Wealth Inequality Research Articles

Financial Technology, wealth Threshold, and Wealth Inequality in China

This study developed a theoretical model to examine the impact of financial technology (fintech) on wealth inequality from a wealth threshold perspective. The model's numerical simulation results suggest that fintech exerted an inverted U-shaped impact on wealth inequality. Empirical test results based on China Household Finance Survey panel data and fintech index data confirmed this finding. The impact varied across regions and among groups with differing education levels and financial literacy.

Intergenerational transfers, differential fertility, and wealth inequality

Abstract Rising income and wealth inequality across the developed world has prompted a renewed focus on the mechanisms driving inequality. This paper contributes to the existing literature by studying the impact from life-cycle savings, intergenerational transfers, and fertility differences between the rich and the poor on the wealth distribution. We find that bequests increase the level of wealth inequality and that fertility differences between the rich and the poor amplify this relationship. The counterfactual exercises show that the interaction between bequests and differential fertility is quantitatively important for understanding wealth inequality in the United States.

Impact of Uncertainty Shocks on Income and Wealth Inequality

AbstractWe analyze the distributional consequences of uncertainty shocks in the U.S. economy. While their impact on income inequality appears marginal when measured by a single statistic, there are important variations: inequality between the rich and middle‐income groups decreases, while inequality between the middle and poor‐income groups increases significantly. Additionally, uncertainty shocks increase labor income inequality through higher unemployment rates but simultaneously decrease nonlabor income inequality by reducing business and interest income. Uncertainty shocks reduce disposable income inequality, demonstrating the role of redistribution policy. Finally, they tend to reduce wealth inequality, mainly due to their adverse impact on financial asset prices, predominantly owned by wealthy households.

Media Review: The Gender of Capital: How Families Perpetuate Wealth Inequality

Media Review: The Gender of Capital: How Families Perpetuate Wealth Inequality

Moving money to support social justice movements: A spiritual practice.

Wealth inequality is rising, and millennials will be the future recipients of the largest intergenerational wealth transfer. Meanwhile, there is a need to move more money to support transformative social justice movements. This study examines the impact of spirituality as a motivator for the social justice movement giving among progressive young adult activists with wealth and class privilege, organizing toward the equitable redistribution of wealth, land, and power. Using survey data (n = 560), regressions and mediation models suggest that spiritual motivation was a significant positive predictor of how much participants monetarily gave to social justice movements. While religion did not significantly predict movement giving, indirect effects models showed that spirituality positively mediated the effect of being raised with any religion on movement giving compared to those indicating no religion. Implications are explored for how transformative organizing models draw upon secular spiritual practices in their pursuit of individual and collective change.

Markups and Inequality

Abstract We characterize optimal product market policy in an unequal economy in which firm ownership is concentrated and markups increase with firm market shares. We study the problem of a utilitarian regulator who designs revenue-neutral interventions in the product market. We show that optimal policy increases product market concentration. This is because policies that encourage larger producers to expand improve allocative efficiency, increase the demand for labor and equilibrium wages. We derive these results both in a static Mirrleesian setting in which we impose no constraints on the shape of interventions, as well as in a dynamic economy with wealth accumulation. In our dynamic economy optimal policy reduces wealth and income inequality by redistributing market share and profits from medium-sized businesses, which are primarily owned by relatively rich entrepreneurs, to larger diversified corporate firms.

Do higher public and private debt levels benefit the wealthy? An empirical analysis of top wealth shares in the UK

Purpose Despite the concomitant rise in recent decades in both debt levels (public as well as private) and wealth inequality, empirical evidence on the relationship is absent in existing literature. This is striking especially since recent theoretical contributions point to a link between debt and wealth inequality. We contribute to the debate by investigating empirically whether higher levels of UK public and household debt increase the UK wealth concentration at the top 1 and 10% of the wealth distribution.Design/methodology/approach We employ the Autoregressive Distributed Lag (ARDL) cointegration approach with UK time series data from 1970 to 2019. For robustness, a further analysis using panel data fixed effects estimation on a cross-country sample that also includes France and the USA is undertaken. We also use bootstrapping to conservatively estimate statistical significance.Findings Higher levels of public and household debt are found to increase wealth concentration at the top 1 and 10%. The effect is stronger for household debt. Fixed effects estimation on a cross-country dataset supports the results for the UK.Originality/valueThis study is the first to investigate empirically whether rising levels of UK public and household debt benefit the wealthy and thus widen the gap between the “haves” and “have-nots”.

The distribution of privately held business assets in the United States

Although privately held businesses are central to the economy and society, little is known about how their assets are distributed among the population. To better understand rising and persistent wealth inequalities, this paper describes the household distribution of private business assets in the United States and examines how it has changed over time. Using data from the 1989–2019 Survey of Consumer Finances, we show that the relative number of business owners has remained stagnant at low levels and that assets in privately held firms have become increasingly concentrated. In 2019, the top 1 % of households controlled nearly 80 % of the equity in private businesses, up from about 70 % in the late 1980s. Moreover, we find that these trends appear to be quite general and do not merely reflect dynamics among elites or in specific sectors of the economy. We discuss implications for the organization of the US economy, wealth inequality, and public policy.

Wealth inequality and community vitality in the aftermath of the Australian “Black Summer” bushfires

AbstractThis study investigates the adverse impact of community‐level wealth inequality in the aftermath of a natural disaster, and explores the role of community strength (i.e., community identification, cohesion, and identity continuity) in potentially mitigating these negative effects. Using geo‐targeted survey data from communities affected by the 2019/2020 Black Summer Bushfires in Australia (N = 363), we found that greater perceived wealth inequality was associated with lower confidence that the community would make necessary changes to meet the threat of future bushfires, lower collective efficacy regarding future bushfires, and lower anticipated quality of life. However, we also found evidence some of these adverse effects were attenuated among those who reported higher levels of community identification and community cohesion. This study illustrates that problems posed by wealth inequality extend to the context of disaster recovery and climate change adaptation, and further underscores the socially mediated nature of this threat by demonstrating the potential for community strength to play a buffering role.

Does increasing robot density exacerbate wealth inequality?

This article expands the economic consequences of applying automation technology beyond the labor market to encompass wealth distribution. It empirically investigates the effects of changes in robot density on household wealth inequality and potential mechanisms. By using three-digit industry codes provided by the China Census 1 % sampling data in 2015, this paper achieves a more accurate matching of industrial robot data with individual data and employs instrumental variables to alleviate potential endogeneity bias. This paper finds that increasing robot density exacerbates the inequality of family wealth, and this effect has a particularly significant impact on young labor force and workers with low education. Its impact mechanism may come from the inequality of employment difficulty and the increase of the non-transferability of human capital. This study is of great importance to deeper understand the economic consequences of the accelerated use of automation technology and accurately formulate public policies to narrow the wealth gap.

The Dynamics of Disparity: A Comprehensive Analysis of the Causes and Consequences of Income and Wealth Inequality and Policy Interventions for Mitigation

In today's global economy, economic disparities remain a pressing issue, persisting across different societies. This paper explores the causes, impacts, and potential policy interventions to address income and wealth inequality. The analysis draws on insights from prominent economists such as Darren Acemoglu, James A. Robinson, Joseph E. Stiglitz, Branko Milanovic, Thomas Piketty, and Emanuel Saez. According to the study, globalization, automation, and labor market dynamics are key economic factors driving inequality. In addition, political and social factors, including tax policies, governance models, and access to education and healthcare, significantly impact economic distribution. The consequences of inequality are multifaceted, affecting economic growth, social mobility, social health, and political stability. Furthermore, this paper discusses various policy interventions, such as progressive taxation, improved access to quality education and healthcare, and more robust social safety nets, as potential solutions to mitigate the adverse effects of economic disparities and promote a more equitable distribution of wealth.

The failed promise of freedom—Emancipation and wealth inequality in the Caribbean

The failed promise of freedom—Emancipation and wealth inequality in the Caribbean

Emotion regulation as affective neoliberal governmentality.

Emotion regulation is central in many therapy models, including couple and family therapy models. This article draws on poststructuralist governmentality studies and processual affect theory to offer insight into how the therapeutic concept of emotion regulation may reflect and support neoliberal affective forms of self-governance. We suggest that couple and family therapy-through using professional discourses and affect-oriented techniques or interventions-may be another site wherein neoliberal governmentality is implemented and extended in contemporary westernized neoliberalized societies. In facilitating emotion regulation, we argue that there is a risk that therapists may implicitly promote a neoliberal worldview that encourages clients to mobilize neoliberal techniques to become self-improving, entrepreneurial subjects, responsible for their happiness and well-being. Conditions of precarity associated with individualist, neoliberal capitalist ideologies and policies (e.g., unemployment, job insecurity, forced migration, wealth inequalities, mass incarceration, social isolation) generate emotional burdens for people to manage that professional techniques or interventions may normalize as clients' self-management tasks. We theorize emotion regulation as an affective governmentality tactic of power and suggest that couple and family therapy can offer points of resistance to individualization and responsibilization and opportunities for creating or affirming alternative subjectivities and affectivities.

The erosion of democracy in an age of wealth inequality: Unravelling the impact of subjective socioeconomic stratification

Since the 1980s, the growing wealth disparity in advanced capitalist societies has drawn attention from political economy scholars due to its profound effects on political systems. This research explores the relationship between wealth inequality and the stability of democratic institutions, focusing on how subjective class perceptions shape support for democratic governance. The findings indicate that as wealth inequality intensifies, it significantly reshapes class identities, influencing attitudes towards democracy. Both the subjective lower and upper classes exhibit diminished support for democratic systems, albeit for different reasons, which may pose risks to democratic stability. In contrast, the subjective middle class, a stronghold of democratic values, is shrinking in both proportion and influence as wealth inequality widens, potentially weakening democratic institutions further. This study underscores the connection between increasing wealth inequality and challenges to democratic values, highlighting the importance of policy measures to protect democratic integrity in the face of rising economic disparities.

URGENSI PERJANJIAN PRANIKAH SEBAGAI KESEPAKATAN AWAL SUATU PERKAWINAN DAN AKIBAT HUKUM BAGI AHLI WARIS

Abstract A marriage agreement (prenup) is a form of agreement made between one party and another party before holding a wedding ceremony to validate the two as husband and wife. Household issues related to property are closely related to marriage agreements (pre-nuptials). The existence of a marriage agreement (pre-nup) is intended to avoid wealth inequality in household relationships. The aim of this research is to study, analyze and provide a general view to the public regarding marriage (pre-nup) agreements. The research method used is qualitative research through a case study approach using legislation as regulations and also processing data through cases that have occurred as research references. The function and benefits of marriage agreements (pre-nuptials) as a guideline that regulates the rights and obligations of husband and wife regarding the future of the family, whether regarding children's education, business, etc. residence, etc. as long as it does not conflict with law and morality. Protect family members from the threat of domestic violence.

Connected Food: First Steps for an Ambitious National Food Strategy

Background: The global food system faces growing pressure from population growth, climate change, wealth inequity, geo-political instability, and damage to the ecosystems on which our food supply depends. Fragmentation of the priorities and needs of food system stakeholders—citizens, food producers, food industries, governments—compounds the problem, with competing or misaligned interests increasing the risk of failure to adequately meet the needs of those that form, and are served, by the food system. Growing consensus on the need for transformative system level change to address the problems facing the food system is yet to be significantly reflected in strategic action. Methods: The national food strategy of the UK is offered as an exemplar to discuss the need to promote more coherent and ambitious visions of transformative change that acknowledge the complexity of the food system as a whole. We draw upon cross-sectoral experience to distil the needs, priorities, and key food system tensions that must be acknowledged to promote transformative systems change that equitably delivers healthy sustainable diets, contributes to a resilient global food system, and protects the environment. Results: Greater coherence, ambition, and consideration of the food system as a whole are needed if a UK national food strategy is to contribute to significant transformative change. Conclusions: To promote this, we advocate for (1) a food system digital twin to model and test potential food system interventions or legislation; (2) a citizens’ forum to inform and co-develop a cohesive national food strategy; and (3) increased cohesion and integration of food system governance within government to drive a coherent, ambitious national food strategy.

Agrarian Elites, Wealth Inequality, and State Capacity: Evidence from Early Twentieth-Century Brazil

abstract: Traditional agrarian elites have often been portrayed as obstacles to the expansion of the state. Because landed actors are particularly exposed to taxation, inequality is expected to exacerbate their resistance to the development of fiscal capacity. This article argues that when propertied actors are politically dominant and obtain benefits from public spending that are proportional to their capital endowments, wealth inequality is associated with greater elite support for capacity investments. Using early twentieth-century Brazilian data, the author shows that where landed elites faced fewer political threats, higher levels of landholding concentration were associated with increased fiscal and administrative capacity. Tests of mechanisms corroborate the idea that this relationship results from elite demands for specific types of public spending. These findings contribute to the broader literature on state-building by providing new insights into the interaction between economic interests and political dominance in shaping subnational variation in the reach of the state.

The Consequences of Universal Basic Income

Universal Basic Income (UBI) has gained attention in both academic and policy circles. However, its implications are not fully understood. This paper develops a general equilibrium model with uninsured income risks to examine such implications. Multiple policy alternatives are considered under both deficit-expanding and deficit-neutral structures. If the UBI policy is not financed through additional taxation, its impact on measures of inequality is unclear. The consumption and income inequality decrease while wealth inequality rises. Deficit-neutral UBIs resolve this ambiguity as the higher marginal tax rates prevent the wealth inequality from rising, which leads to a more equal distribution of consumption and income. However, the aggregate effects are amplified. The income tax must be as high as 80% of the output to keep the deficit from expanding. The interest rate rises, and the output and capital-to-output ratio sharply fall as the precautionary saving motives are weakened.Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

An Analysis of Wealth Inequality

An Analysis of Wealth Inequality

The impact of wealth inequality on inflation and unfair competition among consumers

The impact of wealth inequality on inflation and unfair competition among consumers