scholarly journals The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction

2017 ◽  
Vol 2 (2) ◽  
pp. 11-28
Author(s):  
Qurroh Ayuniyyah ◽  
Ataul Huq Pramanik ◽  
Norma Md Saad ◽  
Muhammad Irwan Ariffin

This study attempts to analyze the effect of consumption and production-based zakat distribution programs in eradicating poverty and reducing income inequality of the zakat beneficiaries by using the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model, Deciles method, Gini coefficient and Atkinson index. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) in three different cities and regencies including Bogor, Depok and Sukabumi. It suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is observed that one year after receiving zakat programs, production-based programs have higher increase of the material and spiritual condition (represented by falah index) by 300 percentage points while households who obtained consumption-based programs rise by only 20 percentage points. It is also found that the Gini coefficient decreases by 0.017 points while Atkinson index falls by 0.042 points indicating that the income inequality among observed zakat beneficiaries are improved. This study has substantiated the role of zakat for poverty alleviation and income inequality reduction that can benefit development in general. Keywords: Zakat Distribution Programs, Poverty, Income Inequality

Author(s):  
Nova Rini ◽  
Nurul Huda ◽  
Yosi Mardoni ◽  
Purnama Putra

This research attempts to examine the role of zakat in reducing income inequality and poverty, by taking a case study in Bogor. Two zakat institutions, Baytul Maal Bogor and Baytul Ikhtiar have been selected. A number of well-known inequality and poverty measures have utilized including Lorenz Curve, Gini coefficient, Atkinson index, headcount ratio, poverty gap index, income gap index, sen index and FGT index. After analyzing 200 household as the respondent, this study found zakat has increased monthly income of the household 11,48%. In general, the presence of zakat helps lower the income inequality an average of 0,3% points. The findings suggest that the presence of zakat has make better the income loss of the respondent  an average of 25,7% points. The existence of zakat is able to decrease the poverty incidence an average of 44% points. The gap of poverty can be reduced as the poverty gap show can be reductions of 27%. The depth of poverty can be reduced as the income gap show the reductions 18,8% points. Similarly, the severty of poverty can also be lower as evidenced from 18% points increase in the Sen index and 10% points increase in the FGT index.


2017 ◽  
Vol 17 (1) ◽  
pp. 108
Author(s):  
Nova Rini ◽  
Nurul Huda ◽  
Yosi Mardoni ◽  
Purnama Putra

This research attempts to examine the role of zakat in reducing income inequality and poverty, by taking a case study in Bogor. Two zakat institutions, Baytul Maal Bogor and Baytul Ikhtiar have been selected. A number of well-known inequality and poverty measures have utilized including Lorenz Curve, Gini coefficient, Atkinson index, headcount ratio, poverty gap index, income gap index, sen index and FGT index. After analyzing 200 household as the respondent, this study found zakat has increased monthly income of the household 11,48%. In general, the presence of zakat helps lower the income inequality an average of 0,3% points. The findings suggest that the presence of zakat has make better the income loss of the respondent  an average of 25,7% points. The existence of zakat is able to decrease the poverty incidence an average of 44% points. The gap of poverty can be reduced as the poverty gap show can be reductions of 27%. The depth of poverty can be reduced as the income gap show the reductions 18,8% points. Similarly, the severty of poverty can also be lower as evidenced from 18% points increase in the Sen index and 10% points increase in the FGT index.


2020 ◽  
Vol 38 (5) ◽  
pp. 1914-1931 ◽  
Author(s):  
Nicholas M Odhiambo

This paper examines the dynamic relationship between financial development, income inequality and carbon dioxide (CO2) emissions in a step-wise fashion, using data from 39 sub-Saharan African (SSA) countries during the period 2004–2014. The study uses three income inequality indicators – the Gini coefficient, the Atkinson index and the Palma ratio – to examine these linkages. The study employs the generalised method of moments as the estimation technique. The empirical findings show that financial development unconditionally reduces CO2 emissions in SSA countries. The findings also show that there are threshold levels of income inequality that should not be exceeded in order for the negative impact of financial development on CO2 emissions to be sustained. Specifically, the study finds that the negative impact of financial development on CO2 emissions is likely to change to positive if the following inequality levels are exceeded: 0.591, 0.662 and 5.59, respectively, for the Gini coefficient, the Atkinson index and the Palma ratio. The findings of this study have far-reaching policy implications not only for SSA countries but also for developing countries as a whole. Policy implications are discussed.


2018 ◽  
Vol 10 (2) ◽  
pp. 28
Author(s):  
Cassandra E. DiRienzo ◽  
Jayoti Das

This study seeks to close the gap between the theoretical rationale for the role of income inequality in human trafficking and lack of empirical evidence supporting this relationship. It is argued that differences in income, especially the income of the poorest in the population, is a significant push factor encouraging individuals to undertake risky migration. Nonetheless, the Gini coefficient, which is typically used in human trafficking research, does not accurately capture the theoretical rationale for why difference in population income, especially the income of the poorest in the population, should matter. A different metric for measuring income inequality – one that is tied to the theoretical underpinnings -- is introduced. Empirical evidence supporting the role that income plays on the poorest in the population on human trafficking outflows is offered. Specifically, as the poorest in the population become marginally better off, there is an increase in human trafficking outflows at the country level.


2018 ◽  
Vol 4 (1) ◽  
pp. 85-100 ◽  
Author(s):  
Qurroh Ayuniyyah ◽  
Ataul Huq Pramanik ◽  
Norma Md. Saad ◽  
Muhammad Irwan Ariffin

This research aims to analyze the role of zakat distribution programs for poverty allevation and income inequality reduction among groups in urban and rural areas. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (BAZNAS) as the coordinating zakat institution in Indonesia, in five different cities and regencies in West Java Province namely, Bogor, Depok and Sukabumi. The analytical tools used in this study are the modification of the Center of Islamic Business and Economic Studies (CIBEST) model, CHAID analysis, Deciles method and Gini coefficient. This study suggests that the present zakat distribution programs can significantly alleviate poverty and reduce income inequality among the observed zakat beneficiaries. It is also found that spiritual supervision and routine assistance form BAZNAS officers, informal education, family size, age and job of the respondents are the variables that are statistically significant in influencing the increase of the households’ monthly income and spirituality. 


1991 ◽  
Vol 19 (4) ◽  
pp. 347-357 ◽  
Author(s):  
Willi Ecker ◽  
Victor Meyer

This case study illustrates the reduction of severe stuttering by an individually tailored treatment programme. Interventions are derived from a tripartite analysis (Lang, 1971) and include EMG biofeedback, regulated breathing, exposure in vivo to stressful communication situations and cognitive techniques to reduce relapse risk. The role of dysfunctional response system interactions in stuttering is emphasized. Treatment resulted in a marked reduction of stuttering and associated facial contortions during videotaped conversations with strangers and oral reading. Improvement was maintained at one-year follow-up.


e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 20-32
Author(s):  
Grzegorz Golebiowski ◽  
Piotr Szczepankowski ◽  
Dorota Wisniewska

Abstract The article examines the impact of financialization on income inequality between 2004 and 2013, through a panel analysis of seven European countries. Moreover, it attempts to examine differences in the perception of the phenomenon between the selected European countries belonging to the G-7 and countries from Central and Eastern Europe. The results demonstrate the existence of individual effects, which means that the level of inequality under examination is influenced predominantly by country-specific factors. The most significant correlation is noticeable between the level of unemployment and the degree of income inequality. An increase in unemployment is accompanied by a rise in the disproportions in the level of income that individual citizens have at their disposal whereas a decrease in the unemployment level contributes to an improvement of the GINI coefficient. Simultaneously, the results confirm the existence of significant correlations between the level of the GINI coefficient and such financialization indicators as the share of employment in finance in total employment and the contribution of the financial sector to total value added creation. The most prominent dependency was discovered when a constructed synthetic indicator was adopted as an indicator of financialization. At the same time, analysis of the synthetic country financialization indicator points to a conclusion that the level of financialization is higher in European countries belonging to the G-7 (especially Great Britain) than in countries from Central and Eastern Europe.


Author(s):  
Andrew Smithers

Living standards change in line with GDP per head only if the distribution of incomes is unchanged. If incomes become less equally distributed the living standards of most people will fall even if GDP per head is stable. The Gini Coefficient is the most widely used indicator designed to measure the distribution of income. UK inequality, on this measure, has risen since 1977, stabilized since 1987, and fallen in recent years. In the US there has been a long-term increase in income inequality. Unless this US trend for increased income inequality halts, it is quite likely that even if GDP per head rises in the US, the living standard of the average voter will fall. The recent data suggest that changes in income inequality pose less of a threat to living standards in the UK then they do to those in the US.


2019 ◽  
Vol 9 (2) ◽  
pp. 359
Author(s):  
Misnawati Misnawati ◽  
Hasbi ◽  
Abd Rasyid J ◽  
Yusriadi Yusriadi ◽  
Saidna Zulfiqar Bin-Tahir

The Family Hope Program (PKH) is one of government policy programs in poverty alleviation by involving the main actor who called PPKH. This study aimed to describe the task and function of PPKH in empowering the sick society in Bone Regency. Qualitative approach used with case study research. Data collection techniques used was interviews, observation, and documentation. The instrument in this study was the researcher himself as a human instrument, while the informants selected by a purposive method. Data analysis techniques used an interactive model includes data collection, data reduction, data presentation, verification, and conclusion. The results of the study showed that PPKH has carried out their roles well as representatives and technicians but have not been optimal in their roles as facilitators and educators.


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