Income Inequality Estimation of Rural Region of KP Province: A Gini Coefficient Approach

Since the 1980s, income inequality has increased markedly and has reached the highest level ever since it started being recorded in the U.S. This paper uses an overlapping generations model with incomplete markets that allows for household heterogeneity that is calibrated to match the U.S. economy with the purpose to study how skill-biased technological change (SBTC) and changes in taxation quantitatively account for the increase in inequality from 1980 to 2010. We find that SBTC and taxation decrease account for 48% of the total increase in the income Gini coefficient. In particular, we conclude that SBTC alone accounted for 42% of the overall increase in income inequality, while changes in the progressivity of the income tax schedule alone accounted for 5.7%.

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

e-Finanse ◽

10.1515/fiqf-2016-0005 ◽

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.

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The Optimum Level of Income Inequality in South Asia: An Econometric Analysis

South Asia Economic Journal ◽

10.1177/13915614211039087 ◽

2021 ◽

pp. 139156142110390

Author(s):

Fahmida Khatun ◽

Syed Yusuf Saadat

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Gross Domestic Product ◽

South Asia ◽

Gini Coefficient ◽

Econometric Analysis ◽

Domestic Product ◽

Optimum Level ◽

Capita Gross Domestic Product ◽

Per Capita

Inequality in the distribution of income can be beneficial or detrimental for economic growth depending on the level of inequality. This study advocates that when income inequality is low, increase in income inequality increases economic growth, whereas when income inequality is high, increase in income inequality decreases economic growth. The level of inequality that maximizes economic growth is defined as the optimum level of income inequality. This article attempts to determine the optimum level of income inequality for South Asia through an econometric analysis. It uses panel data from Bangladesh, India, Nepal, Pakistan and Sri Lanka, over a 34-year period to undertake a systematic investigation using panel instrumental variables techniques. The results of this study confirm that an optimum level of income inequality does exist, and occurs at a Gini coefficient value of 0.4492. Thus, this research empirically confirms that the relationship between income inequality and economic growth is non-linear. Further calculations show that for an economy that is at the optimum level of income inequality, the per capita gross domestic product can be expected to double within approximately 13 years, provided all other factors are held constant. However, a change in the Gini coefficient by 0.10 units in either direction—higher or lower—away from the optimum level, can increase the number of years for the per capita gross domestic product to double by 55 to 57 years, depending on the method of approximation. JEL: D31, D63, O15, O40

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Impact of Self-Help Group (SHG) Membership on Income and Income Inequality

Advances in Finance, Accounting, and Economics - Handbook of Research on Microfinancial Impacts on Women Empowerment, Poverty, and Inequality ◽

10.4018/978-1-5225-5240-6.ch017 ◽

2019 ◽

pp. 341-364

Author(s):

Maniklal Adhikary ◽

Sumanta Kumar Das

Keyword(s):

Income Inequality ◽

Gini Coefficient ◽

Rural Women ◽

Lorenz Curve ◽

Direct Impact ◽

Self Help ◽

Birbhum District ◽

Direct Outcome ◽

The Impact ◽

Self Help Group

The microfinance program has now been recognized as an effective tool to empower economically the rural women folk. The earning is the most important direct outcome of micro finance participation unlike acquiring empowerment. Participation in the program helps women to inculcate their saving habit. It gives access to the formal credit to them. All these have direct impact on their economic condition. This study explores the impact of microfinance program on the income of the program participants of Birbhum District in West Bengal in India. The study also focuses on how participation helps in reducing inequality in income of the participants. The major finding of the study is that women self-help group (SHG) members have the higher level of income compared to that of non-SHG members. The study also shows that SHG participation also helps them in reducing inequalities in their income. Gini coefficient and Lorenz curve technique has been used to assess the income distribution of the respondents.

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The Problem of Income Inequality

Productivity and the Bonus Culture ◽

10.1093/oso/9780198836117.003.0007 ◽

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.

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Working for Less: Income Inequality and the Diminishing Share of Labor in China’s National Wealth

Asian Social Science ◽

10.5539/ass.v13n6p81 ◽

2017 ◽

Vol 13 (6) ◽

pp. 81

Author(s):

Songtao Wang ◽

Tristan Kenderdine ◽

Zhen Qi

Keyword(s):

Income Inequality ◽

Gini Coefficient ◽

Labor Income ◽

Income Share ◽

Income Gap ◽

National Wealth ◽

Labor's Share

This paper demystifies variation in labor’s share of national labor income in China from the perspective of the income gap. We extend the gross national labor income function by introducing a Gini coefficient to support our argument that the share of gross national labor income decreases with an increasing Gini coefficient. The hypotheses are tested using provincial data from 1996 to 2010: (1) the Gini coefficient’s ‘inverted U’ shape partially contributes to the U-shaped evolution of the labor income-share; (2) China’s 15 per cent decline in the labor income share can be explained by the widening income gap during that time.

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Thresholds of income inequality that mitigate the role of gender inclusive education in promoting gender economic inclusion in sub-Saharan Africa

Social Responsibility Journal ◽

10.1108/srj-04-2019-0118 ◽

2019 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 1

Author(s):

Simplice Asongu ◽

Nicholas Odhiambo

Keyword(s):

Income Inequality ◽

Inclusive Education ◽

Gini Coefficient ◽

Tertiary Education ◽

Labour Force ◽

Sub Saharan Africa ◽

Female Employment ◽

Content Type ◽

Economic Participation ◽

Sub Saharan

Purpose This study aims to provide the thresholds of inequality that should not be exceeded if gender inclusive education is to enhance gender inclusive formal economic participation in sub-Saharan Africa. Design/methodology/approach The empirical evidence is based on the generalised method of moments and data from 42 countries during the period 2004-2014. Findings The following findings are established. First, inclusive tertiary education unconditionally promotes gender economic inclusion, while the interaction between tertiary education and inequality is unfavourable to gender economic inclusion. Second, a Gini coefficient that nullifies the positive incidence of inclusive tertiary education on female labour force participation is 0.562. Second, the Gini coefficient and Palma ratio that crowd-out the negative unconditional effects of inclusive tertiary education on female unemployment are 0.547 and 6.118, respectively. Third, a 0.578 Gini coefficient, a 0.680 Atkinson index and a 6.557 Palma ratio are critical masses that wipe out the positive unconditional effects of inclusive tertiary education on female employment. The findings associated with lower levels of education are not significant. Practical implications As the main policy implication, income inequality should not be tolerated above the established thresholds for gender inclusive education to promote gender inclusive formal economic participation. Other implications are discussed in the light of sustainable development goals. Originality/value This study complements the existing literature by providing inequality thresholds that should not be exceeded for gender inclusive education to promote the involvement of women in the formal economic sector.

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Shrimp production and its effects on family income inequality in some selected areas of Khulna district

Research in Agriculture Livestock and Fisheries ◽

10.3329/ralf.v7i1.46843 ◽

2020 ◽

Vol 7 (1) ◽

pp. 153-163

Author(s):

Asma Ul Husna ◽

Dilshad Zahan Ethen ◽

Ismat Ara Begum ◽

Farzana Yesmin ◽

Hurunnahar Khushi ◽

...

Keyword(s):

Income Inequality ◽

Gini Coefficient ◽

Family Income ◽

Least Square ◽

Small Farmers ◽

Shrimp Farm ◽

Face To Face ◽

Ordinary Least Square ◽

Shrimp Production ◽

Hired Labor

This study attempted to find out the determinants of shrimp production and to assess the effects of income from shrimp production on family income inequality in Khulna district of Bangladesh. Forty-five farmers were selected from the Bhanderkote union of Batiaghata Upazila under Khulna District. Among them 15 were small farmers, 22 were medium farmers and 8 were large farmers. Data were collected from May to July 2014 through face to face interview. Ordinary Least Square had been used to find out the determinants of shrimp production. Gini coefficient was measured to see the effects of family income inequality. Expenditure on shrimp fingerling, feed, lime, education, and hired labor were the important determinants and had significant effects on shrimp production. Shrimp farm incomes were equal among all categories of farmers (small, medium and large) and all farmers bear the value of Gini0.31, 0.24, 0.12 and 0.36 respectively. In the case of nonfarm incomes small, large and all farmers were relatively equal (G=0.49, G=0.42, and G=0.44 respectively) where the medium farmers (G=0.55) were relatively unequal. Res. Agric., Livest. Fish.7(1): 153-163, April 2020

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THE GINI COEFFICIENT'S APPLICATION TO GENERAL COMPLEX NETWORKS

Advances in Complex Systems ◽

10.1142/s0219525905000385 ◽

2005 ◽

Vol 08 (01) ◽

pp. 159-167 ◽

Cited By ~ 11

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.

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