Institutional quality and income inequality in the advanced countries

Josifidis, Kosta; Supic, Novica; Pucar, Emilija Beker

doi:10.2298/pan1702169j

Cited by 32 publications

(28 citation statements)

References 10 publications

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“…If the former is, over a very long run, consistently higher than the latter, then income inequality will increase. Institutions, welfare states, taxes and pro-labour policies, like those implemented between 1945 and 1975 in most advanced economies, contribute to reduce inequality or to maintain lower inequality (as also argued by Josifidis et al, 2017). Similarly, Alvaredo et al (2017) show that top income and wealth shares have increased in nearly all countries in recent decades.…”

Section: Global and National Inequalities In A Historical Perspectivementioning

confidence: 90%

Global inequality and national inequality: Is there a trade-off?

Tridico

2020

Panoeconomicus

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The objective of this paper is to show that there is a trade-off between global inequality (between countries) and national inequality (within countries). We observed that when the former declines, the latter increases. Empirically, it is possible to observe a shift from higher global inequality to lower global inequality levels (and higher national inequality levels) since the last quarter of the previous century. From a historical perspective, my thesis is that when the main drivers of economic growth are technology and means of transportation, inequality is mostly between countries (higher global inequality). In contrast, when the main driver of economic growth is labour (and related factors such as human capital, skills, knowledge exploitation), then inequality is mostly within countries (higher national inequality). Limitations of data availability did not allow for testing these historical trends. However, the trends of global and national inequalities over the last three to four decades confirm such a thesis.

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Section: Global and National Inequalities In A Historical Perspectivementioning

confidence: 90%

Global inequality and national inequality: Is there a trade-off?

Tridico

2020

Panoeconomicus

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“…But there is controversy in literature about the factors explaining institutional quality of an economy. Josifidis et al (2017) empirically examined the impacts of changes in institutional quality on income inequalities in developed countries for the last two decades. It is argued that different interests of social groups are contributing to deteriorate income inequalities but their affects are not properly analyzed because distributional impacts of innovative disruptions are ignored.…”

Section: Literature Reviewmentioning

confidence: 99%

Probing Institutional Quality Through Ethnic Diversity, Income Inequality and Public Spending

Madni

2018

Soc Indic Res

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Institutions play a vital role for smooth and sustained functioning of economies as well as to excel the living standard of economic agents but there is no consensus upon factors explaining the institutional quality. This study is an attempt of how ethnic diversity, income inequality and public spending are encompassed to affect the institutional quality, illustrated by the example of a developing country, Pakistan, applying ARDL approach covering time span of 1984-2015. It is found that ethnic diversity and income inequality are associated with deterioration of institutions and public spending is likely to improve them. Ethnic diversity has to be managed endogenously to avoid its adverse effects on institutions while there is dire need to squeeze the widening gap between rich and poor. The findings of the study reveal that public spending needs to be contribute more at present for building the institutional quality.

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“…Also, changes in the political structure, power of left-or right-wing parties and the election year, as well as institutions have important influence on public ex penditure policies (for instance, political and institutional determinants in OECD countries are explained in Miyazaki 2007, while Brady andLeicht, 2008, dealt with the power of par ties). Income inequality (United Nations, 2005;Josifidis et al, 2011;Josifidis, Supic, and Beker Pucar 2017), as well as impoverishment (Lelkes and Zolyomi, 2008) cause public policy interventions and therefore are important in explaining fiscal position across coun tries. Gibson, Palivos and Tavlas (2013) showed that fiscal balance variables were affected by global crisis differently in countries of European Union, due to absence of unique fiscal policy.…”

Section: Literature Reviewmentioning

confidence: 99%

Public Policies Influence on Fiscal Deficit in the EU-28: Common Correlated Effects Approach

Josifidis¹,

Dragutinovic²,

Glavaški³

et al. 2018

HPE-RPE

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This paper empirically investigates heterogeneous effects of different public policies (health, educa tion, pension expenditure) on fiscal deficit in the circumstances when fiscal sustainability became questionable in EU economies. The research is based on the sample of EU-28 over the period 1995 2015. The empirical analysis is conducted within the econometric framework of heterogeneous, cross sectional dependent panels, using common correlated effects approach. According to the main findings of the paper, different effects of public policies between groups of developed and emerging European economies are evident but not crucial. These effects on fiscal deficit are heterogeneous across all coun tries, with different magnitude of pension, health and education expenditure impact. Due to the popula tion ageing, pension expenditure has the most frequent and the most intensive influence on fiscal defi cit deepening, following by education expenses. It means that policymakers are facing with trade-off related to old/young population, and that they are mostly oriented toward old population (voters).

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Institutional quality and income inequality in the advanced countries

Cited by 32 publications

References 10 publications

Global inequality and national inequality: Is there a trade-off?

Global inequality and national inequality: Is there a trade-off?

Probing Institutional Quality Through Ethnic Diversity, Income Inequality and Public Spending

Public Policies Influence on Fiscal Deficit in the EU-28: Common Correlated Effects Approach

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