scholarly journals Changes in Consumption Patterns and Employment under Alternative Income Distributions in Pakistan

1985 ◽  
Vol 24 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Aftab Ahmad Cheema ◽  
Muhammad Hussain Malik

The demand and employment effects of alternative distributions of the existing as well as the additional income generated through growth of the economy have been analysed in this paper. The results show that income redistribution in favour of the low-income households would increase the demand for basic necessities like wheat, pulses, edible oils, etc., while the demand for certain other commodities would decrease. The results also show that the consumption levels of the poor households can be significantly increased with income redistribution without much adverse effects on the rich. The employment effects are found to be positive and substantial.

2021 ◽  
Vol 15 ◽  
pp. 183449092110257
Author(s):  
Qiong Li ◽  
Chen Deng ◽  
Bin Zuo ◽  
Xiaobin Zhang

This study explored whether vertical position affects social categorization of the rich and the poor. Experiment 1 used high- and low-income occupations as stimuli, and found participants categorized high-income occupations faster when they were presented in the top vertical position compared to the bottom vertical position. In Experiment 2, participants responded using either the “up” or “down” key to categorize high- and low-income occupations, and responded faster to high-income occupations with the “up” key and low-income occupations with the “down” key. In Experiment 3, names identified as belonging to either rich or poor individuals were presented at the top or bottom of a screen, and the results were the same as in Experiments 1 and 2. These findings suggest that social categorization based on wealth involved perceptual simulations of vertical position, and that vertical position affects the social categorization of the rich and the poor.


2017 ◽  
Author(s):  
Felix Cheung

The widening income gap between the rich and the poor has important social implications. Governmental-level income redistribution through tax and welfare policies presents an opportunity to reduce income inequality and its negative consequences. The current longitudinal studies examined whether within-region changes in income redistribution over time relate to life satisfaction. Moreover, I examined potential moderators of this relationship to test the strong versus weak hypotheses of income redistribution. The strong hypothesis posits that income redistribution is beneficial to most. The weak hypothesis posits that income redistribution is beneficial to some and damaging to others. Using a nationally representative sample of 57,932 German respondents from 16 German states across 30 years (Study 1) and a sample of 112,876 respondents from 33 countries across 24 years (Study 2), I found that within-state and within-nation changes in income redistribution over time were associated with life satisfaction. The models predicted that a 10% reduction in Gini through income redistribution in Germany increased life satisfaction to the same extent as an 37% increase in annual income (Study 1), and a 5% reduction in Gini through income redistribution increased life satisfaction to the same extent as a 11% increase in GDP (Study 2). These associations were positive across individual, national, and cultural characteristics. Increases in income redistribution predicted greater satisfaction for tax-payers and welfare-receivers, for liberals and conservatives, and for the poor and the rich. These findings support the strong hypothesis of income redistribution and suggest that redistribution policies may play an important role in societal well-being.


Author(s):  
Yue Chim Richard Wong

Why have the welfare states of the rich countries of the West, which transfer on average nearly a quarter of GDP from the rich to the poor, failed to alleviate poverty? And why has inequality widened in recent decades in these countries? The liberals in these countries—intellectuals and politicians—continue to argue for more public transfers. But if income redistribution could solve poverty, should it not have done so by now? The illusion that poverty can be solved through income redistribution is the key reason why so many rich economies have become saddled with public debt: in some countries it approaches 100% and even 200% of GDP.


2020 ◽  
Vol 7 (8) ◽  
pp. 191232
Author(s):  
Bradley D. Mattan ◽  
Jasmin Cloutier

Although high status is often considered a desirable quality, this may not always be the case. Different factors may moderate the value of high status along a dimension such as wealth (e.g. gender, perceiver income/education). For example, studies suggest men may value wealth and control over resources more than women. This may be especially true for high-income men who already have control over substantial resources. Other work suggests that low-income men and women may have different experiences in educational contexts compared to their richer peers who dominate norms at higher levels of education. These experiences may potentially lead to different attitudes about the wealthy among low-income men and women. In this registered report, we proposed two key predictions based on our review of the literature and analyses of pilot data from the Attitudes, Identities and Individual Differences (AIID) study ( n = 767): (H1) increasing income will be associated with increased pro-wealthy bias for men more than for women and (H2) income will also moderate the effect of education on implicit pro-wealthy bias, depending on gender. Overall, men showed greater implicit pro-wealthy bias than did women. However, neither of our hypotheses that income would moderate the effects of gender on implicit pro-wealthy bias were supported. These findings suggest implicit pro-wealthy bias among men and are discussed in the context of exploratory analyses of gender differences in self-reported beliefs and attitudes about the rich and the poor.


Author(s):  
Habib Ahmed ◽  
Ak Md Hasnol Alwee Pg Md Salleh

Purpose This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with contemporary notions of financial planning, financial inclusion and financial literacy that caters to the short-term and long-term financial goals of the poor. Design/methodology/approach Being a conceptual article, an inclusive IFP framework is described, analyzed and developed by integrating modern notions of financial inclusion, financial planning and financial literacy with the concepts of zakat and awqaf. Findings Using the notion of a hierarchy of needs and a financial planning model, an inclusive IFP framework that can be used by the poor is outlined. The complementary role of the non-poor households who provide funds for zakat and awqaf is also identified. Research limitations/implications The applicability of an inclusive IFP would require Islamic financial instruments and products, institutional development and existence of a social planner who can integrate zakat, awqaf and financial planning to serve the financial needs of the poor. Social implications Application of an inclusive IFP that can mitigate poverty would necessitate integrating financial planning skills and knowledge with traditional institutions of zakat and awqaf to provide holistic financial advice and services to the poor households. Originality/value Discussion of financial planning in financial inclusion literature is scant. The paper explores and offers a novel approach of poverty mitigation by utilizing the full spectrum of IFP that considers the financial needs and allows for the creation of a personalized financial plan for low-income households.


2016 ◽  
pp. 145-159
Author(s):  
Paweł Ulman

The problem of low income households in Poland is quite common. As it was shown by Polish CSO extreme poverty (subsistence minimum) affects more than 7 percent of people in Poland, and at the level of the statutory criterion of poverty, nearly 13 percent (average data from the 2013). The interesting research problem is to identify the sources of widely understood income (cash and in kind) and their importance to meet the current needs of households with low incomes in connection with a wide range of extreme poverty arising from low income of households. The aim of the work is to present the results of statisti-cal analysis of the level of income from various sources affecting the ability to satisfy the current needs of the poor households. So it is going to be shown how these households cope with basic needs. The statistical analysis are made on the basis of data published by the CSO and the data from the study “Social Diagnosis”.


2018 ◽  
Vol 5 (2) ◽  
pp. 233-245
Author(s):  
Md Mostafizur Rahman

Abstract Social protection programmes in Bangladesh aimed at reducing the vulnerability of the poor has become exceptionally challenging because of high exposure to weak institutional governance, and frequent natural disasters. As a matter of fact, both the coverage and the types of social protection programmes have been expanded to support the extremely poor households in Bangladesh over the last decade. However, the boundaries between ‘protection approach’ associated with risk reduction and ‘promotion approach’ regarded as the pathways to raise incomes and employment opportunities of the poor have remained understated in policy discourse. This paper addresses how an Interpretivist methodology can be used in exploring the current complexities of social protection programmes in extremely poor households with reference to disaster-affected areas in southwest coastal Bangladesh, giving a particular attention to the interpretation of the beneficiaries as well as service providers. This paper employs an interpretative framework for collecting qualitative data because of its ability to make sense of the complex situations of social protection programmes by generating multicontextual information provided by the beneficiaries of social protection programmes. During the initial fieldwork of the research, the research participants pointed out that there exist strong prevalence and dominance of local politics considered as ‘underlying issues’ in the delivering process of social protection programmes, which is further associated with power-relation between the rich and poor class of the society. However, the current policy discourses of social protection programmes have overlooked those highly pertinent phenomena both in local and national context. This paper argues that the aspects of availability, accessibility and utilisation of social protection programmes is not straightforward as each aspect is further associated with social relations and complex social understanding. An interpretive methodology along with illustrative data collection and analysis techniques can become effective to explore those complex societal understanding related with social protection programmes. Finally, within the adopted interpretive framework, the integrated view related with availability, accessibility and utilisation aspects of social protection programmes need to be addressed while creating a sense of meaning and understanding of overall situation of social protection programmes.


Author(s):  
Mahesh Raj Dahal

This paper attempts to analyze the positive and negative externality effects of community forest management with the help of household level monetary value of benefits and costs derived from the sixteen community forest user groups of households in Arun River Valley. Monetary benefits of major types of forest products and total costs of forest use and management were calculated classifying into labour cost, transaction cost and membership fees to derive monetary estimation for the purpose of externality analysis. With the help of summary statistics of calculated gross benefits and costs including net benefits and the benefit-cost ratios (B/C) the externality effects of use and management of community forest were examined. The results of externality analysis shows that the poor income households are completely failed to internalize the benefit from CF as per the total gross cost per household incurred equivalent by negative net benefits (-4.0 percent). The middle income households are being able to internalize by equalize both of gross benefit (37.0 percent and the total gross cost (37.0 percent) from CF. The rich income households are being able to externalize the total gross cost on the poor income households to gain disproportionate net benefits (4.0) from CF. The benefit-cost ratios (B/C) for the poor (0.81 < 1), medium (1=1) and rich households (1.09 > 1) also have justified that the rich households are getting higher percentage of net benefits and paying less percentage of gross cost without providing any compensation to the poor households. The middle income households appeared in a position of no more gain nor more loss or zero net benefit. Since even a benefit loser, the poor households should take part in overall total gross cost of forest use, operation and management. Thus, the net externality effect of CF in terms of benefits accrued (positive externality) minus total gross cost incurred (negative externality) i.e. net benefit is negatively related to the poor income households and positively related to richer households in the study area. DOI: http://dx.doi.org/10.3126/ttp.v5i0.1955 The Third Pole, Vol. 5-7, PP 62-69:2007


2011 ◽  
Vol 105 (2) ◽  
pp. 316-336 ◽  
Author(s):  
NOAM LUPU ◽  
JONAS PONTUSSON

Against the current consensus among comparative political economists, we argue that inequality matters for redistributive politics in advanced capitalist societies, but it is the structure of inequality, not the level of inequality, that matters. Our theory posits that middle-income voters will be inclined to ally with low-income voters and support redistributive policies when the distance between the middle and the poor is small relative to the distance between the middle and the rich. We test this proposition with data from 15 to 18 advanced democracies and find that both redistribution and nonelderly social spending increase as the dispersion of earnings in the upper half of the distribution increases relative to the dispersion of earnings in the lower half of the distribution. In addition, we present survey evidence on preferences for redistribution among middle-income voters that is consistent with our theory and regression results indicating that left parties are more likely to participate in government when the structure of inequality is characterized by skew.


Author(s):  
Anand Sahasranaman ◽  
Henrik Jeldtoft Jensen

AbstractIt is well known that inequality has been rising in India in the recent past, but the assumption has been that while the rich benefit more than proportionally from economic growth, the poor are also better off than before. Our modelled outcomes (using the RGBM framework) cast doubt on this proposition. We find that the income share dynamics are consistent with a negative reallocation since the early 2000s, i.e., the Indian income distribution possibly entered a regime of perverse redistribution of resources from the poor to the rich. Our model suggests that the historically low-income shares of the bottom decile (~ 1%) and bottom percentile (~ 0.03%) are possibly due to a decline in real incomes in the 2000s. We find qualified support for these theoretical predictions using income distribution data. We characterize these findings in the context of increasing informalization of the workforce in the formal manufacturing and service sectors as well as the growing economic insecurity of the agricultural workforce in India. Significant structural changes will be required to address this phenomenon.


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