Looking Under the Lamp-Post: Using the Piketty-Saez Data Set to Understand Income Inequality and Income Shifting

2012 ◽  
Author(s):  
Stephen Miller ◽  
George Mechling
Keyword(s):  
Income Inequality ◽  
Income Shifting ◽  
Data Set

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

scholarly journals Economic complexity to boost the selected sub-Saharan African economies

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Thobeka Ncanywa ◽  
Itumeleng P. Mongale ◽  
Ombeswa Ralarala ◽  
Thabiso E. Letsoalo ◽  
Brian S. Molele
Keyword(s):  
Income Inequality ◽  
African Region ◽  
African Countries ◽  
Data Set ◽  
Services Sector ◽  
Economic Complexity ◽  
Managerial Implications ◽  
African Context ◽  
Sub Saharan ◽  
Value Add

Orientation: Economic complexity is a measure of productive capabilities indirectly by looking at the mix of sophisticated products that countries export. The economic complexity index proposed a proxy for diversity and ubiquity of products in the export basket.Research purpose: This study seeks to determine if economic complexity can influence the inequality measured by the Gini index in some selected sub-Saharan African countries.Motivation for the study: The need for the study emanates from the notion that that economic complexity can reduce income inequality hence it is imperative to investigate this relationship in the sub-Saharan African region where most countries produce few sophisticated goods that are also labour-intensive. Inadequate literature within the African continent has also contributed to the formulation of this study.Research approach/design and method: This study employed the autoregressive distribution lag (ARDL) model to analyze a panel data set, which includes eight sub-Saharan African countries for the period 1994–2017.Main findings: We found that economic complexity can reduce income disparities.Practical/managerial implications: Sub-Saharan African countries should shift their productive capabilities and resources from primary to sophisticated products in the manufacturing and services sector to increase economic complexity and reduce inequality.Contribution/value-add: The study makes an important contribution to the debate about the relationship between economic complexity and income inequality in the sub-Saharan African context and it is envisaged that it will inform the actions of the decision-makers to drive future productivity and prosperity in the region.

Why Has Crime Risen in Latin America?

2018 ◽  
Author(s):  
Marcelo Bergman
Keyword(s):  
Latin America ◽  
Income Inequality ◽  
Labor Markets ◽  
Social Mobility ◽  
Social Economic ◽  
Data Set ◽  
Family Structures ◽  
Weak Evidence ◽  
Crime Wave ◽  
Different Levels

This chapter discusses the applicability of theories of criminology in explaining the current crime wave in the region, by testing common assumptions of causes of criminality against social, economic, and political data. It is organized around covariates of crime such as labor markets, family structures, income inequality, guns, and drugs, and their correlations with different levels of crime between countries over the last decades. Based on an especially collected data set, this chapter shows that there is only very weak evidence to support the claims that poverty, inequality, and lack of development explain rising crime in the region. The need to transcend these assertions and focus on the mechanisms that produce the erosion of norms, the lack of social mobility, and the institutional weaknesses when opportunities for illegal profits arise is stressed.

Measures of Income Distribution and Economic Growth

2012 ◽  
Author(s):  
Mo Pak Hung
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
Gini Coefficient ◽  
Gdp Growth ◽  
Social Stability ◽  
Data Set ◽  
Inequality Measures ◽  
Negative Effect

In this study, the empirical contents of various income inequality measures are compared under an identical framework with a well-tested data set. Our study suggests that long-term income inequality has a strong negative effect on Gross Domestic Product (GDP) growth under different measurements. Moreover, governments should investigate further into changes in the income size of the middle class as an indicator for potential changes in social stability, investment, and GDP growth, besides focusing on the Gini coefficient, which they predominantly do now.

Cohort differences in intergenerational income transmission in Finland

2016 ◽  
Vol 60 (1) ◽  
pp. 21-39 ◽  
Author(s):  
Outi Sirniö ◽  
Timo M Kauppinen ◽  
Pekka Martikainen
Keyword(s):  
Income Inequality ◽  
Intergenerational Transmission ◽  
High Income ◽  
Social Changes ◽  
Birth Cohorts ◽  
Data Set ◽  
Mediating Role ◽  
Cohort Differences ◽  
Parental Background

Major social changes such as occupational restructuring, educational expansion and increasing income inequality are likely to significantly influence the intergenerational transmission of income. The aim in this article is to investigate this question in an analysis of the transmission of low and high income in Finland in five birth cohorts born between 1956 and 1978. The focus is on the contribution of parental social class and personal educational level to this association. The analyses are based on a longitudinal register-based data set that is a representative 11-per-cent sample of the Finnish population. The level of intergenerational income transmission among those with a low- and a high-income parental background is stable among men, and is increasing slightly among women. Simultaneously, the role of achieved education as a mechanism strengthens slightly upon entry to the lowest income level, and declines upon entry to the highest level. These results indicate that despite the increasing income inequality, intergenerational transmission remains rather stable, but the mediating role of educational qualifications may have changed. Occupational restructuring seems to have no clear influence on the process.

scholarly journals A Reassessment of the Relationship Between Inequality and Growth

2000 ◽  
Vol 90 (4) ◽  
pp. 869-887 ◽  
Author(s):  
Kristin J Forbes
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Relationship ◽  
Data Set ◽  
Omitted Variable Bias ◽  
Specific Effects ◽  
Variable Bias ◽  
Time Invariant ◽  
The Relationship ◽  
Country Specific

This paper challenges the current belief that income inequality has a negative relationship with economic growth. It uses an improved data set on income inequality which not only reduces measurement error, but also allows estimation via a panel technique. Panel estimation makes it possible to control for time-invariant country-specific effects, therefore eliminating a potential source of omitted-variable bias. Results suggest that in the short and medium term, an increase in a country's level of income inequality has a significant positive relationship with subsequent economic growth. This relationship is highly robust across samples, variable definitions, and model specifications. (JEL O40, O15, E25)

scholarly journals A New Data Set Measuring Income Inequality

1996 ◽  
Vol 10 (3) ◽  
pp. 565-591 ◽  
Author(s):  
K. Deininger ◽  
L. Squire
Keyword(s):  
Income Inequality ◽  
Data Set

scholarly journals Racial Income Inequality, Perceptions of Competition, and Negative Interracial Outcomes

2019 ◽  
Vol 11 (1) ◽  
pp. 74-87
Author(s):  
Jonathan Gordils ◽  
Nicolas Sommet ◽  
Andrew J. Elliot ◽  
Jeremy P. Jamieson
Keyword(s):  
Public Policy ◽  
Income Inequality ◽  
Theory Development ◽  
Data Set ◽  
Intergroup Anxiety ◽  
Income Gap ◽  
Behavioral Avoidance ◽  
Competition Study ◽  
Initial Support ◽  
Outcomes Study

There exists a racial income gap in America: Blacks earn ∼38% less than Whites, but little is known about its relation to interracial psychological outcomes. Toward this end, the present research examined associations between the Black–White income gap and perceptions of interracial competition and, subsequently, negative intergroup outcomes. Study 1 extracted data from a large, preexisting data set ( N = 2,543) and provided initial support for the hypothesis that higher levels of racial income inequality are associated with increased perceptions of competition. Study 2 then recruited approximately equal numbers of White and Black participants ( N = 1,731) and demonstrated that increases in racial income inequality predict increased perceptions of competition, discrimination, behavioral avoidance, and intergroup anxiety. Implications for theory development and public policy are discussed.

scholarly journals Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income

2013 ◽  
Vol 103 (3) ◽  
pp. 173-177 ◽  
Author(s):  
Philip Armour ◽  
Richard V Burkhauser ◽  
Jeff Larrimore
Keyword(s):  
United States ◽  
Income Inequality ◽  
Household Income ◽  
The United States ◽  
Capital Gains ◽  
Income Growth ◽  
Data Set ◽  
Inequality Measures ◽  
Market Income ◽  
Return Data

Recent research on levels and trends in the United States in income inequality vary substantially in how they measure income. We show the sensitivity of alternative income measures in capturing income trends using a unified data set. Focusing solely on market income or including realized taxable capital gains based on IRS tax return data in more comprehensive household income measures will dramatically increase inequality growth compared to capital gains measures more in keeping with Haig-Simons principles. Using a measure of yearly accrued capital gains dramatically reduces observed growth in income inequality across the distribution, but also equalizes income growth since 1989.

scholarly journals Income inequality, regional characteristics and household’s conspicuous consumption: An empirical study in developing market

2022 ◽  
Vol 11 (1) ◽  
pp. 64-72
Author(s):  
Yeti Lastuti ◽  
Khoirunurrofik Khoirunurrofik
Keyword(s):  
High Risk ◽  
Income Inequality ◽  
Gini Index ◽  
Conspicuous Consumption ◽  
Data Set ◽  
Regional Characteristics ◽  
Pooled Data ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This study aims to analyze the effect of income inequality and regional characteristics such as ethnicity and religion on conspicuous consumption for visible and invisible good types of households in the Indonesian regions by dividing regions into regions with low and high-income inequality levels based on the value median Gini index in Indonesia. The data set deployed in this study were pooled data collected from households provided by the Indonesian Central Bureau of Statistics 2017 and 2018. Employing the OLS method, we find that 1) income inequality has a negative effect on visible goods, and positive effect on invisible goods, 2) ethnicity and religion give an effect on visible and invisible goods. The government should pay attention to the phenomena of conspicuous consumption because numerous problems will likely arise if this conspicuous consumption is ignored. High conspicuous consumption would tend to lead to a materialistic lifestyle causing a higher inequality. In addition, the crime rate could equally increase given the high risk of conspicuous consumption in attracting others’ attention to individuals’ wealth.

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