Economic Inequality and Its Socioeconomic Impact

Income inequality and solidarity in Europe

“…We already referred to the fact that income inequality might be perceived as a negative development by both the better-off and the less-well-off, as high inequality might lead to negative externalities such as social tensions, crime, feelings of insecurity and even political instability (for an overview see Neckerman & Torche, 2007). Indeed, the economic literature has shown that inequality negatively affects economic growth through political instability and uncertainty about property rights (Thorbecke & Charumilind, 2002). Although this type of study is usually based on a sample of both developed and developing countries, we argue that our sample is varied enough (including the former Communist countries which experienced signifi cant transitions on many domains) to expect a positive effect of income inequality on calculating feelings of solidarity.…”

“…Likewise, in economic research there is much debate on whether income inequality and trends in inequality foster or hinder economic growth, and is hence a 'good' or a 'bad' thing. Recent empiri-cal research however seems to contradict the conventional economic wisdom that more income inequality fosters aggregate savings, capital accumulation and hence, growth (for a review, see Thorbecke & Charumilind, 2002).…”

Does Income Inequality Lead to Terrorism? Evidence from the Post-9/11 Era

“…Thorbecke and Charumilind (2002) find that income inequality is associated with less education and poorer health on the society-level. For instance, inequality may constrain the poor's investment decisions in education and health, leading to unfavorable outcomes (Thorbecke and Charumilind, 2002).…”

Does Inequality Harm Democracy? An Empirical Investigation on the UK

“…4 Krueger 2012. 5 See, for instance, Karl 2000;Bermeo 2009;Bartels 2008;Thorbecke and Charumilind 2002;Mueller 1988;Bollen and Jackman 1985;Boix 2003. developing-developed ones. 10 We are not interested in a worldwide comparison because developing countries differ in fundamental ways from the developed ones, and democracies in transition have to be studied separately as well.…”