THE IMPACT OF TAXATION ON INCOME DISTRIBUTION: EVIDENCE FROM INDONESIA

2013 ◽  
Vol 58 (04) ◽  
pp. 1350024 ◽  
Author(s):  
KUNTA NUGRAHA ◽  
PHIL LEWIS
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Household Income ◽  
Income Tax ◽  
The Other ◽  
Data Sources ◽  
Input Output ◽  
Middle Income ◽  
The Impact ◽  
Major Data

The Indonesian economy has grown significantly since 2000, but income inequality has increased since 2001. One of the possible government tools to improve income inequality is through taxation. This paper evaluates household income, income tax, taxes on production, and their impact on income distribution. The major data sources are the National Socioeconomic Survey and the Input–Output Table. The key finding is that income tax only slightly improves income distribution, but taxes on production worsen income distribution. The other important finding is that both forms of taxation are regressive, especially for lower and middle income household. The results suggest that Indonesian taxation worsens income inequality.

THE IMPACT OF THE ANTI-CORRUPTION CAMPAIGN ON INCOME DISTRIBUTION: EVIDENCE FROM CHINA

2021 ◽  
pp. 1-23
Author(s):  
YING GE ◽  
JINJUN XUE
Keyword(s):  
Income Distribution ◽  
Survey Data ◽  
Household Income ◽  
The Other ◽  
Public Officials ◽  
Government Officials ◽  
The Public ◽  
Earnings Gap ◽  
Micro Level ◽  
The Impact

This paper provides the first systematic micro-level evidences on the effectiveness of anti-corruption campaign in disciplining public officials and its impact on income distribution. Based on China Household Income Project (CHIP) survey data 2007 and 2013, we found that party and government officials had significant hidden income and the public–private earnings gap was as high as 8% before the campaign. However, the hidden income become not significant and the earnings gap declined to −18% in this post-campaign period. The regions inspected by central anti-corruption inspection groups experience larger public earnings penalties compared to the other regions. Overall, our findings suggest that the privilege of public officials declined sharply during this anti-corruption campaign.

The impact of income inequality on economic residential segregation: The case of Malmö, 1991–2010

Urban Studies ◽  
2014 ◽  
Vol 52 (5) ◽  
pp. 906-922 ◽  
Author(s):  
Simone Scarpa
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Social Mobility ◽  
Residential Segregation ◽  
Household Income ◽  
Income Policy ◽  
Population Composition ◽  
Residential Sorting ◽  
Lower Extent ◽  
The Impact

As in other Western countries, in Sweden there is a widespread conviction that residential segregation influences the opportunities for residents’ social mobility and therefore is a cause of income inequality. But the opposite direction of causality, from income inequality to residential segregation, is often ignored. The paper fills this gap and analyses income inequality and economic residential segregation developments in Malmö in the years 1991–2010. During this period, changes in population composition owing to increased immigration had a negligible impact on income inequality, while the latter was primarily influenced by changes in the distribution of labour market earnings and capital incomes. At the same time, neighbourhood income inequality was predominantly driven by overall household income inequality and only to a much lower extent by the increase in residential sorting by income. Policy influencing income distribution rather than area-based strategies should thus be at the centre of current debates on residential segregation in Sweden.

scholarly journals THE IMPACT OF WORLD CPO PRICE CHANGE TOWARDS PRICES, ECONOMIC ACTIVITIES, AND INCOME DISTRIBUTION IN INDONESIA

2017 ◽  
Vol 11 (2) ◽  
pp. 207-226 ◽  
Author(s):  
Wisnu Winardi ◽  
Hadi Susanto ◽  
Kadim Martana
Keyword(s):  
Income Distribution ◽  
Household Income ◽  
Price Change ◽  
The Other ◽  
Cge Model ◽  
Social Accounting Matrix ◽  
Economic Activities ◽  
Cge Models ◽  
Simulation Results ◽  
The Impact

Paper ini menganalisis dampak perubahan harga CPO dunia terhadap harga-harga, aktivitas ekonomi, dan distribusi pendapatan rumah tangga di Indonesia dengan pendekatan model CGE. Model pertama mengasumsikan Indonesia tidak mampu memengaruhi harga, sedangkan model kedua mengasumsikan Indonesia mampu memengaruhi harga. Data utama yang digunakan bersumber dari Tabel Sistem Neraca Sosial Ekonomi Indonesia tahun 2008. Hasil simulasi menunjukkan bahwa apabila Indonesia berperan sebagai penerima harga, peningkatan harga CPO dunia diperkirakan akan berdampak pada penguatan nilai tukar, penurunan tingkat harga, dan meningkatkan aktivitas ekonomi, namun sedikit mengurangi kemerataan distribusi pendapatan. Di sisi lain, penurunan harga CPO dunia akan memberikan dampak yang sebaliknya. Apabila Indonesia dapat berperan memengaruhi harga, perubahan harga CPO dunia diperkirakan akan berdampak sama dengan bila Indonesia tidak dapat memengaruhi harga, namun dengan nilai perubahan yang relatif lebih kecil. Hasil ini mengindikasikan bahwa Indonesia sebaiknya dapat berperan sebagai penerima harga ketika harga CPO dunia bertendensi meningkat dan berperan memengahuhi harga ketika harga CPO dunia bertendensi turun. This paper analyzes the impact of world CPO change price towards prices, economic activities, and household income distribution using CGE Models. The first model assumes that Indonesia is a price taker, while the second model assumes that Indonesia could influence the price. The main data were taken from Indonesian Social Accounting Matrix 2008. The simulation results suggest that if Indonesia takes the role as a price taker, an increase in world CPO price will affect exchange rate, decrease prices, and improve economic activities, but it slightly worsened household income distribution. On the other hand, a decrease in world CPO price will bring about the opposite impacts respectively. Conversely, if Indonesia takes the role as a main price influencer, world CPO price change will lead to a similar result with less magnitude impacts. These findings suggest that Indonesia should be able to take the role as a price taker when world CPO price is increasing and as a main price influencer when world CPO price is decreasing.

scholarly journals Eradicating Income Inequality in Lower Middle-Income Countries

2020 ◽  
Vol 20 (2) ◽  
pp. 222-231
Author(s):  
Tangguh Pratysto ◽  
Ingrid Panjaitan
Keyword(s):  
Human Capital ◽  
Income Inequality ◽  
Income Distribution ◽  
Physical Capital ◽  
School Enrollment ◽  
Middle Income ◽  
Middle Income Countries ◽  
Long Run ◽  
The Rich ◽  
The Impact

Studying the distribution of income is an important issue to know what factors which affect to make income distribution more equitable, what factors can be the key to resolving the problem of income inequality, and shortening the distance between the poor and the rich. This paper studies the relationship between human capital, inflation rate, unemployment rate, physical capital, fiscal expenditure, gross domestic product growth, and urbanization on income inequality in 52 Lower Middle-Income Countries throughout 1990-2014. The authors estimate the impact of seven independent variables on income inequality as a dependent using Prais-Winsten with the robust model over period 1990-2014 at 52 Lower Middle-Income Countries. The results indicate an increase in human capital (gross school enrollment tertiary) can make the income distribution more even in the long run. The writers conclude that increases in human capital can reduce Gini coefficient and hence make income distribution fairer.

Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

2018 ◽  
Author(s):  
Gerhard Bosch ◽  
Thorsten Kalina
Keyword(s):  
Income Inequality ◽  
Labour Market ◽  
Economic Crisis ◽  
Household Income ◽  
Wage Bargaining ◽  
Living Standards ◽  
Social Model ◽  
Real Wages ◽  
The Impact ◽  
Over Time

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

Philanthropy and Income Inequality

2018 ◽  
Author(s):  
Elizabeth Anderson ◽  
Ing-Haw Cheng ◽  
Harrison Hong
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Tax Policies ◽  
Middle Income ◽  
Alternative Models ◽  
Tax Relief ◽  
Bill Gates ◽  
Welfare Implications ◽  
Tax Cuts

Bill Gates recently argued that philanthropy by households at the top of the income distribution might help ameliorate income inequality, and that tax policies should take this into account. Much of the research in economics on giving has been focused on middle-income households, so we know very little about the motives for giving by the very rich. We provide some initial evidence on what drives the giving of the richest Americans. First, we extrapolate anthropological evidence on how status concerns might influence philanthropy. Second, since the richest own a significant amount of equity, we use the Jobs and Growth Tax Relief Act of 2003 to see how their giving responded to unanticipated tax cuts, particularly for dividends. Third, we consider the welfare implications of philanthropy as opposed to alternative models for redistributing the wealth of the extremely rich.

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

Changes in Income Distribution in Brazil

2018 ◽  
Author(s):  
Rodolfo Hoffmann
Keyword(s):  
Income Inequality ◽  
Household Income ◽  
Gini Index ◽  
Military Coup ◽  
Transfer Programs ◽  
Per Capita ◽  
The Government ◽  
The Military ◽  
The Impact ◽  
Very High

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.

scholarly journals The impact of uptake of selected agricultural technologies on rice farmers’ income distribution in Ghana

2022 ◽  
Vol 11 (1) ◽  
Author(s):  
Monica Addison ◽  
Kwasi Ohene-Yankyera ◽  
Patricia Pinamang Acheampong ◽  
Camillus Abawiera Wongnaa
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Empirical Result ◽  
National Development ◽  
Farm Size ◽  
Rice Seed ◽  
Agricultural Technologies ◽  
Rice Farmers ◽  
Rural Income ◽  
The Impact

Abstract Background Government of Ghana’s effort to reduce income inequality consistently poses a major challenge to public policy formulation. The promotion and dissemination of agricultural technologies as a pathway out of income inequality in rural Ghana have received widespread support. Yet, knowledge about the impact of agricultural technologies on rural income inequality remains low. The objective of the study is to evaluate the link between the uptake of improved rice technologies and income distribution in the study area. Methods This paper uses a survey data from 917 smallholder rice producers in selected communities in Ghana. The study employs the Bourguignon, Fournier, and Gurgand (BFG) selection bias correction model, a two-stage model, to empirically analyse the role of agricultural technologies in rural income distribution. Results The empirical result shows that education, farm size, land ownership, participation in relevant extension training programmes enhance adoption, but gender (female) inhibits uptake of the selected technologies. The empirical result further shows that the uptake of the improved rice seed and fertilizer increases rice farmers’ net revenue significantly. The result further indicates that farmers’ choice of the selected agricultural technologies decreases the sample population income inequality, indicating the uptake of the technologies has an equalizing effect on rice farmers’ income distribution. Conclusion The study concludes that the use of the selected technologies has potential to fight rural poverty in Ghana. The findings have implications for National Development Planning Commission (NDPC) agenda of redistribution of wealth in Ghana.

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