scholarly journals College Tuition and Income Inequality

2022 ◽  
Vol 112 (1) ◽  
pp. 81-121
Author(s):  
Zhifeng Cai ◽  
Jonathan Heathcote
Keyword(s):  
Income Inequality ◽  
Continuous Distribution ◽  
College Attendance ◽  
Average Ability ◽  
College Quality ◽  
College Tuition ◽  
Competitive Model

This paper evaluates the role of rising income inequality in explaining observed growth in college tuition. We develop a competitive model of the college market, in which college quality depends on instructional expenditure and the average ability of admitted students. An innovative feature of our model is that it allows for a continuous distribution of college quality. We find that observed increases in US income inequality can explain more than half of the observed rise in average net tuition since 1990 and that rising income inequality has also depressed college attendance. (JEL D31, I22, I23, I24)

scholarly journals Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

2021 ◽  
Vol 13 (11) ◽  
pp. 6411
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Ibrahim Saeed ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Noman Arshed ◽  
...  
Keyword(s):  
Income Inequality ◽  
Social Sustainability ◽  
Data Availability ◽  
Democratic Accountability ◽  
Investment Portfolio ◽  
Economic Activities ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run

Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.

Institutions, Models of Capitalism and Inequality in Income Distribution: An Empirical Investigation

2017 ◽  
Vol 17 (3) ◽  
pp. 651-685 ◽  
Author(s):  
Gilberto Antonelli ◽  
Pinuccia P Calia ◽  
Giovanni Guidetti
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Empirical Investigation ◽  
Econometric Evidence ◽  
Definition Of ◽  
The Empirical Analysis ◽  
Statistical Indicators ◽  
Different Levels

Abstract The article analyses the role of institutions in the determination of income inequality in a sample of OECD countries. Basing on the seminal approach by Amable, the article discusses the theoretical definition of model of capitalism. The basic idea is that each model of capitalism is defined by the cobweb of complementary relationships established among different institutions. Using a set of statistical indicators of the operation of institutions in two different years, 1995 and 2010, the empirical analysis points out five models of capitalism and exhibits how their composition has changed in this lapse of 15 years. In the following sections of the article, we investigate the role played by the model of capitalism in the determination of income distribution, measured through a standard Gini index. After controlling for a set of variables, the econometric evidence shows that different models of capitalism present significantly different levels of income inequality.

Inequality of Opportunity in Mexico

2019 ◽  
pp. 134-158
Author(s):  
Roberto Vélez Grajales ◽  
Luis A. Monroy-Gómez-Franco ◽  
Gastón Yalonetzky
Keyword(s):  
Income Inequality ◽  
Lower Bound ◽  
Social Mobility ◽  
Wealth Inequality ◽  
Inequality Of Opportunity ◽  
Unequal Distribution ◽  
Variable Bias ◽  
Unequal Opportunities ◽  
Available Information

Mexico is a country with high levels of inequality and low intergenerational social-mobility rates for those located at the bottom extremes of the wealth distribution. Although such low rates suggest that at least a share of the observed income inequality may be due to an unequal distribution of opportunities, this conjecture has not been thoroughly tested in the literature. The present article fills this gap estimating the lower bound of the contribution of unequal opportunities to income and wealth inequality in Mexico, with an operationalization of the “ex-ante” approach to the measurement of inequality of opportunity. Relying on a national representative survey designed for the analysis of social mobility, namely, the ESRU Survey on Social Mobility in Mexico (2011), we are able to define a broad set of circumstance groups (“types”), encompassing the wealth of the household of origin. This available information reduces the omitted variable bias of previous estimations and allows for a better account of the role of inequality of opportunity in income inequality. Our results show that the lower bound of the contribution of unequal opportunities to total income inequality and total wealth inequality is around 30 per cent, which is substantially higher than previous estimations for Mexico and ranks among the highest values in Latin America.

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

scholarly journals Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach

2021 ◽  
Author(s):  
Diogo Correia ◽  
Ricardo Barradas
Keyword(s):  
Time Series ◽  
Income Inequality ◽  
Economic Performance ◽  
Labour Productivity ◽  
Personal Income ◽  
Integration Process ◽  
Income Share ◽  
Portuguese Economy ◽  
The Portuguese Economy

The aim of this paper is to conduct a time series econometric analysis in order to empirically evaluate the role of financialisation in the slowdown of labour productivity in Portugal during the period from 1980 to 2017. During that time, the Portuguese economy faced a financialisation phenomenon due to the European integration process and the corresponding imposition of a strong wave of privatisation, liberalisation and deregulation of the Portuguese financial system. At the same time, Portuguese labour productivity exhibited a sustained downward trend, which seems to contradict the well-entrenched mainstream hypothesis on the finance–productivity nexus. Based on the post-Keynesian literature, we identify four channels through which the phenomenon of financialisation has impaired labour productivity, namely weak economic performance, the fall in labour’s share of income, the rise of inequality in personal income and an intensification of the degree of financialisation. The paper finds that lagged labour productivity, economic performance and labour income share positively impact labour productivity in Portugal, while personal income inequality and the degree of financialisation negatively impact labour productivity in Portugal. The paper also finds that the main triggers for the slowdown of labour productivity in Portugal are the degree of financialisation and personal income inequality over the last decades.

scholarly journals Preprint of "Income Inequality Reduces Civic Honesty"

2020 ◽  
Author(s):  
Hongfei Du ◽  
Anli Chen ◽  
Peilian Chi ◽  
Ronnel B. King
Keyword(s):  
Experimental Design ◽  
Income Inequality ◽  
Crucial Role ◽  
Social Outcomes ◽  
Causal Effects ◽  
Wide Range ◽  
Multi Level ◽  
Detrimental Impact

Income inequality has been shown to have a detrimental impact on a wide range of psychological, economic, and social outcomes. In this study, we focus on the role of income inequality in reducing civic honesty. Study 1 reanalyzed data of a “lost wallet” experiment conducted by Cohn, Maréchal, Tannenbaum, and Zünd (2019) in 355 cities spread across 40 countries. Multi-level analyses indicated that citizens in countries with higher income inequality were less likely to return a lost wallet. Study 2 examined the causal effects of income inequality by utilizing an experimental design. We found that income inequality reduced one’s personal desire to return a lost wallet. Convergent findings from two studies indicate the crucial role played by income inequality in reducing civic honesty.

scholarly journals The role of infrastructure in economic growth and income inequality in Indonesia

2020 ◽  
Vol 13 (1) ◽  
pp. 102-115
Author(s):  
Achmad Tjachja Nugraha ◽  
Gunawan Prayitno ◽  
Masito Erlando Situmorang ◽  
Ahmadriswan Nasution
Keyword(s):  
Economic Growth ◽  
Income Inequality
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