Income Inequality and the Financial Crisis

2011 ◽  
Author(s):  
Timothy J. Riddiough ◽  
Raghuram G. Rajan ◽  
Daron Acemoglu ◽  
Edward L. Glaeser
2017 ◽  
Vol 9 (3) ◽  
pp. 91
Author(s):  
Sinem Sefil-Tansever

The aim of this study is to examine mechanism responsible for the behavior of the income and earning inequality in Turkey during the global financial crisis based on data from the 2006 to 2014 Income and Living Conditions Survey. Gini decomposition by income source is employed in order to provide an analysis of the contribution of the various income sources to the evolution of income inequality and to assess the impact of a marginal percentage change in the income from a particular source on income inequality. For examining the contributions of specific variables (education, position in occupation, economic sector) to the interpretation of labor earnings inequality in terms of their gross and marginal contribution, we use static decomposition of Theil T index.


2013 ◽  
Vol 3 (2) ◽  
pp. 120
Author(s):  
Daniel Gibbs

Questions of inequality of wealth frequently arise during times of economic hardship. The stagnant recovery from the 2008 global financial crisis is no exception. Many are quick to condemn inequality as an unjust social phenomenon. This article considers the ethical status of such claims by examining whether inequality is fair or not. Using a neo-Kantian framework first put forward by Hans-Hermann Hoppe, the paper elucidates the presuppositions implied by human action and uses these as a basis for political rights. Once inviolable rights to ownership of one’s person and property are established, it follows that income inequality in the absence of coercion is fair. However, since such a condition does not describe modern society, little can be immediately said about the justice of current levels of inequality.


Author(s):  
Markéta Hnízdilová ◽  
Václav Adamec

The study tackles the issue of distribution inequality in equalized per capita income in households defined by multiple grouping criteria in the Czech Republic before, during and after the economic and financial crisis. The factors were economic status of the household head, number of children, education and the NUTS 3 administrative regions. Interval grouped per capita income data assembled within the EU-SILC framework via quota sampling were received from czso.cz for 2008, 2012 and 2016. Indicators of income level, variation, quantiles, medial and Gini index were calculated for the respective household groups. Income concentration in the Czech Republic is considerably low among OECD states and still decreasing due to government social and economic policy and favourable phase of the economic cycle. The largest income inequality was detected in the self-employed, jobless and qualified employees, households with 3 or more children, single-parent families with dependants, households with one or both tertiary educated parents or households residing in Prague or Středočeský region. The threat of poverty is imminent in the jobless, economically inactive pensioners, unqualified labourers and households with 3 or more children. Geographically, the poverty affects households mostly in Moravskoslezský or Ústecký regions. Government measures evidently helped reduce income inequality, poverty and social exclusion in Ústecký region in 2008. The least affected regions by poverty were Prague and Středočeský region. Significant differences in income level or concentration of income distributions by regional and other household grouping criteria were revealed.


2020 ◽  
pp. 87-116
Author(s):  
Jonathan Hopkin

This chapter argues that the 2016 election in the United States is best understood in terms of the long-run consequences of the neoliberal turn in the 1970s, and the way in which the financial crisis of the late 2000s was addressed. In 2016 the electorate of the United States delivered probably the biggest political shock in their modern history, electing the unlikely figure of Donald Trump to the presidency. Trump’s rise is deeply intertwined with the financial crisis and with the longer-term political shifts resulting from the market liberal turn of the 1980s. If Trump is the most spectacular example of anti-system politics, the United States is the most extreme case of the subjection of society to the brute force of the market. The destabilization of US politics shows how an obsessive drive for marketization, high levels of income inequality, an unstable financial system, and constraints on political choice provoke political revolt.


2010 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Michael Barratt Brown

Since late 2008, together with the current financial crisis we can see a return of the Keynes’s proposals, including the proposal to create an international currency (Bancor). This paper reflects on some of these measures, the effectiveness of monetary policies, the growing income inequality, the new role of banks, political strategies of governments to address the crisis and the opportunities for combining the economical recovery with measures to promote a more sustainable development..


2019 ◽  
Vol 20 (4) ◽  
pp. 471-504 ◽  
Author(s):  
Martin Biewen ◽  
Martin Ungerer ◽  
Max Löffler

Abstract While income inequality in Germany considerably increased in the years before 2005, this trend stopped after 2005. We address the question of what factors were responsible for the break in the inequality trend after 2005. Our analysis suggests that income inequality in Germany did not continue to rise after 2005 for the following reasons. First, we observe that the general rise in wage inequality that explained a lot of the inequality increase before 2005, became less steep (but did not stop) after 2005. Second, despite further increases in wage inequality after 2005, inequality in annual labour incomes did not increase further after 2005 because increased within-year employment opportunities compensated otherwise rising inequality in annual labour incomes. Third, income inequality did not fall in a more marked way after 2005 because also the middle and the upper part of the distribution benefited from the employment boom after 2006. Finally, we provide evidence that the effect of a wide range of other factors that are often suspected to have influenced the distribution such as capital incomes, household structures, population ageing, changes in the tax and transfer system and the financial crisis of 2008 did not significantly alter the distribution after 2005.


2016 ◽  
Vol 63 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Philip Arestis ◽  
Ana Gonzalez-Martinez

The aim of this contribution is to discuss closely the implications of income inequality and the economic policies to tackle it, especially so in view of inequality being one of the main causes of the 2007/2008 international financial crisis and the ?great recession? that subsequently emerged. Wealth inequality is also important in this respect, but the focus is on income inequality. Ever since the financial crisis and the subsequent ?great recession?, inequality of income, and wealth, has increased and the demand for economic policy initiatives to produce a more equal distribution of income and wealth has become more urgent. Such reduction would help to increase the level of economic activity as has been demonstrated again more recently. A number of economic policy initiatives for this purpose will be the focus of this contribution.


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