scholarly journals Market and Inequality Revisited

2006 ◽  
pp. 147-174
Author(s):  
Alejandro F. Mercado ◽  
Tirza J. Aguilar
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Market Structure ◽  
Free Market ◽  
Microsimulation Model ◽  
Oriented Structure ◽  
Distribution Of Income

The great controversy regarding the results of the application of market-oriented policies on the population's conditions of life, especially about the inequality in the distribution of income, has constituted the concern that has given origin to this paper.With the objective to test the hypothesis that a free market structure promotes a better income distribution, we have carried out several quantifications of inequality indices in the different structures of the labor market in Bolivia; also, a microsimulation model has been applied, to see whether change toward a market-oriented structure can improve the distribution of income and, lastly, we have carried out an exercise to link income inequality with social mobility.The reached results, although they are not the sufficiently strong to validate the hypothesis, are sufficiently clear to show us that the free market policies do not act in a negative way on the income distribution.

scholarly journals Market Imperfections and Income Distribution

2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Labor Markets ◽  
Wage Rate ◽  
Consumption Patterns ◽  
Market Imperfections ◽  
Luxury Goods ◽  
Sector Model ◽  
Two Sectors

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.

Extreme Inequality in Income and Wealth

2017 ◽  
pp. 1-24
Author(s):  
Venkat Venkatasubramanian
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Free Market ◽  
Mainstream Economic ◽  
Market Society ◽  
Global Trends ◽  
Economic Theories ◽  
Novel Theory

Chapter one provides a summary of the global trends in income inequality and ask what kind income distribution there ought to be, under ideal conditions, in a free market society. The chapter also raises three other fundamental questions regarding the fairness, stability and optimality of such a distribution. Since these questions cannot be answered by mainstream economic theories, or by econophysics, we outline the development of our novel theory to address them.

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?

Fairness in Income Distribution

2017 ◽  
pp. 79-142
Author(s):  
Venkat Venkatasubramanian
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Free Market ◽  
Mathematical Formalism ◽  
Market Society ◽  
Class Society ◽  
Equilibrium Distributions ◽  
Ideal Free

In this chapter, we develop the complete mathematical formalism for π‎-class societies at equilibrium. We prove that the fairest income inequality is lognormal, attained at equilibrium, in an ideal free market society. We also prove that it is unique, stable, social optimal, and moral. We prove that for a 2-class society, the equilibrium distributions are two non-overlapping lognormals, which can be easily mistaken for a lognormal-Pareto pair in practice.

scholarly journals Income Distribution, Market Structure, and Individual Welfare

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Alexander Tarasov
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Market Structure ◽  
Poverty Reduction ◽  
Monopolistic Competition ◽  
Well Being ◽  
Welfare Gains ◽  
The Poor ◽  
Heterogenous Firms ◽  
Economic Well Being

This paper explores how income distribution affects market structure, prices, and economic well-being of different consumer groups. I consider a general equilibrium model of monopolistic competition with free entry, heterogenous firms and consumers that share identical but non-homothetic preferences. The results in the paper suggest that poverty reduction might be of a greater importance than lowering income inequality, as lower income inequality does not necessarily lead to welfare gains of the poor. In particular, I show that higher income inequality may benefit the poor via a trickle-down effect operating through the entry of firms into the market.

scholarly journals Banking and income inequality of the American community: an analysis

2016 ◽  
Vol 11 (1) ◽  
pp. 52-59
Author(s):  
Lijing Du ◽  
Michail Dewally ◽  
Ying Ying Shao ◽  
Daniel Singer
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Urban Areas ◽  
Local Economy ◽  
Local Distribution ◽  
Community Banks ◽  
Banking Activity ◽  
Median Level ◽  
Distribution Of Income

Community banks in American urban areas are found to have a significant effect on the local distribution of income. Banking activity is seen to both decrease inequality by increasing the median level of income and simultaneously increase inequality by increasing the size of either tail of the income distribution. The net effect of banks providing liquidity to the American local economy and increasing access to the banking infrastructure is to decrease income inequality in these communities

Measuring the Effect of Wage Inequality on Income Distribution via Theil Index in the Manufacturing Industry of Spain-Portugal

2021 ◽  
pp. 208-224
Author(s):  
Özgür Bayram Soylu ◽  
Ayhan Orhan ◽  
Murat Emikönel
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Wage Inequality ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Theil Index ◽  
Economic Policies ◽  
Production Factors ◽  
Distribution Of Income ◽  
Primary Problem

Income distribution is defined as sharing income arising from the sale of products among persons, groups, or production factors in a country within specific periods. Income inequality is the wage gaps between persons, groups, or regions. Increasing income inequality is accepted as the primary problem of economies in terms of bringing along many problems. This is because the fair distribution has continued to remain on the agenda of economic policies. There are several methods in measuring the inequality in the distribution of income as well as this study utilized Theil index because of the sensitivity of related index to super and subgroups of the income distribution. Spain and Portugal, in this chapter, were accepted as a single county; Spain and Portugal (each) were accepted as the regions of this presumptive country. Under this assumption, the course of wages inequality in time was revealed by the inequality analysis that was performed for eight sub-sectors of the manufacturing sector of Spain and Portugal for the years between1995 and 2015.

scholarly journals Accounting for the Importance of Nonfarm Income on Farm Family Income Inequality in New York

1990 ◽  
Vol 19 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Richard N. Boisvert ◽  
Christine Ranney
Keyword(s):  
New York ◽  
Income Inequality ◽  
Income Distribution ◽  
Family Income ◽  
Policy Implications ◽  
Farm Families ◽  
Farm Family ◽  
Nonfarm Income ◽  
On Farm ◽  
Distribution Of Income

As the proportion of farm family income due to nonfarm sources continues to grow nationally, it is important to understand how farm families in various regions or states are affected. This paper develops a better understanding of the contribution of income from nonfarm sources to the level and distribution of income among farm families in New York. In analyzing income distribution, the Gini ratio is decomposed to determine the effects of marginal changes in income by source to overall inequality. The results are compared with the simulated changes in income inequality due to changes in income by source as measured by an “adjusted” Gini ratio which accounts specifically for negative farm incomes. Differences in the policy implications from both procedures are compared. The relationships among sources of income and policy implications can be brought into sharper focus by examining both measures.

scholarly journals Economic Development Paper

2019 ◽  
Author(s):  
Diana Annisa
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Income Distribution ◽  
High Growth ◽  
Relative Poverty ◽  
Low Level ◽  
The Poor ◽  
The Rich ◽  
Distribution Of Income

The main problems in economic development are increasing economic growth, eliminating poverty and eliminating poverty. In some destination countries it is sometimes a dilemma between emphasizing economic growth or reducing inequality in income distribution (Deininger and Olinto, 2000). High growth does not necessarily guarantee that the inequality of income distribution will be low.Poverty and income inequality are two things that are being intensely emphasized by the government's growth. Inequality is closely related to poverty because fundamentally inequality is an indicator of relative poverty, namely the gap between the rich and the poor. The low level of inequality, or the more even distribution of income, is certainly one of the important agendas of economic development.To measure economic inequality can be seen using the Gini ratio. Gini ratio is an indicator of income distribution level indicated by a coefficient of zero to one, which means the higher the coefficient, the more uneven distribution of income of the population.

scholarly journals Analysis of Income Distribution and Economic Growth Relation in Process of Neoliberal Economic Policies in Turkey

2016 ◽  
Author(s):  
Ahmet İncekara ◽  
Betül Mutlugün
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Social Issues ◽  
Transformation Process ◽  
Moral Concern ◽  
Economic Policies ◽  
Unequal Distribution ◽  
Vast Literature ◽  
Distribution Of Income

Income inequality has long been the economic, social, political and moral concern for many countries. Attaining more fair income distribution along with economic growth and development has started to gain importance. But in spite of the vast literature on income distribution and economic growth, there remains disagreement on the effect of income inequality on economic growth. With the transformation process as a result of neoliberal policies implemented since the late 1970’s, unequal distribution of income became more apparent in terms of economic and social issues. In this study, the effect of neoliberal economic policies on income inequality and economic growth has been analyzed in the context of social classes.

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