scholarly journals Trend of income inequality in Asia and effects of education

2020 ◽  
Vol 10 (2) ◽  
pp. 42-59
Author(s):  
Kang Park
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Educational Inequality ◽  
Level Of Education ◽  
Education Inequality ◽  
Marginal Effects ◽  
Negative Effect ◽  
Educational Variables ◽  
Unbalanced Panel Data

This study considers how education and globalization affect income inequality in Asia, with the unbalanced panel data. The evidence supports the validity of Kuznets inverted-U hypothesis for the connection between the income level and income inequality. However, when more variables are integrated into the model, the consistency of inverse U-shaped curve becomes weaker. The empirical results suggest that educational variables are highly influential in affecting income distribution. Our analysis indicates that a higher level of education achieved by the population aged 15 and over has improved income distribution in Asia, while educational inequality, measured by the educational Gini, has a negative effect on income distribution. Higher levels of globalization are correlated with higher levels of income inequality, while freedom, either political or economic, has marginal effects on the level of inequity in income distribution. Key words: Education inequality, globalisation, income inequality

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.

scholarly journals Educational Homogamy and Inter-Couple Income Inequality: Linking Demographic and Socio-Economic Consequences of Educational Expansion in Germany and Switzerland

2017 ◽  
Vol 43 (3) ◽  
pp. 587-610 ◽  
Author(s):  
Ramsey Wise ◽  
Christoph Zangger
Keyword(s):  
Decision Making ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Working Time ◽  
Economic Consequences ◽  
Educational Expansion ◽  
Educational Homogamy ◽  
Marginal Impact

AbstractHow is educational expansion associated with increased educational homogamy and income inequality? Using SOEP and SHP panel data, we randomly match couples and compare the resulting income distribution to the observed one. Educational homogamy thereby has had only a marginal impact on earnings-based income inequality between couples, which is largely due to the endogenous decision-making of couples concerning working time.

scholarly journals Does Income Inequality Lead to Education Inequality? A Cross Sectional Study of Pakistan

2020 ◽  
Vol 3 (1) ◽  
pp. 45-68
Author(s):  
Noman Arshed ◽  
Muhammad Shahid Hassan ◽  
Osama Aziz
Keyword(s):  
Income Inequality ◽  
Educational Attainment ◽  
Educational Inequality ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Education Inequality ◽  
Variable Approach ◽  
Feasible Option ◽  
Instrumental Variable Approach ◽  
Efficient Work

When firms do not know which labor is capable of efficient work, then paying all employees their average product as wage seems a feasible option. This simplest of ways discourages good workers and makes bad workers costly. Spence proposed to use educational attainment as the indicator of the labor force's capability to solve this problem. Since workers are randomly distributed in terms of their ability, Akerlof would lead us to believe that the level of educational attainment should be proportional to the individual's ability, which is not valid, practically. This study strives to find the determinants of educational inequality, where income inequality of the household is the prime suspect, and other indicators include gender, household size, and age. GMM instrumental variable approach was used to study the effect of income inequality on educational inequality. The results showed that it is income inequality, which restricts people from attaining higher education.

scholarly journals Determinants of Dividend Policy of Real Estate, Property, and Building Construction Companies Listed in IDX with Unbalanced Panel Data Approach

2020 ◽  
Vol 4 (2) ◽  
pp. 139
Author(s):  
Powell Gian Hartono ◽  
Anita Roosmalina Matusin
Keyword(s):  
Panel Data ◽  
Real Estate ◽  
Dividend Policy ◽  
Building Construction ◽  
Company Size ◽  
Construction Companies ◽  
Panel Data Regression ◽  
Negative Effect ◽  
Estate Property ◽  
Unbalanced Panel Data

This study involved companies engaging in real estate, property, and building construction companies listed in IDX for 2013 - 2019 period as the population. Unbalanced panel data regression was employed using the SPSS version 22 and E-Views version 10 to analyze the data and to test the hypotheses. The results showed that the previous year's dividend had a positive effect on dividend policy, while company size had a negative effect on dividend policy. This study proved that previous year's dividend and company size were key variables that determined companies’ dividend policy and they were major investment considerations for investors in order to obtain optimal returns.

scholarly journals Income Inequality in Indonesia: Panel Data of 34 Provinces 2014-2016

2018 ◽  
Vol 73 ◽  
pp. 10003
Author(s):  
Rofiuddin Mohammad ◽  
Firmansyah
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Minimum Wage ◽  
Global Level ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
The Difference ◽  
High Level

Income inequality is the difference in the ability of people to have goods or services, and more broadly, it is the problem of community welfare. Income inequality can be measured at regional, national and global level. Income inequality in Indonesia,, which representing by Gini index, is still relatively high, even though the number tends to decline. The high level of income inequality is influenced by various factors. This study aims to analyze the influence of economic growth, population and provincial minimum wage toward income inequality in Indonesia. By applying a fixed-effect of panel data regression model of the 34 provinces along 2014-2016, the study finds that economic growth and population do not affect the income inequality, while provincial minimum wage has the negative effect.

scholarly journals Robust determinants of income distribution across and within countries

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253291
Author(s):  
Liang Frank Shao
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Empirical Studies ◽  
Time Variable ◽  
Omitted Variables ◽  
Cross Sectional ◽  
Innovative Strategy ◽  
Positive Effects ◽  
Selection Operator

Multicollinearity widely exists in empirical studies, which leads to imprecise estimation and even endogeneity when omitted variables are correlated with any regressors. We apply an innovative strategy, different from the usual tools (instrumental variable, ridge regression, and least absolute shrinkage and selection operator), to estimate the robust determinants of income distribution. We transform panel data into (quasi-) cross-sectional data by removing country and time effects from the data so that all variables become zero mean and orthogonal to the country dummies and time variable, and multicollinearity becomes very low or even disappears with the quasi-cross sectional data in any specifications regardless of country dummies and time variable being included or not. Our contribution is threefold. First, we build a general method to address the multicollinearity issue in panel data, which is to isolate the common contents of correlated variables and ensures robust estimates in different specifications (dynamic or static specifications) and estimators (within- or between-effects estimators). Second, we find no evidence for the Kuznets hypothesis within and across countries; investment is economically and statistically the most robust determinant of income inequality; meanwhile, labor income share shows robustly and consistently positive effects on income inequality, which challenges the related literature. Last, simulations with our estimates show that the total marginal effects of development (regarding GDP, capital stock and investment) on income inequality are very likely to be positive within and between countries except that the impacts on middle-60% and top-quintile income shares are not so likely to increase income inequality across countries.

scholarly journals The Effect of Economic Growth, HDI, District/City Minimum Wage and Unemployment on Inequity of Income Distribution in Province of D.I Yogyakarta (2010-2018)

2021 ◽  
Vol 36 (2) ◽  
pp. 170
Author(s):  
Krisna Gita Suryani ◽  
Nenik Woyanti
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Panel Data ◽  
Income Distribution ◽  
Minimum Wage ◽  
Time Series Data ◽  
Secondary Data ◽  
Series Data ◽  
Section Data ◽  
Negative Effect

The high inequality of income distribution that occurs in the Special Region of Yogyakarta Province shows that economic development has not succeeded in bringing equity to the community. For this reason, an analysis is needed to determine the factors that inequality of income distribution in order to reduce inequality of income distribution that occurs in the Province of DI Yogyakarta. The purpose of this study was to determine the effect of economic growth, HDI, Distric/City Minimum Wage, and Unemployment. This research uses secondary data obtained from the Central Statistics Agency of D.I Yogyakarta Province. The data in this research is panel data consisting of cross section data from 5 districs/cities and time series data for 2010-2018. The data analysis used was panel data regression analysis with the Fixed Effect regression model. The results of the regression analysis show that economic growth does not have a significant effect on inequality of income distribution. Meanwhile, HDI, Distric/City Minimum Wages and Unemployment have a significant effect on the inequality of income distribution. HDI has a negative effect, while Distric/City Minimum Wage and Unemployment have a positive effect on inequality of income distributed in the Province of DI Yogyakarta in 2010-2018

Income Inequality, Democracy, and Public Sector Size

2005 ◽  
Vol 70 (1) ◽  
pp. 158-181 ◽  
Author(s):  
Cheol-Sung Lee
Keyword(s):  
Public Sector ◽  
Panel Data ◽  
Income Inequality ◽  
Strong Interaction ◽  
Developed Countries ◽  
The State ◽  
The Other ◽  
State Institutions ◽  
Unbalanced Panel Data ◽  
Developing And Developed Countries

This study synthesizes and tests explanations of how public sector size and democracy affect income inequality. The results, based on unbalanced panel data for 64 developing and developed countries and a total of 341 observations from 1970 to 1994, show that a strong interaction between democracy and public sector development explains withincountry income inequality. Public sector expansion translates into worse distributional outcomes in nondemocracies or limited democracies because the state is more inclined to support the development of particular core industries or client populations in urban formal sectors through targeted taxation or transfer systems. On the other hand, the larger public sector size leads to better distributional outcomes in fully institutionalized democracies because the democratic political mechanisms enable the state institutions to be more responsive to the demands of lower classes and more committed to achieving better distributional outcomes. This study demonstrates that democracy is associated with inequality as an institutional background that converts the effects of public sector size on inequality from positive to negative by strengthening the hegemony of equity orientation within state institutions.

Does Clientelism Affect Income Inequality? Evidence from Panel Data

2018 ◽  
pp. 1-24
Author(s):  
Ebney Ayaj Rana ◽  
Mustafa Kamal
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Management Strategies ◽  
Political Regime ◽  
Cross Sectional ◽  
Fiscal Management ◽  
Long Run ◽  
Negative Effect ◽  
Cross Sectional Dependence ◽  
The Relationship

This paper studies the determinants of income inequality in a panel of countries to provide empirical evidence to the relationship between income inequality and clientelism. Using different panel data techniques, especially group mean fully modified OLS estimator, and also allowing for control variables, cross-sectional heterogeneity and cross-sectional dependence, we find that in the long run, clientelism exerts a significant negative effect on income equality. The overall results of the study have implications for fiscal management strategies and political regime choice.

scholarly journals An assessment about the relationship between educational inequality and economic growth in Brazilian Northeast region

2020 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Frederico Uchoa
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Educational Inequality ◽  
Dynamic Panel Data ◽  
Economic Policies ◽  
Dynamic Panel ◽  
Unequal Distribution ◽  
Education Inequality ◽  
Panel Data Estimation ◽  
The Impact

In this paper we analyze the impact of education inequality on the income of formal workers in Northeast Brazil. For this study, we analyzed the data collected from censuses data and estimate a dynamic panel data model. Statistical analyses were performed by using the quasi-maximum likelihood linear dynamic panel data estimation, an approach that produce consistent estimates with large n and small T. We found a negative and statistically significant impact of education inequality on economic growth, which is convergent with the literature that advocates that an unequal distribution of education reduces growth. Our results suggest that economic policies should be targeted not only more at education but also more equal access to education.

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