Essays on Top Income Inequality

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Book Synopsis Essays on Top Income Inequality by : Jihee Kim

Download or read book Essays on Top Income Inequality written by Jihee Kim and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Top income inequality, defined as the income gap within the top 1% income group, has been rising in the United States since the 1980s but remained low and stable in economies like France and Japan. Why? This dissertation studies what might have affected the widening income gap in the United States as well as the cross-country differences. The first chapter considers the most natural candidate: the effect of the top marginal tax rate on the high-income taxpayers. Identifying endogenous human capital accumulation as a link between top marginal tax rates and top incomes, this chapter shows that a decline in the top marginal tax rate can increase top income inequality as well as top incomes. We develop an infinite-horizon, heterogeneous agent model, where human capital accumulation is endogenously characterized by a proportional random growth process. If the top marginal tax rate declines, the benefit of human capital investment will increase, thereby increasing the growth rate of human capital. Since this growth rate pins down the Pareto inequality measure of the top income distribution, a decrease in the top marginal tax rate will lead to a more unequal Pareto income distribution, while simultaneously increasing every top income. When calibrated to the U.S. income data, the model finds that the reduction of the top marginal tax rate from 60% to 35% can account for 46.6% of the increase in top income inequality and 41.0% of the increase in the top 1% income share between 1980 and 2010. The second chapter theoretically examines three other candidates: the rise in the rate of top income growth, the direction of technological change, and misallocation of top talents to firms. The first model shows that if the growth rate of top incomes increases either by the rise in the returns to experience or by the rise in human capital accumulation effort, the top income inequality increases. The second model studies the direction of technological change and shows why the technological changes can be "talent-biased" at least along a transition path. The last model shows that top income inequality can increase when the matching between firms and talent becomes more efficient. This suggests that the rise in top income inequality in the United States may reflect an improvement in the allocation of talent.

Inequality and Economic Policy

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Publisher : Hoover Press
ISBN 13 : 0817919066
Total Pages : 238 pages
Book Rating : 4.8/5 (179 download)

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Book Synopsis Inequality and Economic Policy by : Tom Church

Download or read book Inequality and Economic Policy written by Tom Church and published by Hoover Press. This book was released on 2015-12-01 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing from a 2014 Hoover Institution Conference on Inequality in honor of Gary Becker, a group of distinguished contributors explore various measures of inequality in America and address the issue of whether or not it is increasing. In looking at this question and examining policy implications, the authors draw on research on human capital and intergenerational mobility. The authors suggest that the emphasis on inequality and redistribution, while not wrong, is nevertheless misplaced, for it may lead us to adopt policies that will disrupt the progress we have made while doing nothing to promote the kind of growth that is essential to national progress.

Essays on International Economic Inequality

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Total Pages : 0 pages
Book Rating : 4.:/5 (144 download)

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Book Synopsis Essays on International Economic Inequality by : Ariun-Erdene Bayarjargal

Download or read book Essays on International Economic Inequality written by Ariun-Erdene Bayarjargal and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inequality has been increasing in recent years, both in developed and developing countries. There is, however, still much to be understood on the determinants of inequality at an international level. This thesis aims to contribute to the income inequality literature by focusing on three measures of economic inequality - the Gini coefficient, top income shares, and the middle class income share. Thus, the thesis consists of three core chapters and a concluding chapter which summarises the key findings and suggests further research. The main approach of this thesis is empirical in nature, but the model formulations are well informed by the existing literature. The empirical analysis is based on annual panel-data. The country and time coverage, however, differ due to the data availability. The first substantive chapter (Chapter 2) investigates the dependence of income inequality on social and political inequality, in the presence of the Kuznets inverted-U curve hypothesis. The literature in development economics, political economics, and sociology suggests that income, social, and political inequality are interdependent. The main findings are that an inverted-U curve exists between income inequality (measured by the Gini coefficient) and GDP per capita. Income inequality increases as social and political inequality rise. The effects, however, become reversed when social and political inequality are interacted. While this study is the initial attempt to examine the joint determination of social and political inequality for income inequality, the findings are, overall, consistent with the theoretical and empirical literature. The second paper (Chapter 3) examines the evolution of top income shares using long-term historical data and finds new evidence on the relationship between economic growth and income inequality. In particular, the novelty of this study is the estimation of an asymmetric response of top income shares to different phases of economic growth. The results indicate that top income earners benefit during upturns in economic growth, but do not significantly suffer when the economy has a downturn in growth. In addition, the relationship between inequality (as measured by top income shares) and per capita income presents a U-shaped, instead of inverted-U, curve. This finding contributes to the literature on the Kuznets hypothesis and suggests that the relationship between inequality and per capita income needs to be further examined using different measures of inequality. Moreover, our result supports the persistence of inequality. The third paper (Chapter 4) explores the determinants of the middle class income share. While the middle class is largely neglected in the literature, its importance in economic development and poverty reduction is undeniable. This study contributes to a small, but growing literature on the middle class by examining the potential determinants of the middle class income share. The estimation results suggest that a country tends to have smaller middle class income share if its initial income distribution is skewed. This is consistent with the existing evidence. Economic growth has no significant impact on the middle class income share. The results support the inverted-U curve relationship between inequality and per capita income while the turning-point is relatively small.

Three Essays on Income Inequality

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ISBN 13 :
Total Pages : 224 pages
Book Rating : 4.:/5 (11 download)

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Book Synopsis Three Essays on Income Inequality by : Anjan Kumar Saha

Download or read book Three Essays on Income Inequality written by Anjan Kumar Saha and published by . This book was released on 2015 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contains three essays on income inequality. The underlying theme is to investigate the relationship of income inequality with political instability, economic growth, and financial development. To this end, the first study aims to explore the relationship of income inequality with political instability. Motivated by the observation that politically unstable countries tend to have wide income gaps, the study explores the possibility that major source of political instability is income inequality, which can be traced back to the history of early development across the globe. Using data for 95 countries, the estimates provide support for the notion that before 1500 CE early development of our ancestors, and after 1500 CE colonization, and evolution of institutions can explain today's income inequality, which subsequently affects political stability of a country. Irrespective of the subsamples used, the results confirm highly significant impact of unequal income distribution on political instability. The second study investigates the endogeneity between income inequality and economic growth, which seems to be impregnable in the literature. Motivated by Spolaore and Wacziarg's (2009) influential idea that genetic distance of population between countries puts barrier to the diffusion of development, this work constructs weighted average growth of other countries as instruments for economic growth that can explain inequality across the countries. The weights come from genetic and geographic distances between two countries. Income growth per capita is instrumented to find growth's impact on the top income shares first, and then the residuals of the regression are used as instruments for the top income shares to identify the net impact of top income shares on economic growth in the subsequent regressions. Using top income data of fourteen OECD countries for around hundred years, the estimates provide support to the view that growth reduces top income shares; however, top income shares in turn enhances economic growth. The third study explores the possibility of financial development as a major determinant of top income shares in the OECD countries. In a century long panel of time series data of top income shares and financial development, the work attempts to capture the impact of financial development on the income distribution of the top income strata. Couple of dynamic models has been used to check the robustness of our hypothesis in favour of financial development as a major source of rise in the top income shares. The results show that a one standard deviation rise in financial development, measured by private credit-GDP ratio, is associated with an increase of the top 1% income shares by around 0.3 standard deviation of its own. The effects are also robust to the other measures of top income shares.

Three Essays on Inequalities in Income and Health

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (654 download)

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Book Synopsis Three Essays on Inequalities in Income and Health by : Jeff Larrimore

Download or read book Three Essays on Inequalities in Income and Health written by Jeff Larrimore and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation considers several aspects of the distribution of income and income inequality. It does so by improving estimates of inequality between demographic groups, analyzing factors contributing to US income inequality trends, and estimating the impact of income on health outcomes for individuals in the lower tail of the income distribution. Most empirical studies of earnings and income inequality across demographic groups are based on data from the public use March CPS. However, censoring of high incomes in this data prevent researchers from observing the full distribution. The first essay uses internal CPS data to illustrate how topcoding results in the understatement of income and earnings gaps between men and women, Blacks and Whites, and people with and without disabilities. It also demonstrates how a new series of mean incomes for topcoded observations can be used in conjunction with public use CPS data to closely approximate these internal results. The second essay considers the factors accounting for trends in household income inequality. Using a shift-share approach, this essay analyzes whether income inequality shifts are accounted for by male and female earnings distribution changes or by changing household characteristics. It illustrates that the factors contributing to the rapid rise in household income inequality in the 1970s and 1980s differ substantially from those contributing to slower increases in the 1990s. In contrast to findings for the 1970s and 1980s, in more recent years increases in male earnings inequality largely account for household income inequality trends while declines in the correlation of spouses' earnings have mitigated household income inequality growth. The final essay shifts from considering income inequality to the impact that income has on the health of low income individuals. Health economists have long observed a positive relationship between health and income but the reason for this relationship is unclear. Using exogenous variation in income from state-level differences in the Earned Income Tax Credit, it observes the impact on morbidity of an exogenous increase in income for low income individuals. The results find only weak evidence that the increases in income result in improvements in self-reported health status or the prevalence of functional limitations.

Essays on the Determinants of Income and Wealth Inequality in the United States

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Book Synopsis Essays on the Determinants of Income and Wealth Inequality in the United States by : Shin Chang

Download or read book Essays on the Determinants of Income and Wealth Inequality in the United States written by Shin Chang and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relevant factors that drive income and wealth inequality in the United States with the aim of facilitating a better understanding of the dynamic relationships between inequality and key macroeconomic variables. This can serve as a prerequisite to the ability of policymakers to restrain the negative externalities associated with increasing inequality and implement measures to reduce the unexpected effects. The thesis consists of five independent papers corresponding to five chapters. As economic growth is a primary goal of every country and widely accepted tool for reducing economic inequality, our study starts with economic growth. The first paper examines the relationship between the U.S. per capita real GDP and income inequality over the period 1917 to 2012. The literature uncovers a complex set of interactions, which depends on the specific research method and sample, between inequality and economic growth and highlights the difficulty of capturing a definitive causal relationship. Inequality either promotes, retards, or does not affect growth. Most existing studies that examine the inequality-growth nexus exclusively utilize time-domain methods. We use wavelet analysis which allows the simultaneous examination of correlation and causality between the two series in both the time and frequency domains. We find robust evidence of positive correlation between the growth and inequality across frequencies. Yet, directions of causality vary across frequencies and evolve with time. In the time-domain, the time-varying nature of long-run causalities implies structural changes in the two series. These findings provide a more thorough picture of the relationship between the U.S. per capita real GDP and inequality measures over time and frequency, suggesting important implications for policy makers. Inflation targeting is a monetary policy where the central bank sets a specific inflation rate as its goal. The federal government spurs economic growth by adding liquidity, credit, and jobs to the economy and inflation stimulate the demand needed to drive economic growth. The second paper investigates the effects of the inflation rate on income inequality to see whether monetary policy and the resulting inflation rate can affect income inequality and improve the well-being of individuals. Our analysis relies on a cross-state panel for the United States over the 1976 to 2007 period to assess the relationship between income inequality and the inflation rate, employing a semiparametric instrument variable (IV) estimator. By using cross-state panel data, we minimize the problems associated with data comparability often encountered in cross-country studies related to income inequality. We find that the relationship depends on the level of the inflation rate. A positive relationship occurs only if the states exceed a threshold level of the inflation rate. Below this value, inflation rate lowers income inequality. The results suggest that a nonlinear relationship exists between income inequality and the inflation rate. The researchers also examine the relationship between income inequality and growth in personal income, since personal income exerts a large effect on consumer consumption, and since consumer spending drives much of the economy. The third paper investigates the causal relationship between personal income and income inequality in a panel data of 48 states for the period of 1929-2012. Although inequality rose almost everywhere between 1980 to present, some states and regions experienced substantially greater increases in inequality than did others. The decentralization allows different state level of policies, however, there is also a cross-state consistency in how those policies respond to the main economic shocks. Since U.S. states are subject to significant spatial effects given their high level of integration, ignoring cross-sectional dependency may lead to substantial bias and size distortions. We employ a causality methodology proposed by Emirmahmutoglu and Kose (2011), as it takes into account possible slope heterogeneity and cross-sectional dependency in a multivariate panel. Evidence of bi-directional causal relationship exists for several inequality measures -- the Atkinson Index, Gini Coefficient, the Relative Mean Deviation, TheiliÌ8℗¿℗ưs entropy Index and Top 10% -- but no evidence of the causal relationship for the Top 1 % measure. Also, this paper finds state-specific causal relationships between personal income and inequality. The level of development of the United States is related to the sophistication of the financial structure which influences the ability to hedge against shocks and to loosen spending constraints. It leads us to investigate if the financial development affects income inequality in the U.S. In the fourth paper, we look into the role of financial development on U.S. state-level income inequality in a panel data of 50 states from 1976 to 2011. To our knowledge, this paper is the first regarding examining the role of financial development on U.S. state-level inequality. We analyze the data using Fixed Effect and Dynamic Fixed Effect regression. We also divide 50 states into two groups-states, with higher inequality measure and states with lower inequality measures than average of the cross-state average of the inequality, to examine the possible nonlinear impact of financial development on income inequality. We find robust results whereby financial development linearly increases income inequality for the 50 states. When we divide 50 states into two separate groups of higher and lower inequality states than the cross-state average inequality, the effect of financial development on income inequality appears non-linear. When financial development improves, the effect increases at an increasing rate for high income inequality states, whereas an inverted U-shaped relationship exists for low-income inequality states.

Essays on the Economic, Demographic, and Social Dynamics of Income Inequality in the United States

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (134 download)

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Book Synopsis Essays on the Economic, Demographic, and Social Dynamics of Income Inequality in the United States by : Jaclyn Butler

Download or read book Essays on the Economic, Demographic, and Social Dynamics of Income Inequality in the United States written by Jaclyn Butler and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the economic, demographic, and social dynamics of income inequality in the United States. Income inequality is high, and rising, in the United States. Given that income inequality is associated with adverse societal outcomes, it is important to understand the causes and consequences of income inequality. The first chapter examines the effects of manufacturing employment on inequality in U.S. counties, and builds on prior research by disaggregating this sector into the durable and non-durable subsectors. I find that the effects of each subsector vary over time (1990 to 2016) and by county rural-urban status. The protective effects of both durable and nondurable manufacturing have weakened over time in both rural and urban counties, but disproportionately so in urban counties. By the end of the study period, the protective effect of both subsectors was only detected in rural counties. The second chapter examines the effects of population aging on income inequality in U.S. commuting zones and examines whether these effects vary between the mechanisms of aging: aging-in-place and retirement migration. Income inequality is measured as change in the overall level of income inequality and as the shifting shape of the income distribution from 2000 to 2010. I find evidence that population aging's effect on income inequality varies by the aging mechanism. Population aging in the context of aging-in-place decreases income shares in the middle of the distribution. Population aging in the context of retirement migration increases the overall level of income inequality, decreases income shares at the bottom of the distribution, and increases income shares at the top of the distribution. The third chapter examines whether and how people living and working in a high-inequality context perceive the economic and social dynamics of income inequality. Using a case study approach, this chapter uses interview data from 12 study participants to understand the perceptions, causes, and consequences of income inequality in Hancock County, Maine. The findings indicate that participants accurately perceive that income inequality is high, and increasing, in Hancock County. Participants discussed the community's status as a New England summer colony and major tourist destination, which concentrates employment growth in the lower-wage and seasonal service industry. Participants also expressed concern that the housing affordability crisis and the AirBnB economy have hollowed out the sense of community among working- and family-aged residents with lower to moderate incomes. These three papers provide unique insight into the economic, demographic, and social dynamics of income inequality. Their distinctive contributions include analysis of the underlying components of two major economic and demographic processes in the United States (deindustrialization and population aging), as well as qualitative insight into the social dynamics of income inequality in a high-inequality context.

Causes and Consequences of Income Inequality

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Publisher : International Monetary Fund
ISBN 13 : 1513547437
Total Pages : 39 pages
Book Rating : 4.5/5 (135 download)

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Book Synopsis Causes and Consequences of Income Inequality by : Ms.Era Dabla-Norris

Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.

Three Essays on Income Inequality

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (76 download)

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Book Synopsis Three Essays on Income Inequality by : Gulgun Bayaz Ozturk

Download or read book Three Essays on Income Inequality written by Gulgun Bayaz Ozturk and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Two essays on the correlation between economic growth and income inequality

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (14 download)

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Book Synopsis Two essays on the correlation between economic growth and income inequality by : Liang Shao

Download or read book Two essays on the correlation between economic growth and income inequality written by Liang Shao and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on Income Inequality, Poverty and Mobility

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ISBN 13 :
Total Pages : 150 pages
Book Rating : 4.:/5 (725 download)

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Book Synopsis Essays on Income Inequality, Poverty and Mobility by : Timm Bönke

Download or read book Essays on Income Inequality, Poverty and Mobility written by Timm Bönke and published by . This book was released on 2010 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Three Essays on Income Inequality and Economic Growth

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ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (119 download)

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Book Synopsis Three Essays on Income Inequality and Economic Growth by : Aoyu Hou

Download or read book Three Essays on Income Inequality and Economic Growth written by Aoyu Hou and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on Income Inequality and Environmental Outcomes in Metropolitan America

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Book Synopsis Essays on Income Inequality and Environmental Outcomes in Metropolitan America by : Alicia Cavanaugh

Download or read book Essays on Income Inequality and Environmental Outcomes in Metropolitan America written by Alicia Cavanaugh and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "Income inequality has increased significantly in more than three quarters of OECD countries over the last few decades (OECD, 2011). This rise in inequality has been particularly pronounced in the United States, and especially so across urban areas where the average metropolitan total income Gini coefficient rose from .45 to .52 over the 1980 to 2010 period. During this time, the increasingly uneven distribution of income reflects the pulling away of high-income earners with the top decile share of income rising from 35% to nearly 50%. Such an increase in inequality has far-reaching effects, undermining political, economic, social and environmental stability. The processes that drive inequality, working simultaneously at the global and local scales, take place in and shape the environment. This thesis examines trends in metropolitan income inequality in the United States and its relationship to environmental inequality by asking two overarching questions: 1) how is income inequality distributed across metropolitan areas in the US and how have these patterns changed over time? and (2) how is metropolitan income inequality related to environmental inequality in the US? The systematic review (Chapter 2) shows that as income inequality has grown, there has been a commensurate growth in the literature, especially since the mid- to late-1990s. Researchers from a multitude of disciplines have sought to further our understanding of income inequality, examining both the (i) causes of and (ii) consequences of rising inequality from a variety of perspectives. Indeed, the review finds that one of the hallmarks of the literature is a growing trend towards interdisciplinary and multidimensional approaches to the study of inequality as roughly half of the top journals publishing work on both the causes and consequences of inequality cut across traditional disciplinary boundaries. Findings also suggest there is a need for a better understanding of the dynamics of inequality at the metropolitan level.To shed light on these dynamics, this thesis uses the Census Bureau’s Integrated Public Use Microdata Series (IPUMS) to build a unique large-scale comparative dataset for 226 Metropolitan Statistical Areas (MSAs) in the US (Chapter 3). In terms of our understanding of the drivers of metropolitan inequality, modeling results suggest that education has the strongest impact on rising inequality; metropolitan areas with greater educational dispersion typically have higher levels of inequality, while increasing educational differences within metropolitan areas drive internal growth in inequality. Racial segregation is also linked to increasing inter-metropolitan inequality; places with greater levels of segregation are more unequal, and deepening segregation within metropolitan areas increases inequality. On the consequences side, much of the literature has focused its efforts on understanding the health outcomes of inequality. Much less attention has been paid to the potential environmental outcomes of higher inequality, particularly from an inter-metropolitan comparative perspective. To this effect, the panel model results presented in Chapter 4 are mixed. On the one hand, the examination of the long-run inequality-environment connection highlights a positive relationship between environmental degradation and inequality across US cities. On the other hand, short-term models show that while an increase in metropolitan inequality is associated with decreasing degradation, deepening segregation continues to be linked with increasing levels of pollution. These cross-city results lend further support to existing state-level and intra-metropolitan case study findings in the US. Future research should work toward obtaining better quality environmental degradation and pollution data at the metropolitan level in order to better parse out the connections between rising inequality and environmental outcomes"--

Essays on the Macroeconomics of Inequality

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ISBN 13 :
Total Pages : pages
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Book Synopsis Essays on the Macroeconomics of Inequality by : Zsofia Luca Barany

Download or read book Essays on the Macroeconomics of Inequality written by Zsofia Luca Barany and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contains three essays on the macroeconomics of inequality. The first chapter analyses the effects of minimum wages on inequality. While there has been intense debate in the empirical literature about the effects of minimum wages on inequality in the US, its general equilibrium effects have been given little attention. In order to quantify the full effects of a decreasing minimum wage on inequality, I build a dynamic general equilibrium model, based on a two-sector growth model where the supply of high-skilled workers and the direction of technical change are endogenous. I find that a permanent reduction in the minimum wage leads to an expansion of low-skilled employment, which increases the incentives to acquire skills, thus changing the composition and size of high-skilled employment. These permanent changes in the supply of labour alter the investment ow into R & D, thereby decreasing the skill-bias of technology. The reduction in the minimum wage has spill-over effects on the entire distribution, affecting upper-tail inequality. Through a calibration exercise, I find that a 30 percent reduction in the real value of the minimum wage, as in the early 1980s, accounts for 15 percent of the subsequent rise in the skill premium, 18.5 percent of the increase in overall inequality, 45 percent of the increase in inequality in the bottom half, and 7 percent of the rise in inequality at the top half of the wage distribution. In the second chapter, I construct a model, where the supply of skills and the skill premium can increase jointly, as occurred in the US over the past few decades. I high- light the importance of the joint determination of the direction of technical change and skill formation. There is a positive feedback between these two variables. Technological progress is driven by profit oriented R & D firms, where profits are increasing in the amount of labour that is able to use these technologies. Therefore, when the supply of high-skilled 3labour increases, technology endogenously becomes more skill-biased. A more skill-biased technology leads to a higher skill premium, which increases the incentives to acquire educa- tion, and the supply of high-skilled labour rises. During the transition to the steady state, both quantities increase simultaneously. I map the dependence of the transition path of the economy on the initial skill supply and relative technology between the high- and the low-skilled sector. I find that, contrary to the previous literature, the skill premium and the skill supply can increase jointly even if the bias of technology is weak. In the third chapter, I relate the degree of progressivity of the income tax scheme to the prevailing income inequality in the society. I find that, consistent with the data, more unequal societies implement more progressive income tax systems. I build a model of political coalition formation, where different income groups have to agree on a tax scheme to finance the public good. I show that, the greater income inequality is, i.e. the further away the rich are from the rest of the population, the less able they are to credibly commit to participating in a coalition. Therefore, as income inequality rises, the rich are increasingly excluded from the design of the income tax scheme. Consequently, the rich bear a larger fraction of the public good, and the tax system becomes more progressive.

Innovation and Inequality

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Publisher : Edward Elgar Publishing
ISBN 13 : 1781951675
Total Pages : 357 pages
Book Rating : 4.7/5 (819 download)

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Book Synopsis Innovation and Inequality by : Susan Cozzens

Download or read book Innovation and Inequality written by Susan Cozzens and published by Edward Elgar Publishing. This book was released on 2014-05-30 with total page 357 pages. Available in PDF, EPUB and Kindle. Book excerpt: Susan Cozzens, Dhanaraj Thakur, and the other co-authors ask how the benefits and costs of emerging technologies are distributed amongst different countries _ some rich and some poor. Examining the case studies of five technologies across eight countri

Essays on Social Factors Related to United States Income Inequality

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Publisher :
ISBN 13 : 9780549042754
Total Pages : 114 pages
Book Rating : 4.0/5 (427 download)

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Book Synopsis Essays on Social Factors Related to United States Income Inequality by : Ilyana Maria Kuziemko

Download or read book Essays on Social Factors Related to United States Income Inequality written by Ilyana Maria Kuziemko and published by . This book was released on 2007 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first essay considers the removal of the parole board's authority to release prisoners before the expiration of their sentence, a policy many states have adopted. I find that this reform discourages prisoners from making human-capital investments while incarcerated and increases recidivism upon release. Thus, not only have more Americans spent time in prison since the 1970s, they have done so in institutions with a diminishing ability to rehabilitate inmates.

Essays on Financial Development and Income Inequality

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ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

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Book Synopsis Essays on Financial Development and Income Inequality by : Nahid Farnaz

Download or read book Essays on Financial Development and Income Inequality written by Nahid Farnaz and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: