scholarly journals Fiscal Decentralisation and Income Inequality: Empirical Evidence from OECD Countries

2017 ◽  
Vol 237 (3) ◽  
pp. 225-273
Author(s):  
Sibylle Stossberg ◽  
Hansjörg Blöchliger

Abstract Fiscal decentralisation might be partially responsible for rising income inequality by exacerbating competition between sub-national governments and compromising national government’s ability to redistribute. This paper investigates the relationship between fiscal decentralisation and economy-wide disposable income inequality. Drawing on a dataset of up to 20 OECD countries and covering the period 1996 to 2011, the analysis links a set of income inequality indicators and a wide array of fiscal decentralisation indicators. Results indicate that decentralisation might actually reduce income inequality, as measured by the Gini coefficient, but the effect is rather small and unstable across specifications. Fine-graining the analysis by using income percentile ratios, in turn, produces more significant and stable results. As such, the effects of fiscal decentralisation are not the same along the income distribution. While decentralisation tends to be associated with a reduction in income inequality between high incomes and the median, it is linked to a divergence of low income groups from the median, notably via sub-central tax autonomy. Transfers between levels of government also tend to be associated with an increase in the gap between lower and middle incomes. Interpreting these effects jointly, it seems that mainly middle income earners benefit from fiscal decentralisation.

2021 ◽  
pp. 135406882110119
Author(s):  
Matthew Polacko

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.


PLoS ONE ◽  
2021 ◽  
Vol 16 (6) ◽  
pp. e0251430
Author(s):  
Lazar Ilic ◽  
M. Sawada

Income polarization is a pressing issue which is increasingly discussed by academics and policymakers. The present research examines income polarization in Canada’s eight largest Census Metropolitan Areas (CMAs) using data at the census-tract (CT) level between 1971 and 2016. Generally, there are significant decreasing trends in the middle-income population with simultaneously increasing trends in low-income groups. The high-income groups have been relatively stable with fewer significant increasing population trends. Using conventional mapping and cartograms, patterns of the spatial evolution of income inequality are illustrated. Every CMA examined contains an increasing trend of spatial fragmentation at the patch level within each CMA’s landscape mosaic. The results of a spatial autocorrelation analysis at the sub-patch, CT level, exhibit significant spatial clustering of high-income CTs as one process that dominates the increasingly fragmented landscape mosaic.


2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Adyasha Suvadarshini ◽  
Bidhu Bhusan Mishra

The following paper attempts to understand if income determines the buying decision-making styles of consumers in Bhubaneswar, the capital city of Odisha, a state located on eastern India. A total of 103 respondents of Bhubaneswar were chosen by using the Mall intercept method. The samples were classified into three groups based on their average annual family income such as High Income, Middle Income and Low Income groups. Exploratory Factor Analysis was carried to identify the decisionmaking styles. ANOVA was employed to compare the shopping styles of these three income sub-groups. Results indicate that differences in consumer shopping styles exist among the income sub-groups. Findings of the study can be used by marketers for segmentation, targeting and positioning of retail shoppers which may facilitate them to compete efficiently. It is recommended that different income sub-groups should be viewed as distinct consumer segments and strategies should be formulated to cater each segment effectively.


2005 ◽  
Vol 15 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Mary O. Borg ◽  
Harriet A. Stranahan

Abstract:Is it unethical to advertise lotteries? Many citizens think that states should not be actively promoting and encouraging the public to spend hard-earned dollars on a bet that they are virtually guaranteed to lose. Perhaps more importantly, business ethicists are concerned that lottery advertising may be targeting the most vulnerable markets: households with the lowest income and education levels. If this were true, then it would increase the already disproportionately large burden of lottery taxes on the poor. Fortunately, our research finds no evidence to support the contention that advertising is responsible for high rates of lottery participation and expenditures by lower income groups or that low-income groups are more affected by advertising than high-income groups. On the contrary, awareness of lottery advertising seems to be associated with a higher probability to play Lotto only for the middle income group. This means that lottery advertising may actually reduce the regressivity of lottery taxes.


2013 ◽  
Vol 15 (1) ◽  
pp. 3-18 ◽  
Author(s):  
John C. Bacher

This paper provides an overview of the history of Canadian housing policy, reviewing the origins of both the programs which were implemented as well as the options which were defeated. Canada's approach to housing policy is also compared to the manner in which other prosperous western democratic states have approached their housing problems. The paper finds that one of the ironies of Canadian housing policy is that homeownership assistance programs for middle income groups and subsidies for private investors have continually emerged in the midst of political demands for publicly subsidized rental housing for low income groups. The Canadian government's rigid commitment to an assisted market approach is exceptional in comparison with other western states. Starting in the 1930s a unity between government and business emerged while a wide gulf remained between federal housing officials and advocates of social housing. The paper argues that this tilt in Canadian housing policy in favour of those Canadians who are least in need of government assistance in securing decent accommodation is no accident, but reflective of the marketplace ethos that has shaped all federal housing efforts.


2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
A Sawyer ◽  
F van Lenthe ◽  
C Kamphuis ◽  
M Poelman ◽  
S Djojosoeparto ◽  
...  

Abstract Background Inequalities in obesity and related non-communicable diseases pertain in part to less healthy dietary intake in disadvantaged groups. Examining determinants of intake as a complex adaptive system - i.e. interconnected determinants exerting non-linear influence on outcomes - honours the complexity of dietary choices, behaviours and intake, and could inform policies. This study used literature to map the complex system underlying dietary intake in low-income groups, to identify system structure and goals perpetuating poorer dietary outcomes. Methods A systematic umbrella literature review examined determinants of dietary outcomes in children, adolescents and adults. Inclusion criteria were: • Low-income sample; analysis by income (Non-)systematic review of quantitative/qualitative, observational/intervention studiesHigher/upper-middle-income countriesExposures: individual, sociocultural, physical, political determinants/correlates; effect modifiers Excluded outcomes were: breastfeeding, alcohol and neophobia. Using causal loop diagramming, extracted data on determinants, associations and interpretation were embedded in a systems map of mechanisms driving dietary intake. System structure (e.g. sub-systems) and goals (e.g. feedback loops) were analysed. Results A systems map of hypothesised mechanisms driving dietary intake in low-income groups was developed from 43 reviews and expert consensus. The system comprised sub-systems: 1) accessibility, 2) household resources, 3) financial constraints, 4) health/biology, 5) knowledge, attitudes and beliefs, 6) sociocultural influences. Identified sub-system goals could undermine healthy intake opportunities, e.g. energy-dense food choices for cost-efficiency, heightened exposure to energy-dense foods determining preferences. Conclusions The literature-based systems map articulates the systemic basis of poorer dietary outcomes in low-income groups. Understanding system structure and goals will inform equitable policy. Key messages Dietary intake in low-income groups is driven by a complex system of mechanisms which may perpetuate poorer dietary outcomes. Existing literature was synthesised as a systems map; identification of structures and goals of the system can inform health equity policies.


2019 ◽  
Vol 51 (4) ◽  
pp. 221-232
Author(s):  
Lindsey Vold ◽  
Meghan Lynch ◽  
Wanda Martin

Study Background Quality, accessibility, and affordability of housing and food are public health and nursing concerns. Yet, intersections between housing and food security are relatively understudied. Purpose The purpose of this article is to examine the evidence describing the relationship between food security and housing interventions, and second, describing specific opportunities for targeted strategies for nursing practice and research. Methods Arksey and O’Malley’s scoping review method was followed to search housing and food security research. A database search identified 46 studies that were mapped onto a social ecological theory to understand the micro, meso, exo, and macro interventions. Results Three major recommendations were identified. Micro-system recommendations include primary care screening for low-income groups. Meso- and exo-system recommendations focus on creating partnerships in research and enhancing social housing. Lastly, macro-system recommendations focus on challenging housing affordability standards. The major gap in the literature is addressing healthy housing. Conclusion Broadening housing interventions to include comprehensive approaches to meeting individuals’ needs offers more than simply packaging two interventions together. There is a significant moment in nursing in which nurses are witness to a paradigmatic shift in the ways to approach housing and food security.


2020 ◽  
Vol 11 (3) ◽  
pp. 78-98
Author(s):  
Svetlana V. Mareeva

This article examines the specifics of the income inequality structure in modern Russian society, as well as the tendencies for its change during the country’s post-Soviet period of development. It is shown that, compared to other countries, the traditional economic indexes which measure income inequality (decile ratio, Gini coefficient) position the Russian Federation as a country with a high degree of inequality within the mass layers of the population, especially when compared to Europe, albeit the level of inequality is slightly lower compared to BRICS member states. When using equivalence scales, which adjust the people’s income after factoring in economies of scale in consumption, Russia’s inequality figures improve even more. Based on quintile income distribution and the concentration of income within the highest quintile, Russia also occupies an intermediate position, surpassing most European countries, though not BRICS member states. However, the highest quintile is characterized by a high degree of differentiation. When transitioning from the wealthiest 20% of the population to the 1–5%, Russia’s place among other countries of the world changes significantly: when it comes to the gap between the “upper crust” and the masses, Russia can be considered one of the leading countries in the world. It has also been revealed that on the other end of the income distribution spectrum, at the population’s lower strata, there has been a noticeable “rise” of low-income groups in the last few years, with them somewhat approaching the middle. It was manifested in a more rapid increase in prosperity among the lower 40% of the population when compared to the population in general, as well as in a noticeable decrease in poverty levels during the 2000’s. Those citizens who were left in the lower strata of income distribution created a clearer image of poverty, which differs from the “average Russian” and emphasizes the importance of gauging not only low income level, but also an array of non-monetary inequality dimensions. Such a process of “homogenization” has lead to an increase in the size of groups with median and average income, with them being the most numerous groups in the current structure of Russian society. However, the increase in the number of people in said groups was not only caused by their shifts from low-income groups of the population, but also because of some members from the more prosperous strata experiencing an “averaging” of their level of income as well.


2019 ◽  
Vol 61 (1) ◽  
pp. 5-13 ◽  
Author(s):  
Loretta Lees

Abstract Gentrification is no-longer, if it ever was, a small scale process of urban transformation. Gentrification globally is more often practised as large scale urban redevelopment. It is state-led or state-induced. The results are clear – the displacement and disenfranchisement of low income groups in favour of wealthier in-movers. So, why has gentrification come to dominate policy making worldwide and what can be done about it?


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