Education expenditures and income distribution: an empirical analysis on European countries

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 248-257
Author(s):  
Ferdi Celikay ◽  
Mehmet Sengur
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Gini Coefficient ◽  
European Countries ◽  
Education Expenditure ◽  
Content Type ◽  
The Gini Coefficient ◽  
Education Expenditures ◽  
Short And Long Term

Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.

scholarly journals Financialization and Income Inequality in Selected European Countries, 2004–2013

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 20-32
Author(s):  
Grzegorz Golebiowski ◽  
Piotr Szczepankowski ◽  
Dorota Wisniewska
Keyword(s):  
Income Inequality ◽  
Eastern Europe ◽  
Gini Coefficient ◽  
Central And Eastern Europe ◽  
Value Added ◽  
European Countries ◽  
Total Employment ◽  
The Gini Coefficient ◽  
Synthetic Indicator ◽  
The Impact

Abstract The article examines the impact of financialization on income inequality between 2004 and 2013, through a panel analysis of seven European countries. Moreover, it attempts to examine differences in the perception of the phenomenon between the selected European countries belonging to the G-7 and countries from Central and Eastern Europe. The results demonstrate the existence of individual effects, which means that the level of inequality under examination is influenced predominantly by country-specific factors. The most significant correlation is noticeable between the level of unemployment and the degree of income inequality. An increase in unemployment is accompanied by a rise in the disproportions in the level of income that individual citizens have at their disposal whereas a decrease in the unemployment level contributes to an improvement of the GINI coefficient. Simultaneously, the results confirm the existence of significant correlations between the level of the GINI coefficient and such financialization indicators as the share of employment in finance in total employment and the contribution of the financial sector to total value added creation. The most prominent dependency was discovered when a constructed synthetic indicator was adopted as an indicator of financialization. At the same time, analysis of the synthetic country financialization indicator points to a conclusion that the level of financialization is higher in European countries belonging to the G-7 (especially Great Britain) than in countries from Central and Eastern Europe.

The Problem of Income Inequality

2019 ◽  
pp. 42-44
Author(s):  
Andrew Smithers
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Living Standards ◽  
Living Standard ◽  
The Gini Coefficient ◽  
The Us ◽  
The Uk ◽  
Distribution Of Income

Living standards change in line with GDP per head only if the distribution of incomes is unchanged. If incomes become less equally distributed the living standards of most people will fall even if GDP per head is stable. The Gini Coefficient is the most widely used indicator designed to measure the distribution of income. UK inequality, on this measure, has risen since 1977, stabilized since 1987, and fallen in recent years. In the US there has been a long-term increase in income inequality. Unless this US trend for increased income inequality halts, it is quite likely that even if GDP per head rises in the US, the living standard of the average voter will fall. The recent data suggest that changes in income inequality pose less of a threat to living standards in the UK then they do to those in the US.

scholarly journals Wybrane koncepcje pomiaru nierówności dochodowych

2021 ◽  
Vol 66 (2) ◽  
pp. 16-32
Author(s):  
Grzegorz Przekota ◽  
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Gini Coefficient ◽  
Disposable Income ◽  
Transfer Principle ◽  
Specific Measurement ◽  
The Gini Coefficient ◽  
Measurement Methodology ◽  
Empirical Material

Determining the level of income inequality requires the adoption of a specific measurement methodology. The aim of the study was to review and discuss the methodologies used to measure income inequality. Four measures are presented, each based on different assumptions. These measures were the Gini coefficient, Theil coefficient, Kukuła coefficient and unevenness coefficient. The first three measures, and in particular the Gini coefficient, are commonly described in the literature, while the unevenness coefficient is the author’s proposal for measuring income inequality. The empirical material for the research consists of data on the distribution of disposable income by decile groups in households in Poland for the years 2005–2017. The most important issue in practice regarding the measurement of income inequality was the transfer principle. Depending on the methodology adopted, the transfer of income is treated differently. The Gini, Theil and Kukula coefficients respond to any change in the income distribution, while the unevenness coefficient only to changes above the average. In a situation where the Gini coefficient (Theil and Kukula) decreases (increases), the level of inequality decreases (increases), but it is not known which transfers led to such a result. The decreasing (growing) unevenness coefficient means that these were transfers from groups with shares in income above (below) the average for groups with shares below (above) the average.

scholarly journals Getting to a feasible income equality

PLoS ONE ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. e0249204
Author(s):  
Ji-Won Park ◽  
Chae Un Kim
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Gini Coefficient ◽  
Government Policies ◽  
Government Interventions ◽  
Income Equality ◽  
Income Distributions ◽  
The Gini Coefficient ◽  
Negative Impacts

Income inequality is known to have negative impacts on an economic system, thus has been debated for a hundred years past or more. Numerous ideas have been proposed to quantify income inequality, and the Gini coefficient is a prevalent index. However, the concept of perfect equality in the Gini coefficient is rather idealistic and cannot provide realistic guidance on whether government interventions are needed to adjust income inequality. In this paper, we first propose the concept of a more realistic and ‘feasible’ income equality that maximizes total social welfare. Then we show that an optimal income distribution representing the feasible equality could be modeled using the sigmoid welfare function and the Boltzmann income distribution. Finally, we carry out an empirical analysis of four countries and demonstrate how optimal income distributions could be evaluated. Our results show that the feasible income equality could be used as a practical guideline for government policies and interventions.

scholarly journals Equality in Income and Sustainability in Economic Growth: Agent-Based Simulations on OECD Data.

2019 ◽  
Vol 11 (20) ◽  
pp. 5803 ◽  
Author(s):  
Sakaki
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Gini Coefficient ◽  
The Other ◽  
Agent Based ◽  
The Gini Coefficient ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity ◽  
Stable Growth

In countries that have developed under the current market economy, inequalities in income distribution tend to increase with three different trends, i.e., high (United States, United Kingdom, Japan), low (North Europe countries), and medium Gini coefficient levels. On the other hand, the relationship between income distribution and social welfare is generally a difficult problem to solve in economics. So, this paper discusses the impact of income distribution on the macroeconomy, limiting the scope to consistency with long-term economic growth. We attempt to answer these economic policy issues by simulation using an agent-based model based on replicator dynamics. As a result of the simulation in this paper, in general, in countries with the high marginal propensity to consume, long-term growth can be maintained by inducing equality in income distribution. On the other hand, a mature country with a low marginal propensity to consume can sustain not so high but stable growth despite increasing inequality in income distribution. According to simulation results based on OECD (Organisation for Economic Co-operation and Development) data, in the former UK, US, and Japan, the lower the Gini coefficient is, the higher the growth potential is, while in the latter Norway and Luxembourg, relatively stable growth is maintained even if the Gini coefficient increases.

scholarly journals Income Distribution and Human Trafficking Outflows

2018 ◽  
Vol 10 (2) ◽  
pp. 28
Author(s):  
Cassandra E. DiRienzo ◽  
Jayoti Das
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Human Trafficking ◽  
Empirical Evidence ◽  
Gini Coefficient ◽  
Theoretical Rationale ◽  
Country Level ◽  
The Gini Coefficient ◽  
Push Factor

This study seeks to close the gap between the theoretical rationale for the role of income inequality in human trafficking and lack of empirical evidence supporting this relationship. It is argued that differences in income, especially the income of the poorest in the population, is a significant push factor encouraging individuals to undertake risky migration. Nonetheless, the Gini coefficient, which is typically used in human trafficking research, does not accurately capture the theoretical rationale for why difference in population income, especially the income of the poorest in the population, should matter. A different metric for measuring income inequality – one that is tied to the theoretical underpinnings -- is introduced. Empirical evidence supporting the role that income plays on the poorest in the population on human trafficking outflows is offered. Specifically, as the poorest in the population become marginally better off, there is an increase in human trafficking outflows at the country level.

scholarly journals The labor share and income inequality: some empirical evidence for the period 1990-2015

2020 ◽  
Vol 28 (84) ◽  
pp. 173-195
Author(s):  
Iñaki Erauskin
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Income Inequality ◽  
Gini Coefficient ◽  
Content Type ◽  
Labor Share ◽  
Income Share ◽  
The Gini Coefficient ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze empirically the relationship between the labor share and income inequality, as measured by the Gini coefficient and by the income shares for different quintiles, during the period 1990–2015 for 62 developed and developing countries. Design/methodology/approach This study uses panel data techniques to analyze empirically the relationship between the labor share and income inequality. Findings This paper finds that a lower labor share is associated with a higher Gini coefficient. A lower labor share is found to be strongly associated with a smaller income share for the lowest two quintiles and larger income share for the highest quintile and weakly associated with a smaller income share for the third and fourth quintiles. Moreover, this paper finds that the lower the quintile, the stronger the impact of the labor share on the income share of the quintile. Social implications Policymakers should take into account the evolution of the labor share. Public policies that improve labor market outcomes, such as those aimed to promote participation in the labor market and strengthen the human capital of low-income groups, seem necessary to prevent the rise in economic inequalities. Moreover, as the digital transformation of society progresses, policies to promote skill deepening may have an important role in reversing excessive inequalities. Originality/value How changes in the labor share are associated with changes in the Gini coefficient, and how this is driven by income shares for different quintiles, for a broad range of countries during the most recent period, has not been comprehensively studied using panel data techniques.

Management of competition among sellers and its performance implications for business-to-business electronic platforms

2015 ◽  
Vol 6 (2) ◽  
pp. 199-222 ◽  
Author(s):  
Xiaoling Li ◽  
Xingyao Ren ◽  
Xu Zheng
Keyword(s):  
Longitudinal Research ◽  
Time Windows ◽  
Customer Relationship ◽  
Effective Control ◽  
Marketing Tactics ◽  
Long Term Effects ◽  
Content Type ◽  
Short And Long Term ◽  
Term Performance

Purpose – This paper aimed to analyze the short- and long-term effects of the breadth and depth of seller competition on the performance of platform companies, and investigated the underlying mechanisms of customers’ two-sided marketing tactics on the structure of the competition between sellers. Design/methodology/approach – A longitudinal research design was adopted by gathering daily market objective data on e-commerce platforms for 250 days, and the dynamic evolution effects was analyzed by using a vector autoregression model which compared the differences between the short- and long-term effectiveness of different customer relationship management (CRM) strategies. Findings – The breadth of competition amongst sellers improves the performance of platforms, whilst the depth of competition among sellers has a positive effect on the short-term performance. However, it has a negative effect on the long-term performance of their platforms. In both the short and long terms, advertising tactics that attract new buyers contribute more to increases in the breadth of seller competition than those that attract existing buyers do. Subsidies for new sellers decrease the depth of seller competition more than those for old sellers. Research limitations/implications – Further research could be undertaken to investigate the validity of marketing tactics other than advertising tactics, and thus expand the time windows of the available data. Practical implications – It is imperative for platform companies to implement effective control over seller competition to balance the interests of the sellers and of themselves. Originality/value – The dyadic paradigm of CRM research has been extended by considering the perspective of the electronic platform company, how the tactics of exploitation and exploration of two-sided customers impact upon seller competitive structures have been delved into and why new customers have a unique value to platform companies has been identified.

Help us to help you

2019 ◽  
Vol 35 (10) ◽  
pp. 29-30
Keyword(s):  
Asia Pacific ◽  
Asia Pacific Region ◽  
Content Type ◽  
Pertinent Information ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Performance Gains ◽  
Term Performance ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Hotels in the Asia-Pacific region have yet to fully utilize social media to promote their CSR initiatives. This means there is huge potential for improved stakeholder engagement, leading to short- and long-term performance gains. Originality The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Environmental and social sustainability priorities

2015 ◽  
Vol 35 (2) ◽  
pp. 216-245 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano
Keyword(s):  
Business Strategy ◽  
Social Sustainability ◽  
Operations Strategy ◽  
Manufacturing Strategy ◽  
Competitive Priorities ◽  
Content Type ◽  
Short And Long Term ◽  
Using Data ◽  
Term Performance

Purpose – Environmental and social sustainability are becoming key competitive priorities for companies, but the way in which they are integrated in operations strategies remains an open issue. The purpose of this paper is to determine whether established operations strategy configuration models (i.e. price-oriented, market-oriented and capability-oriented models) are modified to include environmental and social priorities and whether different operations strategy configuration models are equally successful in the short and long term. Design/methodology/approach – Analyses were performed using data from the International Manufacturing Strategy Survey (2009), including companies in the assembly industry in 21 different countries. According to previous studies, cluster analysis of competitive priorities and ANOVA analysis of the business strategy and short- and long-term performance were performed. Findings – The results show that traditional operations strategy configuration models are slightly modified. Market-oriented and capability-oriented operations strategies are complemented by environmental and social sustainability priorities. These operations strategies are adopted by companies with a differentiation and innovation business strategy. Moreover, capability-oriented companies, which are the most committed to environmental and social sustainability, perform better in both the short and long term. Practical implications – This research shows to companies that traditional operations strategies focusing on specific competitive priorities (e.g. low price) are being replaced by more holistic strategies that include sustainability priorities. However, environmental and social priorities contribute to competitive advantage when complementing capability-oriented operations strategies. Originality/value – This paper extends operations strategy configuration models highlighting how environmental and social sustainability priorities can be deployed together with traditional competitive operations priorities.

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