scholarly journals East Asian Strategies for Combating Income Inequality: A Comparative Analysis of Redistributive Fiscal Policy Efforts in China and Korea

2020 ◽  
Vol 12 (1) ◽  
pp. 92-123
Author(s):  
Katharina Menz
Keyword(s):  
Fiscal Policy ◽  
Income Inequality ◽  
Income Distribution ◽  
Low Income ◽  
National Income ◽  
Income Taxes ◽  
Social Benefits ◽  
Chinese Government ◽  
Redistributive Policy ◽  
Income Disparities

AbstractBoth China and Korea face different stages of national income inequality as well as distinctive structures in their income distribution. However, not only do levels and structures of income inequality differ in China and Korea, but their measures to tackle income inequality inherently differ. This article investigates how the Chinese and Korean governments respond to income inequality in their countries by analysing fiscal policy on both the expenditure and taxation fronts. The findings show that both China and Korea have increased their redistributive efforts in the recent past; however, Korea’s commitment to tackling income inequality is stronger than that of China. Moreover, this article finds evidence for distinctive strategies for reducing income inequality in China and Korea. Responding to large income disparities at the bottom of the income distribution spectrum, the Chinese government tackles income inequality by supporting low income earners and reducing the tax burden for low income brackets. In contrast, given Korean income inequality can be largely explained by relatively large top income shares, the redistributive policy incorporates newly introduced social benefits excluding top income earners as well as income taxes aimed at the top of the income spectrum.

World trends in the distribution of national incomes and problems of economic and social development

2018 ◽  
pp. 30-44 ◽  
Author(s):  
V. G. Klinov ◽  
A. A. Sidorov
Keyword(s):  
Quality Of Life ◽  
Fiscal Policy ◽  
Income Distribution ◽  
Social Development ◽  
National Income ◽  
Income Taxes ◽  
Global Competition ◽  
Unequal Distribution ◽  
Distribution Of Income

The authors have analyzed trends of ever-growing inequality in the distribution of income and wealth in major national and world economies over the last 40 years. The prospects of further increase in the unequal distribution of national incomes are fraught with far-reaching social, political and economic upheavals. The prospects of this kind are highly possible because of the trend to decrease the rates of income taxes (coerced by global competition) that leads to unequal national income distribution. The authors elaborate patterns of possible changes in fiscal policy that could serve for better quality of life for all strata of the population despite unequal distribution of national incomes.

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

scholarly journals Income Inequality Affects the Psychological Health of Only the People Facing Scarcity

2018 ◽  
Vol 29 (12) ◽  
pp. 1911-1921 ◽  
Author(s):  
Nicolas Sommet ◽  
Davide Morselli ◽  
Dario Spini
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Psychological Health ◽  
National Income ◽  
World Values Survey ◽  
Psychological Consequences ◽  
Cross Sectional ◽  
The People ◽  
The World ◽  
The Status

Following the status-anxiety hypothesis, the psychological consequences of income inequality should be particularly severe for economically vulnerable individuals. Oddly, however, income inequality is often found to affect vulnerable low-income and advantaged high-income groups equally. We argue that economic vulnerability is better captured by a financial-scarcity measure and hypothesize that income inequality primarily impairs the psychological health of people facing scarcity. First, repeated cross-sectional international data (from the World Values Survey: 146,034 participants; 105 country waves) revealed that the within-country effect of national income inequality on feelings of unhappiness was limited to individuals facing scarcity (≈25% of the World Values Survey population). Second, longitudinal national data (Swiss Household Panel: 14,790 participants; 15,595 municipality years) revealed that the within-life-course effect of local income inequality on psychological health problems was also limited to these individuals (< 10% of the Swiss population). Income inequality by itself may not be a problem for psychological health but, rather, may be a catalyst for the consequences of financial scarcity.

scholarly journals PERTUMBUHAN EKONOMI, KETIMPANGAN PEDAPATAN DAN DESENTRALISASI DI INDONESIA

KINERJA ◽  
2016 ◽  
Vol 20 (1) ◽  
pp. 53
Author(s):  
Lestari Agusalim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Linear Regression ◽  
Income Distribution ◽  
Gross Domestic Product ◽  
Gini Index ◽  
National Income ◽  
Secondary Data ◽  
Independent Variables ◽  
Regression Approach

AbstrakPenelitian ini bertujuan untuk mengkaji pengaruh desentralisasi dalam mendistribusikan pendapatan nasional untuk mengurangi ketimpangan pendapatan di Indonesia. Data yang digunakan adalah data sekunder, yaitu PDB sebagai representasi pendapatan nasional dan data indeks gini sebagai representasi tingkat ketimpangan pendapatan dengan rentang waktu 1978-2015. Metode analisis menggunakan regresi linear dengan pendekatan OLS dimana Indeks gini digunakan sebagai variabel dependen, dan PDB sebagai variabel independen. Selain itu, terdapat variabel independen lainnya, yaitu variabel dummy desentralisasi yang berguna untuk mengetahui pengaruh desentralisasi terhadap ketimpangan pendapatan. Hasil analisis menunjukkan bahwa dari aspek ekonomi, desentralisasi belum mampu mendistribusikan pertumbuhan ekonomi untuk memperkecil ketimpangan pendapatan masyarakat.Kata Kunci: Pertumbuhan Ekonomi, Ketimpangan Pendapatan, DesentralisasiAbstractThis research aims to analyze the effect of decentralization on national income distribution and the reduce of income Inequality in Indonesia. This research used secondary data with gross domestic product (GDP) representing national income and gini index data representing income inequality from 1978 to 2015. An OLS Linear Regression approach was employed where the gini index was the dependent variable, and the independent variables were GDP and the Dummy for decentralization implementation. The result revealed that decentralization had not been able to distribute economic growth to minimize income Inequality.Keywords: Economic Growth, Income Inequality, Decentralization

scholarly journals Income Inequality Affects the Psychological Health Only of the People Facing Scarcity

2018 ◽  
Author(s):  
Nicolas Sommet
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Psychological Health ◽  
National Income ◽  
Psychological Consequences ◽  
Cross Sectional ◽  
The People ◽  
Swiss Population ◽  
The Status ◽  
International Data

Following the “status anxiety hypothesis,” the psychological consequences of income inequality should be particularly severe for economically vulnerable individuals. However, oddly, income inequality is often found to affect vulnerable low-income and advantaged high-income groups equally. We argue that economic vulnerability is better captured by a financial scarcity measure and hypothesize that income inequality primarily impairs the psychological health of people facing scarcity. First, repeated cross-sectional international data (WVS: 146,034 participants; 105 country-waves) revealed that the within-country effect of national income inequality on feelings of unhappiness was limited to individuals facing scarcity (≈ 25% of the WVS population). Second, longitudinal national data (SHP: 14,790 participants; 15,595 municipality-years) revealed that the within-life-course effect of local income inequality on psychological health problems was also limited to these individuals (&lt; 10% of the Swiss population). Income inequality by itself may not be a problem for psychological health but rather a catalyst for the consequences of scarcity.

scholarly journals ПОДХОДЫ К ВЫБОРУ ПОЛИТИКИ НАЛОГООБЛОЖЕНИЯ В КОНТЕКСТЕ РЫНОЧНЫХ СТИМУЛОВ: ПРИМЕР АРМЕНИИ

2020 ◽  
Vol 2 (30) ◽  
pp. 4-13
Author(s):  
Ани Аветисян ◽  
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
National Income ◽  
Social Benefits ◽  
Tax Rates ◽  
State Budget ◽  
Tax System ◽  
Market Incentives ◽  
Before And After ◽  
The Impact

Features of progressive, proportional and regressive types of taxation in the framework of the national income redistribution system are considered. The paper analyzes the literature devoted to the study of the impact of tax types on market incentives. The influence of the system of deductions and social benefits on the level of income inequality of the population and revenues to the state budget is considered. The article presents the income tax system in Armenia, statistics on the level of employment by industry, wages and taxes paid before and after the reform of the transition to the proportional tax scale, which came into force on January 1, 2020. Examples of a number of countries that use differentiation of tax rates depending on marital status are given. The analysis concluded that the weakness of economic regulatory institutions is a more significant factor than the level of tax rates

scholarly journals The Resilience of Dependency Effects in Explaining Income Inequality in the Global Economy: A Cross National Analysis, 1975-1995

2002 ◽  
pp. 30-59 ◽  
Author(s):  
Linda Beer ◽  
Terry Boswell
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Foreign Investment ◽  
Global Economy ◽  
Capital Investment ◽  
National Income ◽  
Well Being ◽  
Linear Regression Models ◽  
Populations At Risk ◽  
National Analysis

The contemporary era is one of both accelerated economic globalization and rising inequality. There is an increasing awareness among both academic scholars and development professionals that globalization puts certain populations at risk. However, there has been inadequate theoretical analysis and a lack of up to date empirical studies that explain just how contemporary globalization a?ects inequality and the well being of individuals. This study explores the conditions under which TNC penetration and other globalization processes in?uence change in domestic income distribution. Its aim is to investigate whether theoretical models that have proven successful in explaining di?erences in income inequality cross-sectionally also allow for an understanding of the dynamics of income distribution during the 1980s and early 1990s, an era characterized by a dramatic acceleration of globalization. We present an analysis of change in national income distribution using linear regression models with a panel design. This study suggests that dependence on foreign investment as a development strategy, especially compared to domestic and human capital investment, may be misguided for nations concerned with equality. Net of other factors, foreign investment dependence bene?ts the elite segments of the income-earning population over the poorer eighty percent. Our analysis provides evidence of a shift in capital/labor relations brought about by globalization that has signi? cantly contributed to the rise in income inequality seen throughout the world.

Minimum Wage Effects on Household Income Distribution and the Labor Market

2017 ◽  
Author(s):  
Yue Chim Richard Wong
Keyword(s):  
Hong Kong ◽  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Minimum Wage ◽  
Low Income ◽  
Household Income ◽  
Basic Income ◽  
Wage Effects ◽  
Low Income Households

It is a mistake to believe that the minimum wage helps low-income households, the workers, and, to a lesser extent, even among the high-income households. For Hong Kong to genuinely address poverty, it is far more important to study much more comprehensively the real incidence and causes of poverty and not let politics get in the way. The provision of a basic income is a far better policy than a minimum wage. Has minimum wage made a difference in helping low-income households and reducing income inequality? What effect has it had on labor market employment and unemployment?

scholarly journals Does Income Inequality Create Excessive Threats to the Sustainable Development of Russia? Evidence from Intercountry Comparisons via Analysis of Inequality Heatmaps

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 166
Author(s):  
Mikhail Lvovitch Dorofeev
Keyword(s):  
Sustainable Development ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Regulation ◽  
National Income ◽  
Historical Analysis ◽  
Wealth Inequality ◽  
Tax Rates ◽  
The Sustainable Development ◽  
The World

The paper explored the problem of income inequality in Russia in the context of the sustainable development of Russia. The research starts from the historical analysis of income inequality dynamics in Russia. Then, we discussed the problem of the inconsistency of data, comparing different sources (official data from the Rosstat database and alternative data from the World inequality database). The purpose of this research was to assess Russian specifics of income inequality and answer the question of if the income inequality in Russia is excessively high and needs extra government regulation in order to reach the trajectory of advanced sustainable development. To this end, we made intercountry comparisons and used the method of building income inequality heatmaps basing on a dataset from the World Inequality Database. Our sample includes the per-adult equivalent of household market income distribution in 27 developed and developing countries and world regions. The result of the research was that there are many countries in the world wherein the differentiation of income exceeds Russia’s. Russian income inequality is lower than the world average, but the structure of the Russian household income distribution stands out by an extreme concentration of national income in the hands of the top 1%. We supported our results via the independent data from the Credit Suisse wealth inequality report, connecting a record level of wealth inequality in Russia with its problem of top 1% income inequality. It is recommended to gradually increase marginal tax rates on the income and wealth of the top 1% and continue developing an effective progressive tax system in Russia.

scholarly journals Differences in the Income Distribution of Households Run by Men and Women by Voivodeships

2020 ◽  
Vol 20 (1) ◽  
pp. 248-265
Author(s):  
Joanna Małgorzata Landmesser
Keyword(s):  
Income Distribution ◽  
Low Income ◽  
Household Income ◽  
Mean Values ◽  
Income Gap ◽  
Family Head ◽  
Income Distributions ◽  
Income Disparities ◽  
Decomposition Procedure ◽  
The Family

AbstractResearch background: Household income depends on its demographic composition, age and education of its members, place of residence and many other factors. In our work, we concentrate on the income distribution of Polish households.Purpose: The study aims to compare the household income distributions in Polish voivodeships, taking into account the gender of the family head. We provide evidence on the magnitude and determinants of regional differences in gender-specific income disparities.Research methodology: In order to move beyond estimation based on mean values, we apply the Residual Imputation Approach and extend the Oaxaca-Blinder decomposition procedure to different quantile points along the income distribution. To describe the differences between two income distributions we construct a counterfactual distribution and decompose the inequalities into explained and unexplained components.Results: The regional variation of the gender income gap has been explained with individual and jobrelated characteristics. There exists an important diversity in the size of the gender income gap across the Polish provinces. The results obtained for 16 voivodeships allowed us to group them into four clusters: heavily industrialized voivodeships with a large income gap, weakly industrialized with a low income gap, voivodships with large agglomerations characterized by a low gap, and medium-developed voivodeships with a large, U-shaped gap.Novelty: Our results provide novel insights into the regional dimension of the income gap.

Sign in / Sign up

Export Citation Format

Share Document