scholarly journals Income Distribution and Human Trafficking Outflows

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.

2021 ◽  
Vol 66 (2) ◽  
pp. 16-32
Author(s):  
Grzegorz Przekota ◽  

Determining the level of income inequality requires the adoption of a specific measurement methodology. The aim of the study was to review and discuss the methodologies used to measure income inequality. Four measures are presented, each based on different assumptions. These measures were the Gini coefficient, Theil coefficient, Kukuła coefficient and unevenness coefficient. The first three measures, and in particular the Gini coefficient, are commonly described in the literature, while the unevenness coefficient is the author’s proposal for measuring income inequality. The empirical material for the research consists of data on the distribution of disposable income by decile groups in households in Poland for the years 2005–2017. The most important issue in practice regarding the measurement of income inequality was the transfer principle. Depending on the methodology adopted, the transfer of income is treated differently. The Gini, Theil and Kukula coefficients respond to any change in the income distribution, while the unevenness coefficient only to changes above the average. In a situation where the Gini coefficient (Theil and Kukula) decreases (increases), the level of inequality decreases (increases), but it is not known which transfers led to such a result. The decreasing (growing) unevenness coefficient means that these were transfers from groups with shares in income above (below) the average for groups with shares below (above) the average.


PLoS ONE ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. e0249204
Author(s):  
Ji-Won Park ◽  
Chae Un Kim

Income inequality is known to have negative impacts on an economic system, thus has been debated for a hundred years past or more. Numerous ideas have been proposed to quantify income inequality, and the Gini coefficient is a prevalent index. However, the concept of perfect equality in the Gini coefficient is rather idealistic and cannot provide realistic guidance on whether government interventions are needed to adjust income inequality. In this paper, we first propose the concept of a more realistic and ‘feasible’ income equality that maximizes total social welfare. Then we show that an optimal income distribution representing the feasible equality could be modeled using the sigmoid welfare function and the Boltzmann income distribution. Finally, we carry out an empirical analysis of four countries and demonstrate how optimal income distributions could be evaluated. Our results show that the feasible income equality could be used as a practical guideline for government policies and interventions.


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


Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 248-257
Author(s):  
Ferdi Celikay ◽  
Mehmet Sengur

Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.


2017 ◽  
Vol 17 (3) ◽  
pp. 651-685 ◽  
Author(s):  
Gilberto Antonelli ◽  
Pinuccia P Calia ◽  
Giovanni Guidetti

Abstract The article analyses the role of institutions in the determination of income inequality in a sample of OECD countries. Basing on the seminal approach by Amable, the article discusses the theoretical definition of model of capitalism. The basic idea is that each model of capitalism is defined by the cobweb of complementary relationships established among different institutions. Using a set of statistical indicators of the operation of institutions in two different years, 1995 and 2010, the empirical analysis points out five models of capitalism and exhibits how their composition has changed in this lapse of 15 years. In the following sections of the article, we investigate the role played by the model of capitalism in the determination of income distribution, measured through a standard Gini index. After controlling for a set of variables, the econometric evidence shows that different models of capitalism present significantly different levels of income inequality.


2021 ◽  
pp. 1-30
Author(s):  
Marius Clemens ◽  
Ulrich Eydam ◽  
Maik Heinemann

Abstract This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional income distribution over the business cycle. In a panel estimation for OECD countries between 1970 and 2016, although inequality is, on average countercyclical and significantly associated with the capital share, one-third of the countries display a pro- or noncyclical relationship. To analyze the observed pattern, we incorporate distributive shocks into an RBC model, where agents are ex ante heterogeneous with respect to wealth and ability. We find that whether wealth and income inequality behave countercyclically or not depends on the elasticity of intertemporal substitution and the persistence of shocks. We match the model to quarterly US data using Bayesian techniques. The parameter estimates point toward a non-monotonic relationship between productivity and inequality fluctuations. On impact, inequality increases in response to TFP shocks but subsequently declines. Furthermore, TFP shocks explain 17% of inequality fluctuations.


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.


2020 ◽  
Vol 52 (3) ◽  
pp. 359-393
Author(s):  
Andŕe Albuquerque Sant' Anna ◽  
Leonardo Weller

Did the threat of communism influence income distribution in developed capitalist economies during the Cold War? This article addresses this question by testing whether income inequality in OECD countries was related to events linked to the spread of communism—revolutions and Soviet interventions—around the world. We argue that the threat of the spread of communism acted as an incentive for the elites and governments to keep economic inequality low. This article provides an empirical contribution to the recent literature on inequality, which highlights the role of domestic institutions but ignores the role of the Cold War in redistributing income. We find a robust relationship between income inequality and the distance to communist events. The results, reinforced by cases studied, suggest that the spread of communism fostered income redistribution deals between domestic elites and workers. Finally, we show that these effects were reinforced by strong unions and the presence of strong communist parties.


2005 ◽  
Vol 08 (01) ◽  
pp. 159-167 ◽  
Author(s):  
HAI-BO HU ◽  
LIN WANG

The Gini coefficient, which was originally used in microeconomics to describe income inequality, is introduced into the research of general complex networks as a metric on the heterogeneity of network structure. Some parameters such as degree exponent and degree-rank exponent were already defined in the case of scale-free networks also as a metric on the heterogeneity. In scale-free networks, the Gini coefficient is proved to be equivalent to the parameters mentioned above, and moreover, a classification of infinite scale-free networks is given according to the value of the Gini coefficient.


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