Inflation and income inequality: does the level of income inequality matter?

Berisha, Edmond; Dubey, Ram Sewak; Gharehgozli, Orkideh

doi:10.1080/00036846.2022.2128293

Cited by 9 publications

(5 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It may be difficult for them to plan for the future and make investments in themselves, such as their education, their health, and their economic advancement. The present study is also supportive of the arguments given above and reveals the positive link between inflation and income inequality (Berisha et al, 2023;Bhatti, Chaudhry, & Bashir, 2021;Moradizadeh et al, 2022;Shabnum & Malik, 2023;Zheng et al, 2023).…”

Section: Resultssupporting

confidence: 91%

“…In addition to this, the findings of the study reveal that the majority of nations that have a large percentage of people with high levels of education also have low levels of inequality at the very bottom of the distribution. Berisha, Sewak Dubey, and Gharehgozli (2023) suggest that the distributional repercussions of unexpected inflation have a very limited time horizon.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Trade Liberalization, Education, Inflation, FDI, and Urbanization: Implications for Income Inequality in the Developing World

Bashir,

Munir,

Ali

et al. 2023

iRASD J. Eco.

View full text Add to dashboard Cite

The purpose of the present study is to analyze the influence of Trade openness, Expenditure in education, inflation, FDI, Household consumption expenditure, and urbanization on Income Inequality of some selected developing countries from 2006 to 2022. After collecting panel data of some selected developing economies from World Development Indicators, Im, Pesaran & Shin (IPS) – panel unit root test has been applied to check stationary levels of variables. Then, the panel ARDL technique was applied to the selected data after confirming the mixed order of integration (using IPS) of selected variables and the findings suggest that Income Inequality is significantly increased by Urbanization, Trade Openness, Inflation, and household consumption Expenditure while Expenditure in Education and Capital Formation significantly reduce Income Inequality in developing countries.

show abstract

Section: Resultssupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Trade Liberalization, Education, Inflation, FDI, and Urbanization: Implications for Income Inequality in the Developing World

Bashir,

Munir,

Ali

et al. 2023

iRASD J. Eco.

View full text Add to dashboard Cite

show abstract

“…There is an extensive academic literature on the impact of inflation on income inequality. Berisha et al (2022), considering the complexity of the interaction between inflation and inequality, investigated whether the impact of inflation on inequality differs between the levels of income inequality in different states in the USA. The results showed that inflation hurts income inequality, amplified when income inequality is higher.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

An empirical analysis of inflation's influence on income inequality in Lithuania

Mudričenko,

Laskienė,

Gižienė

et al. 2023

Econ. manag. sustain.

View full text Add to dashboard Cite

Income inequality is a growing problem worldwide, especially in developed countries, with adverse social, economic, political and health consequences. In 2017, the goal of reducing poverty and inequality was included in the United Nations' seventeen Sustainable Development Goals list. Despite this, governments are not paying enough attention to tackling the problem, and inequality continues to rise. To take appropriate measures to reduce income inequality, it is essential first to understand the underlying causes, as this can help to tackle the problem at its root. Many different factors have been identified as impacting income inequality, one of which is inflation. Inflation is currently at an all-time high in the country, reaching as high as 19.7% in 2022. This makes it particularly difficult for low-income earners to make ends meet, as buying necessities is becoming harder and harder. Given that rising inflation, due to geopolitical factors, is also an issue in Lithuania and throughout Europe, it is essential to analyse the relationship between income inequality, as this can help us make the right decisions in tackling both problems. This study aims to identify the impact of inflation on income inequality in Lithuania. The research methods used to achieve the objective were graphical analysis, literature analysis, correlation analysis and regression analysis. The study shows a linear relationship between the Gini coefficient and inflation, as measured by the change in the GDP deflator, in Lithuania over 2008-2021, but that the impact of inflation on inequality is observed after one year. Similarly, a parabolic relationship is found when examining the impact of a change in inflation, as measured by the change in the GICP, on income inequality. However, changes in producer prices significantly impact income inequality only after three years. An analysis of the impact of changes in the prices of different commodities on income inequality reveals that, over the period analysed, the main contributors to inequality have been increases in the prices of oil, gas, food, and non-alcoholic beverages. Inflation directly impacts income inequality in Lithuania, so policymakers should consider it when formulating social policy.

show abstract

“…For example, protests and strikes can disrupt supply chains and lead to shortages, which can increase prices. In extreme cases, political instability can lead to hyperinflation, as seen in developing countries [19].…”

Section: Plos Onementioning

confidence: 99%

“…The impact of inflation on income inequality is another area of research interest. Rising inflation rates may disproportionately affect the poor due to their limited access to financial services resulting in lower income and higher relative prices of essential goods [7,13,[19][20][21], find empirical evidence indicating that inflation exacerbates income inequality, widening the welfare gap between the rich and the poor. However, further research is needed to provide a comprehensive understanding of the nuanced relationship between inflation and income inequality in the Ethiopian context.…”

Section: Introductionmentioning

confidence: 99%

Nexus between inflation, income inequality, and economic growth in Ethiopia

Ali,

Asfaw

2023

PLoS ONE

View full text Add to dashboard Cite

The relationship between inflation, income inequality, and economic growth is a subject of intense debate among economic researchers and policymakers. This study aims to analyze this relationship in Ethiopia using advanced statistical techniques such as VEC (vector error correction) model with Granger causality, and Johansen’s cointegrated. The study covers the period from 1980 to 2022 and includes pre and post-estimation diagnosis tests to ensure the accuracy of the model. The results indicate the presence of a long-run relationship among inflation, income inequality, and economic growth, as confirmed by Johansen’s cointegrated test. Additionally, the vector error correction model shows a strong long-run relationship between economic growth, income inequality, and inflation. In the short run, there is a significant association between income inequality and economic growth, as well as between inflation and economic growth. The Granger causality test reveals a bidirectional causality between economic growth and income inequality and between economic growth and inflation. However, there is a unidirectional causality from inflation to income inequality. Based on these findings, it is suggested that the government should implement various strategies and policies, including redistribution policies, social safety nets, promoting inclusive economic growth, coordinating effective monetary and fiscal policies, implementing progressive taxation, and reforming the labor market.

show abstract

Inflation and income inequality: does the level of income inequality matter?

Cited by 9 publications

References 22 publications

Trade Liberalization, Education, Inflation, FDI, and Urbanization: Implications for Income Inequality in the Developing World

Trade Liberalization, Education, Inflation, FDI, and Urbanization: Implications for Income Inequality in the Developing World

An empirical analysis of inflation's influence on income inequality in Lithuania

Nexus between inflation, income inequality, and economic growth in Ethiopia

Contact Info

Product

Resources

About