• Title, Summary, Keyword: Income Inequality

Search Result 240, Processing Time 0.045 seconds

The Trend in Fishery Household Income Inequality and Its Gini Factor Decomposition (어가소득 불평등도의 변화추이와 지니요인 분해)

  • Kim, Sang-Kwon
    • The Journal of Fisheries Business Administration
    • /
    • v.45 no.1
    • /
    • pp.17-31
    • /
    • 2014
  • This study examines trends in the overall income inequality of fishery household from 2003 to 2012 with the panel data of the Fishery Household Economy Survey. To investigate the potential determinants of income inequality, we decomposes the Gini coefficients into five income sources, fishery income, non-fishery income(non-fishery business income, non-business income), transfer income, irregular income and calculate the impact of each income sources on total income inequality. An evident trend toward increasing inequality of household income was found. Also, we find rising fishery income and non-fishery income play important role in the rapid increase of income inequality. Only transfer income appear to reduce total income inequality.

The Impact of Foreign Remittances and Financial Development on Poverty and Income Inequality in Pakistan: Evidence from ARDL - Bounds Testing Approach

  • Kousar, Rizwana;Rais, Syed Imran;Mansoor, Abdul;Zaman, Khalid;Shah, Syed Tahir Hussain;Ejaz, Shakira
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.6 no.1
    • /
    • pp.71-81
    • /
    • 2019
  • The objective of the study is to examine the impact of financial development and foreign remittances on poverty and income inequality in the context of Pakistan. The study used ARDL-Bounds testing approach for robust inferences. The results show that in the short-run, remittances increases poverty and income inequality, which further translated into its long-run impact. The result confirmed the inverted U-shaped relationship between per capita income and income inequality, while the second order coefficient of per capita income substantially decline poverty incidence in a country. In the long-run, the results disappeared and it's turned into U-shaped relationship between income inequality and country's per capita income. Education largely decreases income inequality both in the short and long-run, however, it increases poverty in the long-run. Unemployment rate substantially damaged the pro-poor growth scenario, as high unemployment rate increases both the poverty rates and income inequality, which suffered poor more than non-poor in a country. Financial development has a positive impact on poverty reduction and income inequality in the short-run. The impact of income inequality on poverty incidence is positive both in the short- and long-run, which need pro-poor growth policies and rationale income distribution in a country.

The Effect of Health Care Expenditure on Income Inequality (의료비 지출이 소득불평등에 미치는 영향)

  • Song, Eun-Cheol;Kim, Chang-Yup;Shin, Young-Jeon
    • Health Policy and Management
    • /
    • v.20 no.3
    • /
    • pp.36-57
    • /
    • 2010
  • The degree of income inequality deepened by health care expenditure was useful in assessing the health security level. This exploratory study was conducted to provide a basic evidence to prove the necessity of reinforcement the benefit coverage of South Korea's health security systems. Data from the Household Income and Expenditure Survey of Korea and Luxembourg Income Study were used. Income inequality indices before and after deduction of health care expenditure were computed, and the degree of the increase in the indices was compared among 13 countries. The degree of decrease against the effect of income inequality reduction policies by health care expenditure was determined. The relationships between the national characteristics and the increase in income inequality were examined. In South Korea, all income inequality indices increased after deducting health care expenditure, but the difference was not high compared to the mean of 13 countries. However, the degree of decrease against the effect of income inequality reduction policies by health care expenditure was high, compared to the mean of 13 countries. The proportion of public sector spending on health care proved to be statistically significant with the increase of income inequality indices (p<0.05). In the context of the continuous increase in health care expenditure, if benefit coverage of health security systems is not reinforced, income inequality will all the more increase due to health care expenditure. In the establishment of the policies for reinforcement of the benefit coverage, income inequality after deduction of health care expenditure should be continuously monitored.

Comparison of Income and Consumption Inequalities (불평등도 지표로서의 소득과 소비의 비교)

  • Kim, Dae-Il
    • Journal of Labour Economics
    • /
    • v.30 no.3
    • /
    • pp.77-102
    • /
    • 2007
  • This paper compares income and consumption for their relative effectiveness in measuring inequality. Although income inequality has received more attention in the literature, the permanent income hypothesis links consumption to welfare more directly than income. To the extent economic agents smooth their consumptions, consumption inequality is a better indicator for an economy's welfare inequality, and it is especially so when income volatility is high. The empirical analysis in this paper indicates that the income and consumption patterns among the Korean wage/salary worker households are quite consistent with the permanent income hypothesis. Further, it is found that consumption inequality tends to be lower than income inequality, and more importantly, that the two inequalities do not always vary in the same direction. These results call for stronger emphasis on consumption inequality in inequality literature.

  • PDF

Forest income and inequality in Kampong Thom province, Cambodia: Gini decomposition analysis

  • Nhem, Sareth;Lee, Young Jin;Phin, Sopheap
    • Forest Science and Technology
    • /
    • v.14 no.4
    • /
    • pp.192-203
    • /
    • 2018
  • This study analyzed the distribution of forest income and other variable sources of rural household income and considered their importance for the reduction of income inequality and poverty. We employed Gini decomposition to measure the contribution of forest income and other sources of income to income equality and assess whether they were inequality-increasing or inequality-decreasing in the 14 villages. The forest income Gini correlation with total income was very high, $R_k=0.6960$, and the forest income share of total rural household income was 35% ($S_k=0.3570$). If the income earned from forest activities was removed, the Gini index would increase by 10.3%. Thus, if people could not access forest resources because of vast deforestation, perhaps from the limitations of government-managed forestry, unplanned clearing of forest land for agriculture or the granting of ELCs, there would be an increase in income inequality and poverty among rural households. The findings suggest that policy makers should look beyond agriculture for rural development, as forest resources provide meaningful subsistence income and perhaps contribute to both preventing and reducing poverty and inequality in rural communities. The study found that non-farm activities were inequality-increasing sources of income. The share of non-farm income to the total rural household income was $S_k=0.1290$ and the Gini index of non-farm income was very high, $G_k=0.8780$, compared with forest and farm income. This disagrees with other studies which have reported that non-farm income was inequality-decreasing for the rural poor.

Analysis on the Change and Its Cause of Income Distribution before and after the Financial Crisis: Income Mobility Perspective

  • Yoo, Gyeongjoon
    • KDI Journal of Economic Policy
    • /
    • v.26 no.1
    • /
    • pp.141-190
    • /
    • 2004
  • Income inequality in Korea has increased after the economic crisis, and the main reason for the widening of income distribution is due to the increase of the unemployed when analyzed using the Urban Household Report(UHR). However, income inequality has not decreased although the rate of unemployment decreased after 2000. Further data bases for income-related statistics are necessary to examine the exact causes of changing income inequality as a whole since the UHR covers only statistics on urban employees' wage and salary in Korea.

  • PDF

Fiscal Decentralization, Corruption, and Income Inequality: Evidence from Vietnam

  • NGUYEN, Hung Thanh;VO, Thuy Hoang Ngoc;LE, Duc Doan Minh;NGUYEN, Vu Thanh
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.7 no.11
    • /
    • pp.529-540
    • /
    • 2020
  • The objective of this research paper is to study the simultaneous relationship between fiscal decentralization, corruption, and income inequality among Vietnamese provinces. We use a balanced panel data set of 63 provinces/cities in Vietnam in the period from 2011 to 2018. The study used 3SLS-GMM (Three Stage Least Squares - Generalized Method of Moments estimator) and GMM-HAC (Generalized Method of Moments - Heteroskedastic and Autocorrelation Consistent estimator). Empirical evidence shows a strong simultaneous relationship: increased corruption will increase regional income disparities, income inequality, and increase fiscal decentralization. In addition, the results also suggest that an increase in per-capita income will reduce the level of corruption, or better control corruption of each province. The degree of increase in income inequality, which reduces fiscal decentralization, is the same for trade liberalization. All demonstrate that there is a simultaneous relationship between fiscal decentralization, corruption, and income inequality. In a region of high public governance quality, fiscal decentralization positively effects its economic growth. This issue will indirectly increase income inequality between provinces within a country. Our findings imply that a country's fiscal decentralization strategy should be linked to improving corruption control and local governance effectiveness, indirectly improving income inequality between localities or regions.

Factors Impacting on Income Inequality in Vietnam: GMM Model Estimation

  • NGUYEN, Hiep Quang
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.8 no.2
    • /
    • pp.635-641
    • /
    • 2021
  • This article analyzes the factors affecting income inequality in Vietnam, with data from 63 provinces and cities collected from the Vietnam Household Living Standards Survey of the General Statistics Office of Vietnam from 2010 to 2018. The article will firstly build a research model to identify factors affecting income inequality. Then, it uses the Generalized Method of Moments (GMM) method to evaluate the effect of factors on income inequality in Vietnam. The empirical estimate result shows that, in the period from 2010 to 2018, the factors such as the proportion of the working employees, income per capita, and inflation have positive effects on the Gini coefficient. That is, when these factors increase, there will be negative effects on improving income inequality in Vietnam. Conversely, when the factors such as the proportion of the literate adults, the proportion of the urban population, and population density increase they will have a positive impact on improving income inequality in Vietnam during this period. The estimated coefficients satisfied the sign expectation except the proportion of the literate adults. It means that, in Vietnam, the increase and more equilibrium in educational attainment balance the distribution of income and bring an improvement in income inequality.

An Analysis of the Conditions and Causes of Income Inequality: Focusing on the Urban Worker Households (소득불평등 실태, 원인분석 및 과제: 도시근로자 가구를 중심으로)

  • Chai, Goo-Mook
    • Korean Journal of Social Welfare
    • /
    • v.59 no.1
    • /
    • pp.199-221
    • /
    • 2007
  • This study examines the conditions and causes of income inequality and seeks assignments for mitigating income inequality. An analysis of the conditions and causes of income inequality is summarized as follows. First, income inequality, which rapidly increased after the economic crisis, increased and reduced repeatedly during 1999-2004, and remained a level in 2005 as high as that of the year directly after the economic crisis. Second, an analysis of the causes of income inequality by utilizing the long-term data(1985-2004) shows that unemployment rate, nonstandard employment rate, and the rising rate of land prices positively affect income inequality. Third, an analysis of the causes of income inequality by utilizing the data before and after the economic crisis(1995-2004) demonstrates that unemployment rate, nonstandard employment rate, and the workers' income ratio between large enterprises and small enterprises positively affect income inequality. Fourth, the rising rate of land prices which significantly affects income inequality in the data of 1985-2004 does not affect income equality in the data of 1995-2004, and the workers' income ratio between large enterprises and small enterprises which does not affect income inequality in the data of 1985-2004 significantly affect income equality in the data of 1995-2004. These results suggest several implications for mitigating income inequality. First, alternative plans to reduce unemployment rate must be prepared. Second, policies to reduce nonstandard employment rate should be established. Third, programs to stabilize or lower the land prices must be deliberated. Fourth, a master-plan to support small to medium enterprises must be carried out in order to reduce the wage differentials between large enterprises and small to medium enterprises.

  • PDF

Trends on Income Inequality and Bi-polarization for Forest Household (임가의 소득불평등과 양극화 추이)

  • Kim, Eui-Gyeong;Jung, Byung-Heon;Kim, Dong-Hyun
    • Journal of Korean Society of Forest Science
    • /
    • v.106 no.4
    • /
    • pp.497-508
    • /
    • 2017
  • This study conducted to examine about the income inequality and bi-polarization for forestry household. For this purpose, Gini coefficient and Atkinson index were used to analyze the income inequality for forestry household. Also, DER index were employed to show their income bi-polarization. Before using these methodologies, forestry household income was divided into three parts that was forestry income, non forestry business income and transfer income. And then, income inequality and bi-polarization were analyzed respectively. The result shows that forestry household income inequality was higher than whole household inequality. Apart from transfer income, forestry household income, forestry income and non forestry business income inequality was aggravated. At the same time, these tendency was able to observe the bi-polarization for forestry household income and other income sources.