scholarly journals How to get closer together: impacts of income inequality and policy responses

2011 ◽  
Vol 7 (4) ◽  
Author(s):  
Paul Barber

Professors Richard Wilkinson and Kate Pickett in The Spirit Level (2010) have documented the relationship between income inequality and health and social dysfunction across 25 developed countries including New Zealand, and summarised their findings in their Index of Health and Social Problems (IHSP). The results of this work show that New Zealand is performing poorly in comparison to countries with lower levels of income inequality. Their research has prompted debate in New Zealand (see Policy Quarterly issues of May and August 2011), and an example of the influence of their work can be seen in the references and measures chosen for the Treasury’s Living Standards Framework released in May 2011.   

2018 ◽  
Vol 10 (5) ◽  
pp. 242
Author(s):  
Mohamed Bouincha ◽  
Mohamed Karim

A long time ago, economic growth was the main indicator of countries’ economic health. However, since the 1970s, the analysis of the relationship between economic growth and other economic phenomena such as inequality has begun to grow (Sundrum, 1974). Much of the literature on the link between economic growth and income inequality is based on Kuznets revolutionary theory. The purpose of our article is to suspect the causality relationship between growth and inequality. To do this, we used data from 189 countries for the period between 1990 and 2015. We estimated a global model and three other of each category of countries in terms of development. In the global model, economic growth is insignificant even if its sign is positive. The same result appears in the developing country model and the moderately developed countries one. However, in the developed countries model, economic growth is negatively and statistically related to inequality. The Kuznets curve is approved in our study only when using human development indicator in the place of growth. Growth explain inequality’s movement in our study only in the model of developed countries and its coefficient is negative.


2021 ◽  
Author(s):  
Yusuf Ekrem Akbas ◽  
Fuat Lebe

Abstract The primary objective of this study is to examine the relationship between carbon dioxide (CO2) emissions, energy consumption, income inequality, and poverty within the framework of the Environmental Kuznets Curve (EKC) in 14 developed and ten developing countries over the period 2000–2018. We employed the Fourier unit root test and Dynamic Seemingly Unrelated Regression (DSUR) estimator to analyze the relationship between these variables. The results show that in developing countries, income inequality, poverty, and energy consumption positively affect CO2 emission. In contrast, in developed countries, there is no significant relationship between these variables. Moreover, we found out that the EKC hypothesis, which suggests an inverted U-shaped relationship between per capita income and CO2 emissions, is valid in developed countries and invalid in developing countries. We determined that the turning points obtained from regression analysis are outside of the sample period in five developing countries (Argentina, Armenia, Kazakhstan, Panama, and Uruguay). These results show that income inequality and poverty can indirectly affect environmental quality by energy consumption in developing countries.


Author(s):  
Jinjing Li ◽  
Yogi Vidyattama ◽  
Hai Anh La ◽  
Riyana Miranti ◽  
Denisa M. Sologon

AbstractThis paper undertakes a near real-time analysis of the income distribution effects of the Covid-19 crisis in Australia to understand the ongoing changes in the income distribution as well as the impact of policy responses. By semi-parametrically combining incomplete observed data from three different sources–the monthly Longitudinal Labour Force Survey, the Survey of Income and Housing and administrative payroll data–we estimate the impact of Covid-19 on the Australian income distribution and decompose its impact into the income shock effect and the policy effect between February and June 2020, covering the immediate periods before and after the initial Covid-19 outbreak. Our results suggest that, despite growth in unemployment, the Gini coefficient of equivalised household disposable income dropped by more than 0.02 points between February and June 2020. This reduction is due to the additional wage subsidies and welfare supports offered as part of the policy response, offsetting the increase in income inequality from the income shock effect. The results shows the effectiveness of temporary policy measures both in maintaining living standards and avoiding increases in income inequality. However, the heavy reliance on the support measures shown in the modelling raises the possibility that the changes in the income distribution may be reversed, or even that inequality and living standards could substantially worsen once the measures are withdrawn.


2021 ◽  
Author(s):  
Huihui Cao

<p><b>Massive Open Online Courses (MOOCs) are free online courses available for anyone to enrol in and are aimed at unlimited participation (Siemens, 2013). One aim of MOOCs is to increase the accessibility of tertiary education to people who would not usually have access to it.</b></p> <p>The past decade has seen a rapid development of these courses with a stream of research focused on this new teaching innovation. While there has been research on how MOOCs are developed and why students enrol in MOOCs, there has been relatively less research focused on the accessibility to students in different countries, including those that could be considered less economically developed.</p> <p>This study used a mixed-methods research approach to examine the relationship between MOOCs and the education access of these courses for students, internationally. Quantitative and qualitative data were gathered from both the students' and lecturers' perspectives of two MOOCs taught in a New Zealand university. Quantitative data on the students' demographics and motivations were provided by the EdX platform. These data indicated that most students enrolled in the two MOOCs were from developed countries. Correlation analysis and multivariate regression were used to examine the relationship between students' participation rate and development level in the country where the students were studying. The statistical results indicate that students from developed countries were more likely to enrol in the MOOCs than students from developing countries. </p> <p>Given that MOOCs aim to engage diverse groups of students globally, qualitative data in the form of interviews were used to address the following questions: What are the lecturers' motivations to teach these MOOCs; which groups of students did the lecturers target in their teaching; and how did the lecturers adapt the courses to cater for the learners' diversity? The lecturers anticipated that most MOOCs students were from developed countries and had tertiary degrees. Although the lecturers applied several approaches to engage diverse groups of students, their demographics were largely aligned with the lecturers' expectations. The role of the MOOCs in increasing accessibility to higher education for students who were traditionally excluded was limited.</p>


SURG Journal ◽  
2017 ◽  
Vol 9 (1) ◽  
pp. 14-26
Author(s):  
Tara Sutton

Income inequality has risen steadily in Canada over the last three decades, and particularly in Ontario, where it has grown at a faster rate. While the public response to this growth remains unclear, policy responses to address the issue have largely failed. To date, the literature remains divided as to the nature of the relationship between income inequality and support for redistributive policies such as welfare spending. This article argues, however, that where a relationship exists between income inequality and public support for welfare spending, it is a negative one. This negative relationship is in part due to perceptions of deservingness and factors explained by institutionalism. Even if support for governmental action to address income inequality is considerable both in Ontario and in the rest of Canada, support for governmental welfare spending is low. These findings point toward a public that is largely unresponsive to the problem of growing income inequality in Ontario. The results have implications for the development of policies to address inequality effectively, both in Ontario and in the rest of Canada.


1999 ◽  
Vol 32 (3) ◽  
pp. 363-395 ◽  
Author(s):  
VINCENT A. MAHLER ◽  
DAVID K. JESUIT ◽  
DOUGLAS D. ROSCOE

This article explores the relationship between international integration and domestic inequality in the developed countries in the mid-1980s and early 1990s. The analysis examines two major modes of integration, trade and direct investment, disaggregating each by economic sector and distinguishing between imports and exports, and inbound and outbound flows and stocks. In measuring income inequality, extensive use is made of micro-data sets that have recently become available through the Luxembourg Income Study (LIS), which provides much more detailed and comparable data on income inequality than has heretofore been the case. In particular, LIS data can be aggregated at the level of economic sector, and permit the comparison of pre- and post-government income. The study finds few significant relationships between either trade or investment and sectoral income distribution. The overall conclusion is that economic globalization is not a critically important factor in explaining recent trends in income inequality in the Western world.


2021 ◽  
Author(s):  
Huihui Cao

<p><b>Massive Open Online Courses (MOOCs) are free online courses available for anyone to enrol in and are aimed at unlimited participation (Siemens, 2013). One aim of MOOCs is to increase the accessibility of tertiary education to people who would not usually have access to it.</b></p> <p>The past decade has seen a rapid development of these courses with a stream of research focused on this new teaching innovation. While there has been research on how MOOCs are developed and why students enrol in MOOCs, there has been relatively less research focused on the accessibility to students in different countries, including those that could be considered less economically developed.</p> <p>This study used a mixed-methods research approach to examine the relationship between MOOCs and the education access of these courses for students, internationally. Quantitative and qualitative data were gathered from both the students' and lecturers' perspectives of two MOOCs taught in a New Zealand university. Quantitative data on the students' demographics and motivations were provided by the EdX platform. These data indicated that most students enrolled in the two MOOCs were from developed countries. Correlation analysis and multivariate regression were used to examine the relationship between students' participation rate and development level in the country where the students were studying. The statistical results indicate that students from developed countries were more likely to enrol in the MOOCs than students from developing countries. </p> <p>Given that MOOCs aim to engage diverse groups of students globally, qualitative data in the form of interviews were used to address the following questions: What are the lecturers' motivations to teach these MOOCs; which groups of students did the lecturers target in their teaching; and how did the lecturers adapt the courses to cater for the learners' diversity? The lecturers anticipated that most MOOCs students were from developed countries and had tertiary degrees. Although the lecturers applied several approaches to engage diverse groups of students, their demographics were largely aligned with the lecturers' expectations. The role of the MOOCs in increasing accessibility to higher education for students who were traditionally excluded was limited.</p>


Author(s):  
VLADIMIR D. MILOVIDOV ◽  

The article examines the problem of inequality in the context of the COVID-19 pandemic. The pandemic has significantly changed the usual criteria for assessing inequality, revealing the significant vulnerability of citizens living mainly in highly developed countries of the world. These countries have modern health care and welfare system with lower poverty levels than one in low-income developing countries. Based on the methodological approaches of the theory of social choice and the theory of economic welfare, the author shows the transformation of views on inequality and notes a decrease in economic factors of inequality with a significant increase in non-economic, subjective, behavioral factors. The article analyzes the relationship between the number of COVID-19 cases in different countries and indicators of economic growth, globalization, health security of citizens, and those characterizing people’s living standards. The author analyses data for individual countries and regions of the world.


2018 ◽  
Vol 45 (1) ◽  
pp. 2-13 ◽  
Author(s):  
Wai Weng Yap ◽  
Tamat Sarmidi ◽  
Abu Hassan Shaari ◽  
Fathin Faizah Said

Purpose The purpose of this paper is to investigate the nonlinear relationship between shadow economy and income inequality and determine whether the size of shadow economy can influence the level of income inequality. Design/methodology/approach Both parametric (panel OLS) and nonparametric/semiparametric regression suggested by Robinson (1988) will be used to capture the dynamic nonlinear relationship between these variables using unbalanced panel data of 154 countries from 2000 to 2007. Additionally, the relationship between income inequality and shadow economy on both developed and developing countries will be analyzed and compared. Findings First, semiparametric analysis and nonparametric analysis are significantly different than parametric analysis and better in nonlinear analysis between income inequality and shadow economy. Second, income inequality and shadow economy resemble an inverted-N relationship. Third, the relationship between income inequality and shadow economy is different in developed countries (OECD countries) and developing countries, where OECD countries have similar inverted-N relationship as before. However, for developing countries, income inequality and shadow economy show an inverted-U relationship, similar to the original Kuznets hypothesis. Practical implications This study suggests that there is a possible trade-off between income inequality and shadow economy and helps policy makers in solving both problems effectively. Originality/value Despite the growing importance of income inequality and shadow economy, literature linking the two variables is scarce. To the best of the authors’ knowledge, there is no literature that nonlinearly links these two variables. Furthermore, the dynamics of the relationship between these two variables in developed countries and developing countries will be explored as well.


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