Income inequality: Does it matter?

Wong, Alfred; Ribeiro, Christine Maria Carneiro Maranhão

doi:10.5937/ekonhor1702141w

Cited by 2 publications

(2 citation statements)

References 16 publications

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“…Atkinson et al [8] particularly point to rich layers of society as they have a strong incentive to understate their taxable incomes, adding that both rich individuals and rich companies seek to maximize their wealth on the tax-favorable basis. Wong & Ribeiro [47] add that the richest groups of society that hide significant part of their wealth distort the income inequality statistics. These arguments may imply that the official income inequality is underestimated due to tax-motivated large hidden wealth.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Taxes and income inequality in the European Union: A quantile regression approach

Vržina,

Luković

2023

Ekonomika preduzeća

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This paper tests the role of taxes in reducing income inequality in the European Union members. Using Eurostat data on Gini coefficients in a 14-year period, a slight growing trend of income inequality is found. The main findings indicate that taxes have a negative and statistically significant impact on income inequality, though this impact is relatively weak. A quantile regression estimates suggest that the redistributive power of taxes is highest in the most unequal societies and vice versa. It implies that taxes reduce income inequality mostly in the early stages of government efforts toward reducing income inequality. In the paper it is argued that combating cross-border tax avoidance is of the first-order importance for reducing income inequality instead of increasing statutory tax rates or progressivity of taxes. Research results are robust to changes of sampling period and lagging independent variables.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Taxes and income inequality in the European Union: A quantile regression approach

Vržina,

Luković

2023

Ekonomika preduzeća

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“…The discourse on income inequality and its defining implications has remained topical (Wong & Ribeiro, 2017), drawing the attention of economists and policymakers across regions throughout the world. Studies on the income inequality -growth nexus are mainly classified into two categories: the studies on how economic growth influences income inequality, on the one hand, and the studies assessing how income disparities exert an influence on growth, on the other.…”

Section: Introductionmentioning

confidence: 99%

The effect of economic growth on income inequality in Sub-Saharan Africa

Abidemi

2023

Ekon horizonti

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In this paper, the way in which economic growth influences income distribution is examined with a focus on Sub-Saharan Africa (SSA). Despite considerable growth in a number of the SSA countries, the region has been slow in reversing the rising trend of income inequality. A large proportion of countries in the region globally rank among economies with extreme income inequality. The study covers a period from 1995 to 2015, due to the limited data on the measure of income inequality, the Gini index, for the largest number of the countries of the region. The Generalized Method of Moments (GMM) system was employed in examining this paradox. The findings of this research study do not only suggest the presence of an inverted-U relationship between economic growth and income inequality, but the supposition of the S-shaped curve hypothesis in the interplay of growth and inequality was also tested and confirmed. It can be concluded that in no way do spurts in economic growth bring about diminution in income disproportion in Sub-Saharan Africa.

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Income inequality: Does it matter?

Cited by 2 publications

References 16 publications

Taxes and income inequality in the European Union: A quantile regression approach

Taxes and income inequality in the European Union: A quantile regression approach

The effect of economic growth on income inequality in Sub-Saharan Africa

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