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 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 INEQUALITIES IN THE DISTRIBUTION OF INCOME IN THE HOUSEHOLDS OF FARMERS IN POLAND

2019 ◽  
Vol XXI (4) ◽  
pp. 394-402
Author(s):  
Małgorzata Raczkowska ◽  
Kinga Gruziel
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Weather Conditions ◽  
Disposable Income ◽  
Farm Households ◽  
Farm Income ◽  
The Gini Coefficient ◽  
Central Statistical ◽  
Central Statistical Office ◽  
Per Capita

The purpose of the study was to identify and assess the level of income inequality in farm households. The research methods applied were literature studies and analysis of statistical data provided by the Central Statistical Office for the period 2012-2017. The subject of the study was the disposable income of a farm household per capita. A research hypothesis was adopted whereby, over the years 2010-2017, a systematic increase in income inequality in farm households took place. It was found that during the analysed years, there was an increase in disposable income per capita in farm households. When assessing the level of income inequality in this group of households, a decrease in income stratification measured by the level of the Gini coefficient, by the Schutz-Pietra measure, was noticed, although these changes were very small. Comparing the level of the Gini coefficient among all groups of households distinguished with regard to the main source of income, it was the group of farms that was characterised by the highest level of income inequality. In addition, income inequalities among farmers were characterised by the highest variation compared to other professional groups. This situation may be caused by the nature of farm income, which is conditioned, among others, by the size and productivity of the farm, its degree of specialisation, as well as weather conditions.

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.

THE GINI COEFFICIENT'S APPLICATION TO GENERAL COMPLEX NETWORKS

2005 ◽  
Vol 08 (01) ◽  
pp. 159-167 ◽  
Author(s):  
HAI-BO HU ◽  
LIN WANG
Keyword(s):  
Income Inequality ◽  
Complex Networks ◽  
Network Structure ◽  
Gini Coefficient ◽  
Scale Free ◽  
The Gini Coefficient ◽  
Scale Free Networks ◽  
General Complex

The Gini coefficient, which was originally used in microeconomics to describe income inequality, is introduced into the research of general complex networks as a metric on the heterogeneity of network structure. Some parameters such as degree exponent and degree-rank exponent were already defined in the case of scale-free networks also as a metric on the heterogeneity. In scale-free networks, the Gini coefficient is proved to be equivalent to the parameters mentioned above, and moreover, a classification of infinite scale-free networks is given according to the value of the Gini coefficient.

scholarly journals Income Inequality and Noncash Food Assistance Program in Central Java Province

2021 ◽  
Vol 16 (2) ◽  
Author(s):  
Yusuf Munandar
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Rural Areas ◽  
Food Assistance ◽  
Population Increase ◽  
Assistance Program ◽  
Central Java ◽  
The Gini Coefficient ◽  
Central Java Province

One measure of income inequality that is often used is the Gini Coefficient. In Central Java Province, the income inequality in March 2019 was increasing compared to income inequality in September 2018. To reduce this income inequality, the government is focusing on increasing government spending in the field of social assistance, including Non-Cash Food Assistance (Bantuan Pangan Non Tunai/BPNT). Thus, this study aims to calculate and obtain a reduction in the Gini Coefficient as a result of the implementation of the BPNT program in the Central Java Province of Indonesia. This study uses the Counter Factual Analysis (CFA) method and the March 2019 Susenas data. This study concludes that the implementation of the BPNT program in 2019 is quite effective in reducing the level of income inequality in the Central Java Province of Indonesia, which is able to reduce the Gini Coefficient of Central Java Province by -1.20%. The implementation of the BPNT program was able to make the expenditure of the lower class population increase faster than the expenditure of upper and middle class population. The implementation of the BPNT program changes the map of the income inequality level of 35 districts/cities in the Central Java Province of Indonesia but does not change the map of the level of income inequality between urban and rural areas in the Central Java Province of Indonesia. In addition, the implementation of the BPNT program in the Central Java Province of Indonesia has not been able to change the category of income inequality in the Central Java Province of Indonesia, namely that it remains in the moderate category. This study recommends improvements in terms of the target recipients of BPNT, the quality of the human resources of the companions, the time for receiving assistance, the quality of rice, and the readiness of e-warong in 35 districts/cities in the Province of Central Java, Indonesia.

scholarly journals Tax, transfers, and income inequality in New Zealand during 1988-2013

2021 ◽  
Author(s):  
◽  
Matthew Nolan
Keyword(s):  
New Zealand ◽  
Income Inequality ◽  
Income Distribution ◽  
Labour Supply ◽  
Disposable Income ◽  
Parameter Estimates ◽  
Transfer System ◽  
Transfer Policy ◽  
Transfer Payments ◽  
The Impact

<p>This dissertation investigates the role tax and transfer policy changes played in the evolution of New Zealand disposable income inequality between 1988 and 2013. Across five papers, the key changes in tax and transfer policies are identified, the labour supply response of individuals to the changes are estimated, and the impact of these changes on the income distribution is quantified. Overall, nearly 40% of the increase in income inequality during this period is attributable to changes in the tax-transfer system.  The tax and transfer payment changes investigated in this dissertation cover the gradual flattening of the tax scale over the 1980/90s, the reduction in benefit payments following the 1991 Mother of All Budgets, the introduction of Working for Families in 2005, and the erosion of transfer payments relative to the average wage throughout the period.  Given these changes, the efficacy of the tax transfer system for meeting vertical and horizontal equity goals is evaluated using data from the Household Economic Survey (HES). The redistributive effect of tax-transfer policy fell from 22.6 Gini points to 18.2 Gini points between 1988/91 and 2011/13, with a corresponding decline in the amount of vertical equity in the tax-transfer system. Between the same periods the degree of horizontal inequity rose,although this was predominantly the result of greater targeting in the tax-transfer system.  The adjustment in the structure of the tax-transfer system not only leads to a change in tax liabilities and transfer payments, but also generates a behavioural change by individuals with regards to the number of hours they would be willing to work. Preference parameter estimates over hours of work and income are generated for individuals in the sample, with imputed wages estimated for those who are out of work.  A tax-transfer microsimulation model, that utilises wage and preference parameter estimates, is then used to construct counterfactual scenarios where the tax-transfer system of a given year is applied to the population of other years. For example, the tax-transfer system of 1988-1991 is applied to the population in 2010-2013 in order to create a scenario representing what the disposable income distribution in 2010-2013 would look like with the 1988-1991 tax-transfer system. Estimates from this process suggest that nearly 40% of the increase in disposable income inequality between the 1988/91 and 2010/13 periods was due to the change in payments and labour supply behaviour associated with tax-transfer policy adjustments.  Other potential drivers of income inequality change were investigated by reweighting the HES data of one period to more closely represent the population of another period. Although shifts in the share of individuals in part time work also generated an increase in income inequality, the lift in higher educational attainment over this period is estimated to have reduced income inequality more sharply (by nearly 22%). The shift in the age distribution towards prime-aged work was not associated with any change in the aggregate income inequality measure.</p>

scholarly journals Energy transition and social justice: Do renewable energy levies have an impact on income distribution and energy poverty?

2021 ◽  
Author(s):  
Jan Priesmann ◽  
Saskia Spiegelburg ◽  
Reinhard Madlener ◽  
Aaron Praktiknjo
Keyword(s):  
Social Justice ◽  
Income Inequality ◽  
Low Income ◽  
Gini Coefficient ◽  
Electricity Consumption ◽  
Energy Transition ◽  
Relative Increase ◽  
Energy Poverty ◽  
The Gini Coefficient ◽  
Ex Post

Abstract Energy systems are decidedly the largest emitters of greenhouse gases. Therefore, transitioning them from fossil to renewable systems is a top priority for societies committed to reducing greenhouse gas emissions. However, such transitions involve substantial costs. In many cases, these costs are proportionally passed on to final energy consumers through levies on their electricity consumption. In our paper, we investigate the impacts of renewable support levies on social justice or, more specifically, on income inequality. For our study, we chose Germany where inflation-adjusted electricity prices for private households increased substantially because of such a levy for renewables. We base our analyses on representative household panel data with over 40,000 households from 2003 to 2018. Our results indicate that indiscriminate renewable support levies on electricity consumption increase income inequality and energy poverty. For our case in 2018, renewable support levies alone led to a relative increase of ~0.23% of the Gini coefficient and ~11.31% of the high cost low income (HCLI) energy poverty indicator measuring energy poverty intensity. Based on our findings, we propose a reform of the renewable support levy and analyze three options: (1) the abolition of the levy, (2) levies which are income-progressive proportionally to the income taxes, and (3) a high and flat levy in conjunction with an income-degressive compensation payment. Our ex-post analyses for 2018 indicate that a reformed levy system would have slightly decreased overall income inequality with relative decreases of ~0.23%, ~0.32%, and ~0.59% of the Gini coefficient for options (1), (2), and (3), respectively. But more importantly, such a system would have substantially decreased energy poverty by ~11.31%, ~30.45%, and ~31.45% for the HCLI energy poverty indicator for options (1), (2), and (3), respectively.

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