scholarly journals Education and Income Inequality Reconsidered: A Cross-Country Analysis of Data from 1960-2000

2013 ◽  
Vol 28 (1) ◽  
pp. 43-65
Author(s):  
Kim Eun Ju
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Critical Role ◽  
Educational Opportunities ◽  
Education Inequality ◽  
Education And Health ◽  
Country Analysis ◽  
Cross Country ◽  
The Relationship

Recent comparative inequality studies have addressed not only income but also other dimensions such as education and health inequality. Education has been believed to play a critical role in the nexus of inequality and growth. This study examines whether education distribution has an effect on income inequality. It empirically analyzes the relationship between education inequality and income inequality using quinquennial panel data from 100 countries for 1960-2000. The results show that education inequality and income inequality have a nonlinear, inverted-U-shaped relationship. This relationship appeared more consistently in developing countries. These findings suggest that educational opportunities should be more equally provided for better income distribution, especially in developing countries.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

The impacts of sector growth and monetary policy on income inequality in developing countries

2019 ◽  
Vol 46 (3) ◽  
pp. 591-610 ◽  
Author(s):  
Sima Siami-Namini ◽  
Darren Hudson
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Monetary Policy ◽  
Panel Data ◽  
Income Inequality ◽  
Nonlinear Effect ◽  
Service Sector ◽  
Functional Form ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to explore the effect of growth in different sectors of the economy of developing countries on income inequality and analyze how inflation, as a proxy for monetary policy, makes a proportionate contribution for setting a binding national target for reducing income inequality. The paper examines the existence of a linear or nonlinear effect of inflation and sectoral economic growth on income inequality using a balanced panel data of 92 developing countries for the period of 1990–2014.Design/methodology/approachMethods section includes several steps as below: first, the functional form of the model using panel data for investigating the contribution of economic sectors in income inequality; second, to estimate the relationship between income inequality and sector growth: testing the Kuznets hypothesis; third, to estimate the relationship between inflation and income inequality base on general functional form of the model proposed by Amornthum (2004); fourth, a panel Granger causality analysis based on a VECM approach.FindingsThe statistically significant finding shows that first agricultural growth and then industrial growth have a dominate impact in reducing income inequality in our sample. But, the service sector growth has positive effects. The results confirm the existence of Kuznets inverted “U” hypothesis for industry growth and Kuznets “U” hypothesis for service sector growth. The findings show that sector growth and inflation affect income inequality in the long-run.Originality/valueThis research is an original paper which analyzes the effect of growth in different sectors of the economy of developing countries (agriculture, manufacturing and services sectors) on income inequality and test the Kuznets hypothesis in terms of sector growth and at the same time, examine the existence of a linear/nonlinear effect of inflation and sectoral economic growth on income inequality and test Granger causality relationship between income inequality and sector growth and inflation.

Does Microfinance Program Innovation reduce income inequality? A cross-country analysis

2021 ◽  
Author(s):  
Kamel Bel Hadj Miled ◽  
Moheddine Younsi
Keyword(s):  
Income Inequality ◽  
Macro Level ◽  
Lower Income ◽  
Loan Portfolio ◽  
Country Analysis ◽  
Program Innovation ◽  
Rapid Pace ◽  
Cross Country ◽  
The Relationship

Abstract This study examines the relationship between microfinance and income inequality at the macro level using cross-country and panel data. We show that a country with higher MFIs’ gross loan portfolio per capita tends to have lower income inequality, which confirms the beneficial role of microfinance in reducing income inequality at the macro level. Our results suggest that microfinance loans can lead to improve the relative income position of the poor in developing countries, albeit slowly. In the light of the foregoing outcomes, some important recommendations are suggested to the policymakers in order to reducing income inequality. Microfinance becomes an even more popular tool for fighting poverty; reducing income inequality; institutions innovate in their products and programs at a rapid pace

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

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