scholarly journals UK and other advanced economies productivity and income inequality

2022 ◽  
pp. 25-40
Author(s):  
Philip Arestis
Keyword(s):  
Income Inequality ◽  
Advanced Economies

scholarly journals THE ROLE OF INTEGRATED ISLAMIC COMMERCIAL AND SOCIAL FINANCE IN REDUCING INCOME INEQUALITY IN INDONESIA

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Arif Widodo
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Wealth Distribution ◽  
Generalized Method Of Moments ◽  
Advanced Economies ◽  
The Social ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Commercial Finance

Recent years saw the heated debates among prominent economists on the growinginequality in advanced economies, and accordingly, many solutions to this seriousproblem have been put forward. Among the practical-cum-workable solution isprogressive taxation for wealth and income, especially the top one percent. Such asolution, however, has been implemented in Islamic perspective what so-called, zakahwhich is now referred to as social finance. In this paper, using the Gini coefficient datacovering 34 provinces in Indonesia over a decade, we examine whether the role ofsocial finance in tandem with commercial finance can adequately solve the problemof wealth distribution in Indonesia, one of the largest Democratic-Muslim countriesin the world. Using the Generalized Method of Moments (GMM) model, the resultsdemonstrated that Islamic commercial finance solely is proven statistically incapable oftackling inequality while the social finance (zakah) is performing very well in this matterover all specifications. Most importantly, when both are incorporated in a model, theresult showed a significant reduction in income inequality implying that the integratedIslamic finance which can be implemented in both Islamic microfinance institution andIslamic banking is more capable, as opposed to when both are separated, of helpingaddress the income inequality problem in Indonesia.

scholarly journals Further Evidence on Import Demand Function and Income Inequality

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 91
Author(s):  
Ioanna Konstantakopoulou
Keyword(s):  
Income Inequality ◽  
Demand Function ◽  
Import Demand ◽  
One Dimension ◽  
Var Model ◽  
Cross Sectional ◽  
Stochastic Trends ◽  
Advanced Economies ◽  
Cross Sectional Dependence ◽  
The Impact

In advanced economies, rising inequality has become a significant economic issue. Our paper examines one dimension of the impact of inequality. This study employs panel estimators that tackle heterogeneity and cross-sectional dependence to estimate the impact of income inequality on import demand. In addition, we use a Bayesian approach to the cointegrated VAR model as well as a model that allows for stochastic trends and cross-sectional dependence. Annual panel data for the period from 1995 to 2016 on OECD countries are used. The empirical results show that inequality has a positive and significant effect on import demand. The estimation also yields some other expected results, viz. that the income and price elasticity of import demand function are positive and negative, respectively.

Inequality in Advanced Economies

2018 ◽  
Author(s):  
Danny Dorling
Keyword(s):  
Income Inequality ◽  
Economic Geography ◽  
Negative Externalities ◽  
Income Distributions ◽  
Nation States ◽  
Advanced Economies ◽  
Recent Developments ◽  
The Subject ◽  
The Uk ◽  
Robust Evidence

Levels of economic inequality differ extensively when comparisons are made between nation states, although, worldwide, inequalities remain highest in the poorest countries. Yet now even some of the wealthiest nations have markedly high levels of income inequality. This chapter concentrates on illustrating this unprecedented, contemporary transformation in income inequalities towards greater geographical variation between affluent countries. In particular, new data analysis included here uncovers significant idiosyncrasies in the income distributions of the UK and USA, as compared with other wealthy countries. Increasingly robust evidence suggests that high and rising inequalities in a few affluent nations have far-reaching implications, and income inequality should be recognized as a source of extensive negative externalities. These recent developments underscore the need for the subdiscipline of economic geography to focus far more on understanding patterns and changes in income inequality within prosperous nations. Thus far, geographers have largely neglected the subject and its consequences.

scholarly journals Closing the Gap

2019 ◽  
Vol 10 ◽  
pp. 80-90
Author(s):  
Daniel Ribi
Keyword(s):  
Income Inequality ◽  
Income Tax ◽  
World Economy ◽  
Personal Income Tax ◽  
Tax Reforms ◽  
Political Issue ◽  
New Approach ◽  
Advanced Economies ◽  
Closing The Gap ◽  
Globalized World

Rising income inequality is a pressing political issue in Canada and internationally. Yet, policymakers in advanced economies have thus far failed to meaningfully address the issue. Tax policy is one of the primary tools available for governments to structure local distributive realities, but there is uncertainty regarding the ability of governments to take effective action in a globalized world economy. This policy brief puts forward viable reforms. The Canadian federal government can mitigate income inequality in Canada through targeted corporate and personal income tax reforms and a new approach to compliance enforcement.

scholarly journals Manufacturing Jobs and Inequality

2019 ◽  
Vol 2019 (191) ◽  
Author(s):  
Natalija Novta ◽  
Evgenia Pugacheva
Keyword(s):  
United States ◽  
Income Inequality ◽  
Service Sector ◽  
The United States ◽  
Wage Premium ◽  
Wage Distribution ◽  
Actual Increase ◽  
Advanced Economies ◽  
High Level ◽  
The U.S

We examine the extent to which declining manufacturing employment may have contributed to increasing inequality in advanced economies. This contribution is typically small, except in the United States. We explore two possible explanations: the high initial manufacturing wage premium and the high level of income inequality. The manufacturing wage premium declined between the 1980s and the 2000s in the United States, but it does not explain the contemporaneous rise in inequality. Instead, high income inequality played a large role. This is because manufacturing job loss typically implies a move to the service sector, for which the worker is not skilled at first and accepts a low-skill wage. On average, the associated wage cut increases with the overall level of income inequality in the country, conditional on moving down in the wage distribution. Based on a stylized scenario, we calculate that the movement of workers to low-skill service sector jobs can account for about a quarter of the increase in inequality between the 1980s and the 2000s in the United States. Had the U.S. income distribution been more equal, only about one tenth of the actual increase in inequality could have been attributed to the loss of manufacturing jobs, according to our simulations.

scholarly journals The Effect of Financial Deepening on Economic Growth, Inequality, and Poverty: Evidence from 73 Countries

2020 ◽  
Vol 15 (2) ◽  
pp. 15-27
Author(s):  
Catur Sugiyanto ◽  
Zefania Yolanda
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Developing Economies ◽  
Financial Deepening ◽  
Negative Effects ◽  
Positive Effects ◽  
Panel Data Regression ◽  
Advanced Economies ◽  
Data Regression ◽  
Negative Effect

AbstractThis study aims to analyze the effect of financial deepening on economic growth, income inequality, and poverty rates in 73 countries during the period 1991–2015. Panel data regression and the interaction of dummy variables are used to measure the effect. The results indicate that financial deepening has positive effects on economic growth, but negative effects on income inequality and poverty rates; has significant effect on economic growth in advanced economies (AEs) and significant effect on income equality and poverty rates in emerging markets and developing economies (EMDEs). These findings show that countries have to be selective in developing their financial sectors as it either can have positive or negative effect.

scholarly journals Essays on inequality, economic growth and political polarization

2021 ◽  
Author(s):  
◽  
Juan Carlos Peña
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Voting Behavior ◽  
Social Preferences ◽  
Developing Economies ◽  
Social Consequences ◽  
Political Polarization ◽  
Public Attention ◽  
Dynamic Relationship ◽  
Advanced Economies

Economic inequality has moved into the focus of academic debate in the last decade as it gained increasing public attention in the aftermath of the financial crisis in 2007. The present dissertation contributes to the growing and existing literature on income inequality by presenting three contributions that empirically analyze the economic, political and social consequences of income inequality. Chapter 1 explores the dynamic relationship between economic growth and the different metrics of income inequality using a compiled dataset covering 110 advanced and developing economies from 1980 to 2016. Chapter 2 examines the macroeconomic and social determinants of voting behavior, and especially of political polarization, using a compiled dataset for 20 advanced economies from 1980 to 2016 which covers 291 parliamentary elections. Finally, chapter 3 investigates the effects of group identity and income inequality on social preferences and polarization by means of a laboratory experiment.

scholarly journals Structural Change and Income Inequality – Agricultural Development and Inter-sectoral Dualism in the Developing World, 1960-2010

OASIS ◽  
2016 ◽  
pp. 99 ◽  
Author(s):  
Martin P. Andersson ◽  
Andrés F. Palacio Chaverra
Keyword(s):  
Structural Change ◽  
Income Inequality ◽  
Service Sector ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Developing World ◽  
Country Level ◽  
Sectoral Productivity ◽  
Advanced Economies ◽  
Sectoral Composition

Structural change consists of the long-term changes in the sectoral composition of output and employment. We introduce a structural change perspective to the study of income inequality in 27 countries of the developing world for the period 1960-2010. The service sector has become the main employer, but the agricultural sector is central to the income distribution because poverty is mostly rural, and the labor surplus is high. We decompose the sectoral composition of aggregate labor productivity at the country level, divide the countries into agrarian, dual (beginner, intermediate and advanced), and mature economies and use the inter-sectoral productivity gap to test the effect of structural change on income inequality. We confirm increases in agricultural productivity everywhere and find that the inter-sectoral gap is positively associated with income inequality. The effect is negligible in agrarian and advanced economies but powerful in dual beginner economies: an increase of 1% in the inter-sectoral gap increases income inequality by 0.5%. The effect peters out in dual intermediate economies and disappears completely in dual advanced economies. Finally, redistribution has been the key to compensating the losers in the income changes, particularly for those entering the non-agricultural economy.

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