scholarly journals Economic Complexity and Inequality: Does Regional Productive Structure Affect Income Inequality in Brazilian States?

2021 ◽  
Vol 13 (2) ◽  
pp. 1006
Author(s):  
Margarida Bandeira Morais ◽  
Julia Swart ◽  
Jacob Arie Jordaan

Recent research on the effects of the productive structure of an economy has turned to examining whether economic complexity is associated with lower income inequality. In contrast to the commonly adopted approach that estimates the impact of economic complexity in a cross-country setting, we use panel data for Brazilian states to identify the relationship between economic complexity and income inequality at the sub-national level. Our findings show that the relationship between economic complexity and income inequality has an inverted U-shape, indicating that growing levels of complexity first worsen and then improve the income distribution in Brazilian states. Our findings also show that this relationship is particularly prominent in those states that have relatively high levels of urbanization and overall development. Furthermore, we identify separate effects on income inequality from the degree to which regional productive structures are characterised by diversity in terms of industries and occupations. These effects are particularly pronounced in less developed states with a more rural character. In combination, these findings confirm the important role that the productive structure plays in processes that drive improvements in income distributions and suggest that more research on this impact is warranted at the regional level.

2019 ◽  
Vol 49 (2) ◽  
pp. 360-370
Author(s):  
Ki-tae Kim

The income inequality hypothesis on the relationship between income inequality and population health has been debated for decades Disagreement exists on the hypothesis because empirical findings have reached inconsistent conclusions. At the cross-national level, the limited number of industrialized nations has created a chronic small-N problem for statistical analyses of the hypothesis. The OECD regional database containing statistics of hundreds of regional units can provide a breakthrough and is used for the first time for multiple regression in this article. It is found that income inequality is a statistically significant determinant of all the health indicators analysed. The findings support the income inequality hypothesis. In addition, the impact of income inequality seems to be stronger on infant mortality than on old-age mortality. GDP per capita also statistically significantly influences both life expectancy and old-age mortality but not infant mortality.


2021 ◽  
Vol 17 (4) ◽  
pp. 454-461
Author(s):  
Bulat Khusainov ◽  
Asset Nussupov

The article is devoted to the construction and implementation of an econometric model for quantitative assessment of the impact of cross-country, international, and national income inequality on the dynamics and quality of growth of four groups of countries with different levels of development. A substantial analysis of numerous Russian and foreign research that discover the dynamics and quality of growth was carried out. On this basis, we conclude that income inequality is an important characteristic of the quality of growth of both the national and global economies. To study the relationship between inequality and economic growth, the research uses two concepts proposed by the World Bank – cross-country and international inequality. The distinction of this study from all other known works is not in identifying the genesis of the phenomenon of «inequality», but in focusing on the development of concepts of inequality between countries and quantity assessment of their impact on the growth of economies with different income levels (high, above average, below average and low). This development contributes to the expansion of the research landscape that analyses the relationship between economic growth and inequality. The implementation of the constructed model of cross-country regression confirmed the assumption on the negative impact of three types of inequality on countries with different income levels. At that, the degree of their influence for four groups of countries is shown with a different time lag. The statistically significant empirical results are the convincing scientific basis for evidence-based policy while developing an adequate economic policy by national governments, especially in modern conditions


2021 ◽  
Author(s):  
Kamel Bel Hadj Miled ◽  
Moheddine Younsi

Abstract This study examines the relationship between microfinance and income inequality at the macro level using cross-country and panel data. We show that a country with higher MFIs’ gross loan portfolio per capita tends to have lower income inequality, which confirms the beneficial role of microfinance in reducing income inequality at the macro level. Our results suggest that microfinance loans can lead to improve the relative income position of the poor in developing countries, albeit slowly. In the light of the foregoing outcomes, some important recommendations are suggested to the policymakers in order to reducing income inequality. Microfinance becomes an even more popular tool for fighting poverty; reducing income inequality; institutions innovate in their products and programs at a rapid pace


2021 ◽  
pp. 135406882110119
Author(s):  
Matthew Polacko

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.


2019 ◽  
Vol 8 (2) ◽  
pp. 166-184
Author(s):  
Khee Giap Tan ◽  
Sasidaran Gopalan ◽  
Jigyasa Sharma

Purpose The purpose of this paper is to examine the impact of real effective exchange rates (REER), both in terms of levels and volatility, on the export performance of India’s sub-national economies, given the recent slowdown in India’s exports. Design/methodology/approach India’s export distribution is highly asymmetric, with 90 percent of India’s exports concentrated in 11 sub-national economies. Exploiting this concentration, this paper constructs a panel data set using available data between 2002 and 2014 to understand the relationship between REER and exports from the top exporting cluster. Moreover, the paper constructs a sub-national competitiveness index to capture the supply capacity of the states. Findings The empirical findings of this paper reveal that a higher REER volatility deters exports and movements in REER do not matter as much as volatility. The most significant finding of the paper is that state competitiveness is the most crucial factor affecting trade. Therefore, policy makers at the state level must lay more emphasis on the supply side such as addressing logistical bottlenecks to help revive exports growth. Originality/value This study makes a departure from the plethora of extant aggregate-level studies by examining the relationship between REER and exports at the sub-national level for India. Considering the highly skewed distribution of India’s exports, the study provides important insights into the exporting patterns and determinants that are at play at the sub-national level.


2020 ◽  
pp. 014616722092385
Author(s):  
Edika G. Quispe-Torreblanca ◽  
Gordon D. A. Brown ◽  
Christopher J. Boyce ◽  
Alex M. Wood ◽  
Jan-Emmanuel De Neve

How do income and income inequality combine to influence subjective well-being? We examined the relation between income and life satisfaction in different societies, and found large effects of income inequality within a society on the relationship between individuals’ incomes and their life satisfaction. The income–satisfaction gradient is steeper in countries with more equal income distributions, such that the positive effect of a 10% increase in income on life satisfaction is more than twice as large in a country with low income inequality as it is in a country with high income inequality. These findings are predicted by an income rank hypothesis according to which life satisfaction is derived from social rank. A fixed increment in income confers a greater increment in social position in a more equal society. Income inequality may influence people’s preferences, such that in unequal countries people’s life satisfaction is determined more strongly by their income.


2020 ◽  
Vol 41 (6) ◽  
pp. 81-84
Author(s):  
Peter Buell Hirsch

Purpose The purpose of this paper is to highlight the ways in which long running secular trends and the COVID-19 pandemic have combined to re-energize labor movements and pushed political thinking to the left. Design/methodology/approach A review of emerging trends in public opinion and labor action to identify some critical tipping points. Findings There is a critical shift unfolding in which government intervention to stem income inequality is becoming politically acceptable. Originality/value To the best of the author’s knowledge, there have been few, if any comparable discussions of the relationship between the impact of the COVID-19 pandemic and the political will to stem income inequality and the implications for corporate behavior.


2007 ◽  
Vol 21 (2) ◽  
pp. 277-298 ◽  
Author(s):  
Ivana Fellini ◽  
Anna Ferro ◽  
Giovanna Fullin

Migration studies analysing firms' recruitment behaviour are quite limited.This article, built around and examining a demand-driven labour migration hypothesis, explores how recruitment decisions by companies can affect international migratory flows. The study focuses on the construction industry, where a foreign (nondomestic, or expatriate) labour force forms a major component. Through a cross-country comparison, we highlight the impact of the characteristics of the sector and of labour market conditions on recruitment decisions impinging on foreign (non-domestic, or expatriate) labour.The article finally suggests a typology of strategies that construction companies may adopt in order to recruit foreign workers, and it analyses those factors that influence the different decisions in each national context. By considering in depth the relationship between recruitment strategies and patterns of international labour mobility, it is then explained why a company's behaviour can either produce immobility or mobility of foreign workers.


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