Unequal Opportunities and Individual Achievements: Effect of Family Background

Equal opportunity theory is based on the idea that inequality of individual achievements is a complex phenomenon. It is formed by two groups of factors: (1) one's own decisions and efforts (inequality of efforts) and (2) circumstances beyond one's control (inequality of opportunities). Therefore, wealth inequality caused by effort factors (1) is fair and is not to be compensated for, whereas differences in welfare caused by objective circumstances (2) are unfair and should be compensable (the compensation principle). This paper introduces an assessment of circumstances associated with family background: composition, psychological atmosphere, well-being, occupation, education, etc. Parents' education and two-parent status appeared to be the most important circumstances. Respondents who grew up in a two-parent family with both biological parents had a higher income than those who grew up in one-parent families or with one biological and one stepparent. The low economic status of the parental family also proved to affect the well-being of grown-up children. Thus, efforts to provide equal opportunities can have a long-term effect on social inequality and build a more just society.

Poverty, wealth inequality, and financial inclusion among castes in Hindu and Muslim communities in Uttar Pradesh, India

This study estimates poverty, wealth inequality, and financial inclusion, for the first time, at the sub-caste level in both Hindus and Muslims using a unique survey data collected from 7124 households in Uttar Pradesh, India, during 2014-2015. The results confirm the existing hypothesis that Brahmins, Thakurs, and other Hindu general castes have higher wealth accumulation, lower poverty, and lesser exclusion from formal financial services than Dalits. Exclusion from formal financial services forces Dalits to depend primarily on informal financial sources for borrowing—which leads to financial misfortune and further dragging them into a vicious cycle of poverty.

Working from home and long-term housing wealth inequality in large cities of advanced economies

Purpose The purpose of this study is to explain the potential long-term impacts of working from home on housing wealth inequality in large cities of advanced economies. Design/methodology/approach This study is descriptive research and It supports the arguments by providing some emerging evidence from property markets in developed countries. Findings The authors argue that due to the unique nature of the COVID-19 crisis, it will have a different and long-term impact on housing wealth inequality. Changes in the working arrangements of many professionals will change the housing demand dynamic across different suburbs and may lead to a reduction of the housing wealth gap in the long term. In this paper, the authors propose five mechanisms that may impact housing wealth inequality. Research limitations/implications Long-term data is required to test the proposed conceptual model in this study and the effect of the COVID-19 pandemic on housing wealth across and within suburbs of large cities. Practical implications Policymakers and regulators may benefit from the discussions and suggestions provided in this study and consider the proposed avenues on how new changes in the working environment (remote working) may result in a reduction of housing wealth inequality. Originality/value This study presents a new perspective about the potential long-term impacts of working from home that is posed by the COVID-19 pandemic on housing wealth inequality in large cities of developed economies.

An Economic Perspective on the Intergenerational Transmission of Wealth Inequality

Intergenerational transmission of wealth is a long-standing component of society. With the current accelerated economic development, the forms of wealth transmission and the ways in which it affects individuals’ lives have gradually become more complicated. In this article, we explore the economic performance and basic flow patterns of intergenerational transmission. We first discuss the key factors of personal and family wealth accumulation. We then consider how social performance affects the phenomenon of intergenerational transmission and the macro-channels of the current transmission mode. Finally, while intergenerational transmission is widespread in society, its importance has not attracted widespread attention from socioeconomic researchers and this paper makes suggestions for further study of the phenom ena. Our main conclusion is that in current society, intergenerational transmission both directly and indirectly influences the lives of members of society in multiple ways, such as through income, employment and education. If a basic understanding of the phenomenon of intergenerational transmission can be established, it will assist people in making relevant decisions more scientifically and allow them to have a fairer life experience.

Social work and economic justice in Aotearoa New Zealand

The social work profession is dedicated to the promotion of social and economic justice, but often has a limited appreciation of what economic justice actually looks like either in theory or practice. Economic justice, a form of distributive justice, assesses how fairly economic resources are distributed in a society. Currently, in Aotearoa New Zealand, both income and wealth inequality have reached historically high levels. Inequality research has demonstrated a causal link between inequality and a host of social and health issues that, while they impact society as a whole, affect the nation’s most marginalised populations to an increasingly greater degree. Social work literature in Aotearoa New Zealand has limited research in this area. This introductory article will begin with an overview of concepts related to economic justice, such as distributive justice, income inequality, and wealth inequality. Following this is an overview of the 2020 Economic Justice Online Forum and an exploration of the implications for social work.

The United Kingdom’s exposure to corruption is rising

Significance This reflects long-standing dynamics linked to the United Kingdom’s role in facilitating illicit global financial flows. In addition, recent political developments under Prime Minister Boris Johnson’s government have fuelled the perception that UK rule of law standards are declining. Impacts Surging real estate prices and increasing wealth inequality facilitate money laundering. Academic freedom in the United Kingdom is potentially impacted by the increase in private donations to universities. The ruling Conservative Party is particularly vulnerable to charges of corruption, given its reliance on private funding.

Evaluating Homeownership as the Solution to Wealth Inequality

Homeownership presents an opportunity to accumulate wealth, making it an appealing vehicle for reducing wealth inequality. In this Commentary, we explore the investment side of homeownership. The opportunity for leveraged returns can lead to wealth gains among lower-income households; however, we note that homeownership for low-income homeowners carries three types of risk that are higher for them than for high-income homeowners: location, timing, and liquidity. Thus, policies that incentivize purchasing homes to reduce wealth inequality or close racial wealth gaps should be adopted only after great care has been taken to protect against these risks.

Characterizing Wealth Inequality in Cryptocurrencies

Cryptocurrencies often tend to maintain a publically accessible ledger of all transactions. This open nature of the transactional ledger allows us to gain macroeconomic insight into the USD 1 Trillion crypto economy. In this paper, we explore the free market-based economy of eight major cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Dash, Litecoin, ZCash, Dogecoin, and Ethereum Classic. We specifically focus on the aspect of wealth distribution within these cryptocurrencies as understanding wealth concentration allows us to highlight potential information security implications associated with wealth concentration. We also draw a parallel between the crypto economies and real-world economies. To adequately address these two points, we devise a generic econometric analysis schema for cryptocurrencies. Through this schema, we report on two primary econometric measures: Gini value and Nakamoto Index which report on wealth inequality and 51% wealth concentration respectively. Our analysis reports that, despite the heavy emphasis on decentralization in cryptocurrencies, the wealth distribution remains in-line with the real-world economies, with the exception of Dash. We also report that 3 of the observed cryptocurrencies (Dogecoin, ZCash, and Ethereum Classic) violate the honest majority assumption with less than 100 participants controlling over 51% wealth in the ecosystem, potentially indicating a security threat. This suggests that the free-market fundamentalism doctrine may be inadequate in countering wealth inequality within a crypto-economic context: Algorithmically driven free-market implementation of these cryptocurrencies may eventually lead to wealth inequality similar to those observed in real-world economies.