scholarly journals Corrigendum: Correction to Zarkovic Rakic et al. (2019)

2020 ◽  
Vol 65 (224) ◽  
pp. 129-129
Author(s):  
E Editorial
Keyword(s):  
Comparative Analysis ◽  
Income Inequality ◽  
Transition Economies ◽  
Gini Coefficient ◽  
Market Income ◽  
Social Transfers ◽  
Redistributive Effects ◽  
Font Color

Some terminological inaccuracies have been identified in the article ?Income inequality in transition economies: a comparative analysis of Croatia, Serbia and Slovenia? by Jelena Zarkovic Rakic, Gorana Krstic, Nermin Oruc and Will Bartlett which appeared in Economic Annals, 2019, LXIV(223): 39-60. https:// doi.org/10.2298/EKA1923039Z. On pp. 43-45 of the article, the term ?market income? should read ?post-tax income? and the term ?tax and benefit? on p. 44- 45 should read ?benefit?. The Legend for Figure 1 on p 44 ?Redistributive effects of social transfers? in place of ?Redistributive effects reducing market inequality?. The Note should read ?? the post-tax Gini coefficient for total equivalised income before social transfers (including pensions) [ilc_di12b] ?in place of ?...the marketgenerated Gini coefficient for total equivalised income?. The authors are grateful to Nikola Altiparmakov for bringing their attention to these details.<br><br><font color="red"><b> Link to the corrected article <u><a href="http://dx.doi.org/10.2298/EKA1923039Z">10.2298/EKA1923039Z</a></b></u>

scholarly journals Income inequality in transition economies: A comparative analysis of Croatia, Serbia and Slovenia

2019 ◽  
Vol 64 (223) ◽  
pp. 39-60
Author(s):  
Jelena Zarkovic-Rakic ◽  
Gorana Krstic ◽  
Nermin Oruc ◽  
Will Bartlett
Keyword(s):  
Comparative Analysis ◽  
Income Inequality ◽  
Welfare State ◽  
Transition Economies ◽  
Labour Markets ◽  
Education Systems ◽  
The Alps ◽  
Transition Paths ◽  
The Relationship ◽  
Font Color

This paper investigates the relationship between income inequality and different welfare state trajectories that three countries of the former Yugoslavia ?south of the Alps? have taken over the three decades since the breakup of the country in 1990. It is remarkable that three countries emerging from a common (socialist) system have experienced diametrically opposing outcomes regarding inequality. Slovenia has one of the lowest levels of income inequality in Europe, Croatia an average level of inequality, and Serbia one of the highest levels. The paper first examines the extent and nature of income inequality in the three countries before examining the determining causes of inequality, rooted in the evaluation of labour markets, education systems, and tax-benefit systems. It concludes that the divergent transition paths have created the different inequality outcomes observed in the three countries. <br><br><font color="red"><b> This article has been corrected. Link to the correction <u><a href="http://dx.doi.org/10.2298/EKA2024129E">10.2298/EKA2024129E</a><u></b></font>

scholarly journals Skill-Biased Technological Change and Inequality in the U.S.

2020 ◽  
pp. 91-107
Author(s):  
Ana Ferreira
Keyword(s):  
Income Inequality ◽  
Technological Change ◽  
Incomplete Markets ◽  
Gini Coefficient ◽  
Income Tax ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Biased Technological Change ◽  
Household Heterogeneity ◽  
The U.S

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%.

scholarly journals Fair and Inclusive Markets

2021 ◽  
Vol 21 (29) ◽  
Author(s):  
Philippe Aghion ◽  
Reda Cherif ◽  
Fuad Hasanov
Keyword(s):  
Income Inequality ◽  
Empirical Evidence ◽  
Poverty Alleviation ◽  
Policy Options ◽  
Growth Opportunities ◽  
Market Structures ◽  
Sustained Growth ◽  
Market Income ◽  
High Level ◽  
Export Industries

We show empirical evidence that there may not be a tradeoff between market income inequality and high sustained growth, which is key for poverty alleviation. We argue that the economies that achieved high sustained growth and low market income inequality are characterized by dynamism—a drive toward sophisticated export industries, innovation, and creative destruction and a high level of competition. What a country produces and how much it competes domestically and internationally are important for achieving fair and inclusive markets. We explore policy options to steer industrial and market structures toward providing growth opportunities for both workers and firms.

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

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

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

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.

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.

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

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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