Income Inequality and Per Capita Income: Equilibrium of Interactions

2020 ◽  
Author(s):  
Oghenovo A. Obrimah
2020 ◽  
pp. 097674792091082
Author(s):  
Ranjan Aneja ◽  
Barkha ◽  
Umer Jeelanie Banday

This article attempts to examine the behaviour of various sectors, with emphasis on the role of income inequality. First, the article estimates the sectoral decomposition in terms of net state domestic product (NSDP) among different states from years 1991–1992 to 2016–2017. Second, we analyse the sector-wise decomposition of regional inequality in term of per capita income. Finally, we analyse the role of developmental expenditure in regional inequalities in term of per capita developmental expenditure across various states. Based on empirical results, India has witnessed a high growth in per capita income in the post-reform period. With high growth rate, the sectoral composition of income has also registered a major change. The tertiary sector is the major contributor to growth in the post-reform period. At the sectoral level, disparity decreased within the sectors in case of primary and tertiary sector and increased in secondary sector. However, overall, the tertiary and secondary sectors are more responsible for raising the income inequality among the states while primary sector is offsetting this gap. JEL: O15, I14, I32, O12


2017 ◽  
Vol 2 (1) ◽  
Author(s):  
Uswatun Hasanah

AbstractHuman resource is one of capital importance in the development of a nation. One of the important aspects that affect human resources are a public health level, where health sector has an important role. The status of one's health is the result of the interaction of various factors, namely internal and external factors. Internal factors consist of physical and psychological factors, while external factors consist of economic factors, education, environment and cultureThis research aims to examine and analyze the effect of income inequality as measured by the Gini Ratio against the health sector as measured by life expectancy in Indonesia in 2005-2013. On the research of regression equation using data panels with Random Effects Model approach. The results of this research is the inequality of income, per capita income, and Government expenditure in the health effect simultaneously against health sector in Indonesia in 2005-2013 and is partial, inequality of income, per capita income, and Government expenditure in the health sector impact health sector in Indonesia in 2005-2013. Keywords : Health sector, income inequality, income per capita, Government expenditure in health sector. Research Area: Indonesia


Author(s):  
Markéta Hnízdilová ◽  
Václav Adamec

The study tackles the issue of distribution inequality in equalized per capita income in households defined by multiple grouping criteria in the Czech Republic before, during and after the economic and financial crisis. The factors were economic status of the household head, number of children, education and the NUTS 3 administrative regions. Interval grouped per capita income data assembled within the EU-SILC framework via quota sampling were received from czso.cz for 2008, 2012 and 2016. Indicators of income level, variation, quantiles, medial and Gini index were calculated for the respective household groups. Income concentration in the Czech Republic is considerably low among OECD states and still decreasing due to government social and economic policy and favourable phase of the economic cycle. The largest income inequality was detected in the self-employed, jobless and qualified employees, households with 3 or more children, single-parent families with dependants, households with one or both tertiary educated parents or households residing in Prague or Středočeský region. The threat of poverty is imminent in the jobless, economically inactive pensioners, unqualified labourers and households with 3 or more children. Geographically, the poverty affects households mostly in Moravskoslezský or Ústecký regions. Government measures evidently helped reduce income inequality, poverty and social exclusion in Ústecký region in 2008. The least affected regions by poverty were Prague and Středočeský region. Significant differences in income level or concentration of income distributions by regional and other household grouping criteria were revealed.


2015 ◽  
Vol 18 (2) ◽  
pp. 557
Author(s):  
Airton Lopes Amorim ◽  
Ricardo Bruno Nascimento dos Santos ◽  
Eliane Pinheiro de Sousa ◽  
Daniel Arruda Coronel

A desigualdade de renda tende a diminuir em municípios com elevada desigualdade e a aumentar naqueles com baixa desigualdade? Este trabalho tenta responder a essa questão ao verificar se existiu convergência da desigualdade de renda entreos municípios cearenses, nos anos 1991 e 2000. A principal medida de desigualdade de renda utilizada foi o índice de Gini, sendoos testes de convergência realizados por meio de modelos com efeito threshold, nos quais as variáveis concernentes ao índice deGini, à renda per capita e aos anos de estudo, medidas no período inicial, foram consideradas como possíveis variáveis threshold. Os resultados permitiram rejeitar a hipótese de clubes de convergência da desigualdade de renda entre os municípios cearenses. Noentanto, não se pode rejeitar a hipótese de convergência condicional da desigualdade de renda entre os mesmos, sendo que eles estariam convergindo para um valor médio de equilíbrio de desigualdade de renda maior, ou seja, os municípios cearenses estariam tornando-se mais concentradores de renda per capita. Palavras-chave: Desigualdade de renda, Índice de Gini, efeitos Threshold.EMPIRICAL EVIDENCES ABOUT THE CONVERGENCE OF INCOME INEQUALITY AMONG CITIES FROM CEARAAbstract: The income inequality tends to decrease in municipalities with high inequality and increase in those with low inequality? This paper intends to answer this question by checking if there was convergence of income inequality in the municipalities of the State of Ceará, in the years 1991 and 2000. The main measurement of income inequality used was the Gini index, with the convergencetests conducted through models with threshold effect, in which the variables relating to the Gini index, to the per capita income and to the years of study were considered, measured in the initial period as possible threshold variables. The results allowed rejectingthe hypothesis of convergence clubs of the per capita income inequality among the cities from Ceará. However there is no way to reject the hypothesis of conditional convergence of the income inequality in the municipalities among the same, where these would be converging to an average value of the bigger income inequality, that is, they would be turning themselves into more per capita income-concentrating municipalities.Key words: Income inequality, Gini Index, Threshold effect.


2020 ◽  
Vol 50 (2) ◽  
Author(s):  
Fan Yang ◽  
Yao Jiang ◽  
Weizhong Zeng

ABSTRACT: We used the data of the China Labor-force Dynamics Survey 2014 to examine the effects of livelihood capitals which include natural, material, human, financial, and social capitals on total household income, per capita income, agricultural income, wage income, operational income, and property income inequality among rural households in China. Results showed that different kinds of livelihood capitals have different effects on different types of rural households’ income. Specifically; (1) although, the area of cultivated land reduces agricultural income inequality, it increases per capita income inequality. (2) Forest land area enlarges per capita income inequality and total household income inequality. (3) Tractor variable reduces inequality in agricultural income and total household income. (4) While reducing the property income inequality, education variable enlarges the wage income inequality, the per capita income inequality and the total household income inequality. (5) Book variable reduces property income inequality. (6) Loan variable increases inequality in agricultural incomes. (7) Party variable reduces the agricultural income inequality. (8) Although, the internet variable increases agricultural income inequality, and property income inequality, it reduces wage income inequality, operational income inequality, per capita income, and total household income inequality.


2021 ◽  
Vol 39 (8) ◽  
Author(s):  
Bosede Ngozi Adeleye ◽  
Solomon Nathaniel ◽  
Ifeoluwa Ogunrinola ◽  
Edamisan Ikuemonisan

Aligning with the Sustainable Development Goal (SDG) 10 agenda, this paper undertakes a structural break analysis on the effects of financial deepening on income inequality in Nigeria using annual data from 1980 to 2015 and error correction approach within the framework of the autoregressive distributed lags (ARDL) model. Major findings are as follows: (1) in the long-run, financial deepening and per capita income have equalising impact on income inequality; (2) an equalising effect of financial deepening is observed at the turn of a break point; (3) surprisingly, in the short-run, financial deepening aggravates inequality, and (4) the equalising effects of these variables are robust to the choice of financial deepening variables, the different structural break points and model specifications. These results suggest that income inequality depends on financial deepening and per capita income and that not controlling for structural breaks may lead to wrong inferences when making decisions on issues related to reducing income inequality in Nigeria.


2020 ◽  
Vol 47 (8) ◽  
pp. 1043-1062
Author(s):  
Kashif Munir ◽  
Ayesha Kanwal

PurposeThe objectives of this study are threefold: firstly, to measure the impact of educational inequality on income inequality, and per capita income; secondly, to measure the impact of gender inequality in education on income inequality, per capita income and educational inequality; and lastly, to test the Kuznets inverted U-shape hypothesis between inequality in education and average year of schooling.Design/methodology/approachThe study has adopted the Marin and Psacharopoulos (1976) model of human capital in which income earned by an individual can be estimated as a function of number of year spent in schooling or education. Gini coefficient is used as a measure of income inequality, while inequality in education is measured by Gini index of educational inequality. Gender inequality in education is measured by the difference between male and female enrolment ratios as a proportion of male enrolment. The study utilizes the data of six South Asian countries, i.e. Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka from 1980 to 2010 at five-year average and employs fixed effect model (FEM) and random effect model (REM) for estimation.FindingsResult suggests that educational inequality and average year of schooling have positive and significant impact on income inequality. Primary (basic) education and tertiary (higher) education reduce income inequality, while secondary education widens income inequality. Negative relationship exists between educational inequality and per capita income. Unequal distribution of education among boys and girls at primary level increases income inequality, while reduces income inequality at tertiary level. Gender inequality in secondary and tertiary level of education reduces per capita income, while unequal distribution of education among boys and girls further increases the educational inequality. Kuznets inverted U-shape hypothesis does not hold between education expansion and educational inequality, while weak U-shape relationship exists in South Asian countries.Practical implicationsGovernment has to provide free education in poor regions and makes employment programs to reduce the income and educational inequality respectively, while to remove gender inequality in education it is necessary to build more schools especially for girls. Government has to launch different online education programs for expansion in education at all levels.Originality/valueThis study adds to the literature by analyzing whether the inequality in income increases (decreases) due to increase (decrease) in educational and gender inequality in South Asian countries. This study contributes in the existing literature by developing a measure of educational and gender inequality in education in South Asian countries.Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2020-0226.


2019 ◽  
Vol 14 (1) ◽  
pp. 9-16
Author(s):  
Nessy Fameylan Alin ◽  
Heriberta Heriberta ◽  
Etik Umiyati

The study aimed to analyze the development of the gini ratio and income per capita and to prove whether the hypothesis of Kuznets (U-inverted curve) applies in Jambi Province. To prove whether the Kuznets hypothesis applies in Jambi Province through an analysis of the relationship between per capita income and the gini ratio. The results of the study found that the growth of per capita income in Jambi Province was followed by the development of relatively fluctuating income inequality. Therefore,  the Kuznets' hypothesis is not valid in Jambi Province.


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