scholarly journals Capitalist Systems and Income Inequality

2020 ◽  
Author(s):  
Marco Ranaldi ◽  
Branko Milanovic
Keyword(s):  
Income Inequality ◽  
Labor Income ◽  
Working Paper ◽  
The Past ◽  
The Rich ◽  
The Relationship

The paper investigates the relationship betweencapitalism systems and their levels of income andcompositional inequality (how the composition ofincome between capital and labor varies along incomedistribution). Capitalism may be seen to range betweenClassical Capitalism, where the rich have only capitalincome, and the rest have only labor income, andLiberal Capitalism, where many people receive bothcapital and labor incomes. Using a new methodologyand data from 47 countries over the past 25 years, weshow that higher compositional inequality is associatedwith higher inter-personal inequality. Nordic countriesare exceptional because they combine highcompositional inequality with low inter-personalinequality. We speculate on the emergence ofhomoploutic societies where income composition maybe the same for all, but Gini inequality nonethelesshigh, and introduce a new taxonomy of capitalistsocieties. (Stone Center Working Paper Series) Revised

scholarly journals Capitalist Systems and Income Inequality

2020 ◽  
Author(s):  
Marco Ranaldi ◽  
Branko Milanovic
Keyword(s):  
Income Inequality ◽  
Labor Income ◽  
Working Paper ◽  
The Past ◽  
The Rich ◽  
The Relationship

The paper investigates the relationship betweencapitalism systems and their levels of income andcompositional inequality (how the composition ofincome between capital and labor varies along incomedistribution). Capitalism may be seen to range betweenClassical Capitalism, where the rich have only capitalincome, and the rest have only labor income, andLiberal Capitalism, where many people receive bothcapital and labor incomes. Using a new methodologyand data from 47 countries over the past 25 years, weshow that higher compositional inequality is associatedwith higher inter-personal inequality. Nordic countriesare exceptional because they combine highcompositional inequality with low inter-personalinequality. We speculate on the emergence ofhomoploutic societies where income composition maybe the same for all, but Gini inequality nonethelesshigh, and introduce a new taxonomy of capitalistsocieties. (Stone Center Working Paper Series)

scholarly journals Assortative Mating and Labor Income Inequality: Evidence from Fifty Years of Coupling in the U.S.

2020 ◽  
Author(s):  
Nishant Yonzan
Keyword(s):  
Income Inequality ◽  
Assortative Mating ◽  
Sharp Increase ◽  
Labor Income ◽  
Reference Distribution ◽  
Working Paper ◽  
The Past ◽  
Past Half Century ◽  
Past Half ◽  
The U.S

Labor income inequality among couples has increased by 33 percent in the U.S. over the past half-century. Over the same period, the correlation of labor income within couples has also increased sharply. Is this increase in sorting over labor income a cause for the rise of labor income inequality among couples? Using the March supplement of the CPS, first, I find that there has been a sharp increase in positive sorting over labor income in the U.S. in the 1970-2018 period. The top decile of men’s earners married to the top decile of women’s earners has doubled from 10.6 percent in 1970 to 23.3 percent in 2018. Second, I use a bounded copula framework as a reference distribution to track the relative changes in labor income inequality among couples. Using this framework, I find that positive sorting over labor income did play a role in increasing labor income inequality among couples in the 1970-1990 period; however, I find little evidence to suggest that this relationship existed in the 1990-2018 period. (Stone Center on Socio-Economic Inequality Working Paper)

Income Inequality and Economic Development

2010 ◽  
Author(s):  
Matthew McKeever
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Industrial Society ◽  
Considerable Debate ◽  
The Subject ◽  
The Rich ◽  
The Government ◽  
The Relationship

The nature of the relationship between economic development and income inequality has long been the subject of considerable debate. Economic growth has very different effects on poverty, depending on a country’s level of income inequality. In high inequality countries, economic growth that raises the overall level of income disproportionately tends to benefit the rich, whereas policies that encourage economic growth while reducing income inequality will greatly accelerate the achievement of poverty reduction goals. Thus, understanding how income inequality and economic development are linked is important for establishing economic growth policies that reduce poverty. The literature on the economic development–income inequality nexus in industrial society places emphasis on the causes of current social inequality. The central and most cited paper in the literature is S. Kuznets’s “Economic Growth and Income Inequality” (1955), which proposed an inverted U-shaped relationship between development and inequality over the course of industrialization. Some scholars have tried to build upon Kuznets’s theory by focusing on his claim that income inequality is a function of the nature of regulations put on the market. Other studies deal with the importance of studying the relationship between democracy and inequality, the effect of the nature of the government on shaping inequality compared to industrialization, and the implications of globalization for income inequality. This overview of the literature shows that there is little true consensus on the relationship between inequality and development and highlights two major areas for improvement: measurement and data quality.

scholarly journals Can Reducing Income Inequality Decouple Economic Growth from CO2 Emissions?

2018 ◽  
Vol 4 ◽  
pp. 237802311877271 ◽  
Author(s):  
Julius Alexander McGee ◽  
Patrick Trent Greiner
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
National Income ◽  
Recent Period ◽  
The Past ◽  
Socioeconomic Drivers ◽  
Advance Research ◽  
Developed Nations ◽  
The Relationship ◽  
Distribution Of Income

In the past two decades, income inequality has steadily increased in most developed nations. During this same period, the growth rate of CO2 emissions has declined in many developed nations, cumulating to a recent period of decoupling between economic growth and CO2 emissions. The aim of the present study is to advance research on socioeconomic drivers of CO2 emissions by assessing how the distribution of income affects the relationship between economic growth and CO2 emissions. The authors find that from 1985 to 2011, rising income inequality leads to a tighter coupling between economic growth and CO2 emissions in developed nations. Additionally, the authors find that increases in the top 20 percent of income earners’ share of national income have resulted in a larger association between economic growth and CO2 emissions, while increases in the bottom 20 percent of income earners’ share of national income reduced the association between economic growth and CO2 emissions.

scholarly journals A new approach to social inequality: inequality of income and wealth in South Korea

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Kwang-Yeong Shin
Keyword(s):  
Income Inequality ◽  
South Korea ◽  
Social Inequality ◽  
Employment Status ◽  
Wealth Inequality ◽  
New Approach ◽  
Income Groups ◽  
The Rich ◽  
The Relationship ◽  
Significant Factors

Abstract This paper attempts to provide a new approach to social inequality, focusing on income and wealth inequality and the relationship between income inequality and wealth inequality. With an analysis of the data linking survey data with administrative data in South Korea, this paper reports that wealth, employment status, family size, and education are significant contributors to income inequality. However, income and loans are the two most significant factors contributing to wealth inequality. Income derived from economic activity and loans based on the leverage in the financial market have exacerbated wealth inequality as higher income groups tend to utilize more loans in the financialized economy, widening the gap between the rich and the poor. Wealth inequality has different dynamics from income inequality, mediated through leverage in South Korea.

Labor income inequalities and tourism development in Argentina: A regional approach

2019 ◽  
Vol 25 (8) ◽  
pp. 1265-1285
Author(s):  
Natalia Porto ◽  
Natalia Espinola
Keyword(s):  
Income Inequality ◽  
Tourism Development ◽  
Labor Income ◽  
Spatial Error Model ◽  
Spatial Error ◽  
Equal Distribution ◽  
Income Inequalities ◽  
Resource Endowment ◽  
Water Based ◽  
The Relationship

This study aims to explore the regional wages inequalities and its relationship with the development of tourism and amenities endowment. We estimate a spatial error model for 29 metropolitan agglomerations in Argentina during the period 2004–2015. Four indices of touristic amenities that interact with tourism employment—as a proxy for tourism development—in labor income inequality estimations are used. Results show that the labor income distribution depends on the natural resources endowment, as well as the development of tourism in the agglomerates. A more equal distribution of labor income is observed in the agglomerates that have a greater presence of water-based resources, while the relationship is inverse in agglomerates with a greater presence of land-based resources. Also, the tourism employment has an unequal effect on labor income. In conclusion, the study shows the relevance of including aspects of regional development and resource endowment in the analysis of income inequality.

scholarly journals Labor’s Declining Share of Income and Rising Inequality

2011 ◽  
pp. 1-6 ◽  
Author(s):  
Margaret Jacobson ◽  
Filippo Occhino
Keyword(s):  
United States ◽  
Income Inequality ◽  
The United States ◽  
Labor Income ◽  
Total Income ◽  
Labor Share ◽  
The Past ◽  
Future Path ◽  
A Share

Labor income has been declining as a share of total income earned in the United States for the past three decades. We look at the past effect of the labor share decline on income inequality, and we study the likely future path of the labor share and its implications for inequality.

scholarly journals Growing Apart: The Evolution of Income vs. Wealth Inequality

2015 ◽  
Vol 12 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Michael Cragg ◽  
Rand Ghayad
Keyword(s):  
Income Inequality ◽  
Wealth Inequality ◽  
Income Taxes ◽  
Labor Income ◽  
Senior Executives ◽  
Distribution Of Wealth ◽  
The Past ◽  
Economic Trends ◽  
The Media ◽  
Dominant Paradigm

AbstractThe gap between the richest Americans and the rest of the nation has changed dramatically over the past three decades – becoming one of the most challenging political and economic trends for the nation. For decades prior to that, the distribution of wealth and income had been relatively stable, so much that a central problem posed in the economics literature was to explain this stability. But beginning in the early 1980s, inequality began to grow rapidly and has recently been attracting substantial attention from policymakers and researchers reflecting a widespread concern that reflecting a widespread concern that growing labor incomes of senior executives, finance professionals, and successful entrepreneurs is entailing large economic costs to society. The dominant paradigm in the media and Washington is that inequality is purely a matter of divergence in earned (labor) income inequality which can be ameliorated by making earned income taxes more progressive and shifting spending to help the poorer. However, this is not the story: wealth inequality, as it turns out, is much worse. This warrants emphasis for a variety of reasons: (1) a growing body of research that suggests that in the head-on comparison it is wealth inequality, rather than income inequality or poverty that has a negative, statistically significant effect on economic growth.

scholarly journals Income Inequality, Social Mobility, and Electoral Participation in the US Counties: Revisiting the Inequality-Participation Nexus

2021 ◽  
pp. 003232172110594
Author(s):  
Dongkyu Kim ◽  
Mi-son Kim ◽  
Sang-Jic Lee
Keyword(s):  
Income Inequality ◽  
Social Mobility ◽  
Congressional Election ◽  
Electoral Participation ◽  
Political Inequality ◽  
The Us ◽  
Us Counties ◽  
The Rich ◽  
The Impact ◽  
The Relationship

Previous research has provided contested hypotheses about the impact of income inequality on electoral participation. This study reexamines the debate between conflict and relative power theories by focusing on a largely ignored factor: social mobility. We argue that social mobility conditions the inequality-participation nexus by alleviating the frustration, class conflict, and efficacy gaps between the rich and the poor that the prevailing theories assume income inequality to create. By utilizing the Cooperative Congressional Election Survey, we test this argument focusing on US counties. Our analysis confirms that the effects of income inequality on citizens’ likelihood of voting vary depending on mobility, suggesting that social mobility provides a crucial context in which income inequality can play out in substantially different ways. This article implies that more scholarly endeavors should be made to clarify the multifaceted structure of inequality for improving our understanding of the relationship between economic and political inequality.

scholarly journals Poor Laborers and Rich Capitalists? On the Evolution of Income Composition Inequality in Italy 1989-2016

2020 ◽  
Author(s):  
Roberto Iacono ◽  
Marco Ranaldi
Keyword(s):  
Income Inequality ◽  
Economic Inequality ◽  
Labor Income ◽  
Capital Income ◽  
Income Source ◽  
Policy Makers ◽  
Rule Of Thumb ◽  
Working Paper ◽  
Long Run ◽  
Factor Shares

We study the evolution of inequality in income composition in terms of capital and labor income in Italy between 1989 and 2016. We document a rise in the share of capital income accruing to the bottom of the distribution, whilst the top of the distribution increases its share of labor income. This implies a falling degree of income composition inequality in the period considered and, hence, the fact that Italy is moving away from being an economy composed of poor laborers and rich capitalists. This result is robust to the use of different definitions of capital and labor income. A falling degree of income composition inequality implies a weaker link between the functional and personal distributions of income. Therefore, fluctuations in the total factor shares of income are having an increasingly weaker impact on income inequality in Italy. Finally, we conceptualize a rule of thumb for policy makers seeking to reduce income inequality in the long run. This rule relates fluctuations in the total factor shares and the level of income composition inequality to the specific income source to be redistributed. (Stone Center on Socio-Economic Inequality Working Paper)

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