Taxes and transfers do little to reduce high market income inequality

2021 ◽  
Keyword(s):  
Income Inequality ◽  
Market Income

scholarly journals Fair and Inclusive Markets

2021 ◽  
Vol 21 (29) ◽  
Author(s):  
Philippe Aghion ◽  
Reda Cherif ◽  
Fuad Hasanov
Keyword(s):  
Income Inequality ◽  
Empirical Evidence ◽  
Poverty Alleviation ◽  
Policy Options ◽  
Growth Opportunities ◽  
Market Structures ◽  
Sustained Growth ◽  
Market Income ◽  
High Level ◽  
Export Industries

We show empirical evidence that there may not be a tradeoff between market income inequality and high sustained growth, which is key for poverty alleviation. We argue that the economies that achieved high sustained growth and low market income inequality are characterized by dynamism—a drive toward sophisticated export industries, innovation, and creative destruction and a high level of competition. What a country produces and how much it competes domestically and internationally are important for achieving fair and inclusive markets. We explore policy options to steer industrial and market structures toward providing growth opportunities for both workers and firms.

scholarly journals Corrigendum: Correction to Zarkovic Rakic et al. (2019)

2020 ◽  
Vol 65 (224) ◽  
pp. 129-129
Author(s):  
E Editorial
Keyword(s):  
Comparative Analysis ◽  
Income Inequality ◽  
Transition Economies ◽  
Gini Coefficient ◽  
Market Income ◽  
Social Transfers ◽  
Redistributive Effects ◽  
Font Color

Some terminological inaccuracies have been identified in the article ?Income inequality in transition economies: a comparative analysis of Croatia, Serbia and Slovenia? by Jelena Zarkovic Rakic, Gorana Krstic, Nermin Oruc and Will Bartlett which appeared in Economic Annals, 2019, LXIV(223): 39-60. https:// doi.org/10.2298/EKA1923039Z. On pp. 43-45 of the article, the term ?market income? should read ?post-tax income? and the term ?tax and benefit? on p. 44- 45 should read ?benefit?. The Legend for Figure 1 on p 44 ?Redistributive effects of social transfers? in place of ?Redistributive effects reducing market inequality?. The Note should read ?? the post-tax Gini coefficient for total equivalised income before social transfers (including pensions) [ilc_di12b] ?in place of ?...the marketgenerated Gini coefficient for total equivalised income?. The authors are grateful to Nikola Altiparmakov for bringing their attention to these details.<br><br><font color="red"><b> Link to the corrected article <u><a href="http://dx.doi.org/10.2298/EKA1923039Z">10.2298/EKA1923039Z</a></b></u>

Regional Market Income Inequality and its Impact on Crime in Germany: A Spatial Panel Data Approach with Local Spillovers

2020 ◽  
Vol 240 (4) ◽  
pp. 387-415
Author(s):  
Philipp Süß
Keyword(s):  
Economic Theory ◽  
Panel Data ◽  
Income Inequality ◽  
Motor Vehicles ◽  
Spatial Panel ◽  
Spatial Spillovers ◽  
Regional Market ◽  
Market Income ◽  
Spatial Panel Data ◽  
Positive Effect

AbstractEconomic theory predicts a positive effect of an increase in income inequality on the prevalence of crime, but the international empirical evidence is mixed. For Germany, research on this topic is virtually non-existent. Therefore, I used fixed effect regressions to estimate the effect of a market income inequality proxy on property damages, thefts from motor vehicles, domestic burglaries and assaults in Germany. The models without spatial lags suggest economically small to moderate own-district elasticities between 0.13 and 0.95. The models with spatial lags generally show insignificant own-district estimates, but significant spatial spillovers.

Income Inequality Trends and their Challenges to Redistribution Policies in Japan

2007 ◽  
pp. 9
Author(s):  
Tetsuo Fukawa ◽  
Takashi Oshio
Keyword(s):  
Income Inequality ◽  
Labor Force Participation ◽  
Unique Feature ◽  
Population Aging ◽  
The Elderly ◽  
Inequality Measures ◽  
Market Income ◽  
Working Age ◽  
Japanese Elderly ◽  
Working Age Population

This article is an overview of income inequality trends during the 1980s and 1990s and a discussion of their challenges to redistribution policies in Japan. The key results are summarized as follows. First, a widening disparity in market income for the working-age population has been driving rising income inequality in society as a whole, while population aging has added to the uptrend. Second, wide income inequality for the aged population reflects high rates of co-residency and labor force participation among the elderly. This unique feature to the Japanese elderly explains the fact that population aging has led to a rise in overall inequality measures. Third, the current scheme of redistribution policies is less effective for reducing income inequality compared to other countries of the Organization for Economic Co-operation and Development countries (OECD), leaving distribution of disposable income relatively uneven in Japan.

scholarly journals Inequality in Chile before the first globalization: an approach derived from agricultural market income, 1830s-1850s

2018 ◽  
pp. 103-134
Author(s):  
Manuel Llorca-Jaña ◽  
Juan Navarrete-Montalvo ◽  
Roberto Araya-Valenzuela ◽  
Keyword(s):  
Income Inequality ◽  
Agricultural Sector ◽  
Total Income ◽  
Agricultural Market ◽  
Gini Coefficients ◽  
Market Income ◽  
Unskilled Labourer ◽  
Chilean Population ◽  
Very High

This article assesses agricultural market income inequality by examining three untapped comprehensive agricultural censuses of all of Chile, undertaken in 1834, 1838 and 1852. Since there had been no Chilean income inequality measurements prior to 1860, this is a novel contribution. Given Chile’s great dependence on the agricultural sector during the pre-industrial period of the 1830s to 1850s, measures of agricultural market income inequality can safely be taken as a proxy for total income inequality. This study found that agricultural market income inequality was extremely high during the first decades after Chilean independence. Gini coefficients for agricultural market income among landowners were 0.75, 0.75 and 0.79 for 1834, 1838 and 1852 respectively, while the figures for the entire rural Chilean population, including the landless, were 0.79, 0.87, and 0.89. Around 85% of the population did not own any land and for an unskilled labourer to rent a plot of 1,500 hectares in 1834 cost 3.3 years of wages, and annual wages of 11.3 in 1838. In a conclusion that is at odds with previous historiographical findings, our data suggest that inequality in Chile was very high and had begun to increase decades before the first globalization.

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