational Wealth and Body Mass Index Through a Quasi-experimental Framework.

Higher levels of body mass index (BMI), particularly for those who have obesity defined as class II and III, are correlated with excess risk of all-cause mortality in the USA, and these risks disproportionately affects marginalized communities impacted by systemic racism. Redlining, a form of structural racism, is a practice by which federal agencies and banks disincentivized mortgage investments in predominantly racialized minority neighborhoods, contributing to residential segregation. The extent to which redlining contributes to current-day wealth and health inequities, including obesity, through wealth pathways or limited access to health-promoting resources, remains unclear. Our quasi-experimental study aimed to investigate the generational impacts of redlining on wealth and body mass index (BMI) outcomes. We leveraged the Panel Study of Income Dynamics (PSID) and Home Owners' Loan Corporation (HOLC) maps to implement a geographical regression discontinuity design, where treatment assignment is randomly based on the boundary location of PSID grandparents in yellowlined vs. redlined areas and used outcome measures of wealth and mean BMI of grandchildren. To estimate our effects, we used a continuity-based approach and applied data-driven procedures to identify the most appropriate bandwidths for a valid estimation and inference. In our fully adjusted model, grandchildren with grandparents living in redlined areas had lower average household wealth (β = - $35,419; 95% CIrbc - $37,423, - $7615) and a notably elevated mean BMI (β = 7.47; 95% CIrbc - 4.00, 16.60), when compared to grandchildren whose grandparents resided in yellowlined regions. Our research supports the idea that redlining, a historical policy rooted in structural racism, is a key factor contributing to disparities in wealth accumulation and, conceivably, body mass index across racial groups.

Emission inequality: Comparing the roles of income and wealth in Belgium and the United Kingdom

Many studies have investigated the distribution of greenhouse gas emissions associated with household consumption, highlighting that richer households have a substantially larger carbon footprint than poorer households. While these studies have typically used income or household expenditures as a proxy of households’ living standards, the association between emissions and wealth has hardly been studied. Wealth is not just an important component of households’ material living standards, known to be imperfectly correlated with income and expenditures, but it is also a very relevant dimension for climate policies. For instance, affluent households have more scope to invest in reducing emissions (e.g. insulation of their homes). Therefore, in this paper, we compare the inequality of emissions over wealth groups as well as groups defined by other living standard concepts such as income, expenditure and the joint distribution of income and wealth to add a focus on wealth to the analysis of emission inequality. Our study focuses on Belgium and the United Kingdom, which differ considerably in their level of wealth inequality. Our results highlight that the social distribution of emissions varies between expenditures, income, wealth and the joint distribution of income and wealth, with per capita emissions being more strongly associated with the joint distribution of income and wealth than with income alone. We also show that a significant share of households has both low income and low wealth, and may thus be lacking the means to prepare for a carbon-neutral future. Although increasing wealth taxation could provide much-needed revenues for low carbon investments, our results suggest that it would have a lower direct impact on the level of emissions and emission inequality compared to increasing taxes on high incomes.

Income mobility and crime: a hierarchical cluster analysis on principal components for 27 OECD countries

PurposeThe aim of this paper is to investigate the linkages between intergenerational income mobility and crime for 27 OECD countries, considering different types of crime, family ties, enforcement, in terms of punishment rate and perceived quality of the legal system, redistributive outcomes and government expenditure.Design/methodology/approachUsing the Global Database of Intergenerational Mobility (GDIM), the empirical analysis is conducted by coupling the principal components analysis with the hierarchical clustering. The variance tests verify the robustness of the clusters.FindingsIncome mobility is higher in those countries where there is high public investment devoted to education and high perception of rule of law to buffer the adverse effects of crime on income mobility. The redistributive policies must be oriented to better the wealth distribution and not only income equality opportunity to decrease crime and to increase income mobility. A plausible existence of “hidden” income mobility emerges from the linkages between income mobility and frauds.Social implicationsMore redistributive policies for education, income and wealth equality should be applied in those countries with low income mobility and high violent crime rates; higher punishment rates should be applied to reduce the rates of thefts and frauds in high income mobility countries.Originality/valueThe main contribution is the identification of what type of crime leads to downward income mobility, as well as the role of perceived quality of the legal system, government and family ties in the association between income mobility and crime, suggesting also the potential existence of “hidden” income mobility.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2023-0520

The macroeconomic effects of universal basic income programs

I develop a heterogeneous agents overlapping generations model to assess the welfare effects of substituting the US income security system with a UBI policy. I study two counterfactual exercises: an expenditure-neutral reform and a large, policy-oriented UBI reform with a transfer equivalent to $1000 monthly, both financed by changes in the consumption tax. The first exercise has a moderate fiscal impact, induces increases in the aggregate output and employment, and reduces earnings and wealth inequality. The second exercise requires a large increase in the consumption tax rate, decreases employment and output, and increases earnings inequality, which moves sideways for wealth. In both cases, disposable income and consumption are more equally distributed, with less accrual at the top. The two economies generate positive welfare gains, with those for the generous UBI economy being larger.

How did COVID affect savings and wealth? An empirical study in South Africa

By using a unique dataset of more than 20,000 individuals with savings accounts from August 2019 to October 2020 in South Africa, this paper examines how the COVID crisis has affected savings behavior, and by affecting savings, impacted wealth inequality. We find that while COVID increased savings on average, the increase in average savings is due to a small group of higher income savers which substantially increased their savings, while a large group stopped saving.

The gender (tax) gap in parental transfers. Evidence from administrative inheritance and gift tax data

Abstract This study examines how inheritance and gift taxation, in combination with gendered parental transfer behavior, exacerbate gender wealth inequalities. Tax systems can help reproduce gender differences if men and women benefit differently from tax exemptions. This might happen when men and women receive different types of assets, only some of which are tax exempt. To investigate gendered parental transfer behavior and gendered tax rates, we draw on German administrative data on inheritance and gift taxation. Women are less likely than men to receive parental transfers, the value of such transfers tend to be lower, and women tend to receive different types of asset. Moreover, we identify a gender tax gap of 2% for inheritances and 22% for gifts. Our analyses suggest that men benefit more from tax exemptions on business assets. This study adds the tax system as another factor implicated in the reproduction of gender wealth inequalities.

Social security, bequests, and social comparisons

AbstractWe examine the long‐run impact of unfunded social security on capital stock and wealth inequality in an overlapping generations (OLG) model where newborn individuals differ in their inheritance. In our model, individuals' decisions are subject to social comparisons, which can lead to overspending on personal consumption and result in zero bequests left within poor families. In this scenario, unfunded social security increases long‐run wealth inequality by redistributing wealth from poor to rich families, who always leave bequests. However, it increases long‐run capital stock, too. We also show that when none or all of the families leave bequests in the long run, our model predicts negative and neutral effects of social security on capital accumulation, in line with the standard OLG models of Diamond and Barro. Thus, our results emphasize the need to account for heterogeneity in bequest behavior in the analysis of social security.

Hijacking freedom: Ron DeSantis and the scourge of fascist politics

This article examines how the concept of freedom has been appropriated by the far right to impose a number of authoritarian policies designed to dismantle the critical functions of public and higher education. It explores, in particular, the ways in which Florida Republican Governor Ron DeSantis has used an appeal to freedom to punish critics, wage a war on trans people, misrepresent the history of slavery, and impose a new version of McCarthyism on higher education. It challenges what it terms neoliberal and fascist notions of freedom by making clear that democracy and capitalism are incompatible, and that any viable notion of freedom must address not only personal and political rights but also economic rights. Freedom from domination must be matched by a freedom to live in a world marked by the principles of justice, equality, and dignity. There is no freedom in the midst of massive inequalities in wealth, power, and education.

Stuck in an Unequal Society: Wealth Inequality and Pessimistic Prospects on Future Social Mobility in South Korea

Abstract Why do some people express optimism about their future social mobility, while others have a pessimistic view? This paper examines whether and how local wealth inequality is associated with individuals’ pessimistic or optimistic expectations of their future social mobility in South Korea. It argues that people in districts with greater economic inequality will have more pessimistic views of their future upward mobility, as high local inequality raises concerns among the public that their opportunities to move up the social ladder may be receding. Using economic inequality at the local level calculated using actual real estate transaction prices in South Korea from 2011 to 2018, the empirical results confirm the negative association between local inequality and individuals’ assessments of their future social mobility, particularly among residents in less affluent districts, those with low incomes, and those with a subjective awareness of belonging to a lower social class.

Inequalities: The Economic Foundation

Inequality takes many forms, but it starts with inequality of wealth and incomes. From that flows inequality is social mobility, life expectancy, educational attainment and even happiness. And the inequality of wealth and income is very extreme – both withing countries and between rich and poor countries. The gaps are hardly narrowing, if at all. Behind extreme inequality is the concentration of the bulk of wealth in the form of the ownership of productive capital in just a few adults in the world – no more 1% of 8bn people. That concentration has arisen because of the economic structure of the capitalist mode of production as it has spread across the world in the last century. While that basic structure remains in place, redistribution policies for income and wealth will be inadequate. A fundamental change in the social and economic formation of modern economies is required.

Public Attitudes and Sentiments toward Common Prosperity in China: A Text Mining Analysis Based on Social Media

Since 2021, China’s promotion of common prosperity has captured global attention and sparked considerable debate. Yet, scholarly examination of the Chinese public’s attitudes toward this policy, which is crucial for guiding China’s strategic directions, remains limited. To address this gap, this paper collects 256,233 Sina Weibo posts from 2021 to 2023 and utilizes text mining methods such as temporal and trend analysis, keyword analysis, topic analysis, and sentiment analysis to investigate the attitudes and emotions of the Chinese people towards common prosperity. The posts holding negative sentiments are also analyzed, so as to uncover the underlying reasons for the dissatisfaction among Chinese citizens regarding common prosperity. Our analysis reveals that China’s strategy for promoting common prosperity is primarily focused on economic development rather than wealth redistribution. Emphasis is placed on enhancing education, achieving regional balance, implementing market-oriented reforms, and improving livelihoods. Notably, there is increasing public dissatisfaction, particularly with issues such as irregularities in financial and real estate markets, growing wealth inequality, exploitation by capital, generation of illicit income, and regional development imbalances. These challenges necessitate urgent and effective policy interventions.

Business Equity and Wealth Inequality in Central and Eastern Europe

AbstractThis paper analyzes the contribution of business equity, housing wealth and the rest of net wealth, to wealth inequality in eight post-socialist countries. Using the third wave of Household Finance and Consumption Survey, we decompose wealth inequality by factor components and use bootstrapping to provide statistical inference. We find that business equity, accounting for over 50% of within-country inequality in most cases, significantly surpasses the contribution of housing wealth. We extend our analysis through a novel simulation approach, employing counterfactual scenarios, to assess variations in between-country inequality. We find that the greatest reduction in the wealth inequality between these countries would occur if business equity were distributed more equally.

The Correlation Between Education and Income Inequality

This paper analyzes the dynamics of wealth and education inequality in the world. This topic is very useful for the current economic situation. Meanwhile, the economic circle has different views on this issue by searching different literature. Each paper comes up with a different result and a different conclusion based on a different way of calculating economic inequality, and most scholars are divided into two groups, those who think they are strongly related and those who think they are not deeply related. These papers use some special calculations to calculate economic inequality. After analyzing the experimental process and results, it was found this issue and came up with personal views. In opinion, education does have a great impact on the economic situation of the middle class, but for the richest group of people, education has little impact on them. However, this research result still has some defects, so researchers need to consult more pieces of literature and obtain more data to obtain a more accurate result, which would greatly improve the level of economic inequality and extreme poverty in the world.

Left behind: Partisan identity, stock market participation, and wealth inequality

This paper investigates whether and how opposing partisans differ in their wealth accumulation. Using microdata from a longitudinal U.S. household survey, I document that Democrats are on average 11% less likely than Republicans to participate in the stock market. Moreover, the partisan gap widens sharply, by 13%, under Democratic presidencies, precisely when the stock market returns are substantially higher. This dynamic pattern accounts for more than half of the discrepancy in wealth accumulation between Democrats and Republicans over presidential cycles. A decomposition exercise uncovers two underlying forces in opposite directions: while the partisan gap in stock market participation through directly held investment accounts narrows during Democratic presidencies, the narrowing gap is dominated by the widening partisan gap in stock market participation through retirement accounts during the same periods. I further provide speculative evidence that the widening gap is related to job changes, and in particular, entrepreneurship entry.