Poverty, inequality, and development: A distributional approach

Economists have concentrated on aggregate economic growth to measure countries' development progress and in recent years have also considered income distribution performance. This paper reverses the conventional emphasis by placing income distribution at the forefront. I examine what is known about the distributions of income and poverty in the developing countries of the world and probe the correlations between poverty, inequality, and development. I explore the main sources of inequality and the extent to which individual countries have managed to alleviate poverty and reduce inequality in the course of economic growth. Employing evidence from case studies of six developing nations. I suggest some explanations for differing patterns of development and call for development planning founded on a firm commitment to helping the poor.     

Public Policy,Economic Inequality,and Poverty: The United States in Comparative Perspective*

Objective. This article compares recent levels and trends in economic inequality in industrialized nations, largely those belonging to the Organization for Economic Cooperation and Development. We also examine the effects of government policies and social spending efforts on inequality. Method. We use data from the Luxembourg Income Study and the U.S. Congressional Budget Office to measure disposable money income on an annual basis for 30 nations around the end of the 20th century. We also convert the incomes of a set of rich nations into real 2000 U.S. dollars, using a standard measure of purchasing power parity to examine absolute differences in income inequality. Results. The United States has the highest overall level of inequality of any rich OECD nation at the beginning of the 21st century. Moreover, increases in the dispersion of total household income in the United States have been as large as, or larger than, those experienced elsewhere between 1979 and 2002. Government policies and social spending have lesser effects in the United States than in any other rich nation, and both low spending and low wages have a great impact on the final income distribution, especially among the nonelderly. Conclusion. We speculate on the role policy plays in the final determination of income inequality. We argue that these differences cannot be explained by demography (single parents, immigrants, elders) but are more likely to be attributed to American institutions and lack of spending effort on behalf of low‐income working families.     

收入不平等对中国居民幸福感的影响及其机制研究

本文立足于社会规范视角,以中国综合社会调查(CGSS)数据为基础,考察与分析区域层次的收入不平等对居民幸福感的影响及其机制。结果显示,当前中国的收入不平等会损害个人对幸福的积极体验。与高收入群体相比,低收入群体更容易产生这种负向感知。相对剥夺和关系信任构成的社会心理过程是影响收入不平等与个人幸福感关系的重要机制,资源供给机制未获调查数据的支持。在此基础上,本文认为,国民幸福感的高低并非取决于收入不平等本身,而是分配体系构建的合理性。所以,建立具有公平正义价值导向的收入分配体系是提升中国居民幸福感的发展方向。     

收入不平等与个体健康——基于2005年中国综合社会调查的实证分析

文章利用2005年中国综合社会调查（CGSS2005）数据与县级社会统计资料,通过拟合多层Logistic回归模型,分析了地区收入不平等程度对个体健康状况的影响,系统检验了绝对收入理论和收入不平等理论。结果表明,即使在控制了个体收入对健康的凹陷效应之后,县级收入不平等程度仍对个体自评健康具有显著的负面影响。对收入不平等影响健康的作用机制的进一步分析表明,社会心理机制仅能部分解释不平等对健康的负面效应,而新唯物主义机制未能得到经验支持。     

Distributional orderings: an approach with seven flavors

We examine individuals?? distributional orderings in a number of contexts. This is done by using a questionnaire-experiment that is presented to respondents in any one of seven ??flavors?? or interpretations of the basic distributional problem. The flavors include inequality, risk, social welfare and justice.     

Income and Power Inequality as Determinants of Environmental and Health Outcomes: Some Findings*

Objective. The article corrects for two main shortcomings in conventional economic analyses of environmental change. First is the overemphasis placed on income growth, and general disregard for other socioeconomic factors. Second is economists' often oversimplified view of the environment, where distinctions between environmental necessities such as potable water and so‐called environmental luxuries are ignored. I test for the effectiveness of power inequality in explaining access to sanitation and safe water as well as their health consequences. Methods. I develop a two‐stage model seeking first to explain changes in the environmental variables and then population health. I employ ordinary least squares regressions on international cross‐sectional data. Results. Some dimensions of power inequality outperform per‐capita income as possible determinants of population health. Neither power inequality nor income is clearly superior at explaining environmental quality. Conclusion. The study casts further doubt on the importance of per‐capita income in explaining environmental and health outcomes.     

Behavioral responses and the distributional effects of the Russian ‘flat’ tax

This paper simulates the distributional impact of the Russian personal income tax (PIT) following the flat tax reform of 2001 using data from the Russian Longitudinal Monitoring Survey. I decompose the change in the distribution of net income into a direct (tax) effect and an indirect effect. The indirect effect is further decomposed into evasion and productivity effects using existing estimates of these respective elasticities. As expected, the direct tax effect increased net income inequality. Changes in the pre-tax distribution (indirect effect), on the other hand, had a large negative impact on inequality thus leading to an overall decline in net income inequality. I also find that the tax-induced evasion response increased reported net income inequality while reducing consumption inequality. To the extent that consumption approximates actual income, these results demonstrate that the flat tax reform had a much smaller effect on actual income inequality than on reported income inequality. More importantly, relative to non-tax factor, the reform had little overall effect on income inequality. This suggests that objection to flatter tax schedules on the grounds of income inequality is mostly misguided, especially in transitional countries with high levels of evasion.     

Multidimensional Inequality in South Korea: An Empirical Analysis

The objective of this study is to review the theoretical limitations of single dimensional approaches for measuring inequality and to prove the effectiveness and practicality of the concept of “multidimensional inequality” by analyzing the inequality embedded in Korean society. This study constitutes nine dimensions of inequality (income, education, health, employment, social capital, leisure, work‐family reconciliation, housing, and social security) and analyzes inequality through the lens of each dimension by using data from of the first to fifth wave of the Korea Welfare Panel Study. The findings show a high degree of correlation among the dimensions of income, education, health, and social capital. However, work‐family reconciliation and housing have a relatively low correlation with income and the other dimensions. Second, multidimensional disparities were found between the groups of gender, age, and region. In conclusion, this study found a high degree of overlap between the concepts of income‐oriented inequalities and the multidimensional inequality approach. By capturing the notions of the multidimensional disparities that exist in each of the different groups, this study confirmed the effectiveness of multidimensional inequality as a useful concept for informing the creation of social policy intervention to alleviate inequality.     

Impact of socio-economic infrastructure investments on income inequality in Iran

One of the main subjects, governments have been facing is fair distribution of income, and making effort to improve it. In this study, we evaluated the effects of economic (energy, water, ICT) and social (health, education) infrastructure expenses on income inequality in the Iranian provinces for the period of 2007–2016 by the panel corrected standard errors (PCSE) model. The results show that social and economic infrastructures improvements reduce income inequality. However, the magnitude of these effects varies. Investment on education, healthcare, communication technology, energy, and water infrastructures has the greatest impact on income inequality reduction, respectively. Therefore, in order to reduce inequality in deprived areas, combination and optimal allocation of economic and social infrastructures should be considered.     

Welfare State Changes and Outcomes – The Cases of Portugal and Denmark from a Comparative Perspective

It is well known that welfare states ensure a certain level of social protection affecting levels of well‐being and the extent of inequalities in society. Changes within crucial domains of social policy, such as education, health, or social protection, have, therefore, a major effect upon individuals' opportunities. In this article I compare the effects of these changes in two countries from the mid‐1980s to the financial crisis of 2008. Portugal that was a latecomer in welfare state development and Denmark was at the forefront of de‐commodification and universalization of social rights. The conclusion of this article is that income inequality has been steadily increasing in Danish society; while in Portugal, despite improvements in many social domains (healthcare, poverty alleviation, unemployment protection), problems of inequality remain deeply embedded in the country's social and institutional structures.     

Inequality in Social Insurance Participation and Generosity: Do Firm Characteristics Matter?

Income inequality in China has been much documented and debated. However, one important aspect of income inequality – social insurance inequality – has been largely understudied. We use a large national panel of firm data to examine the possible influence of various firm characteristics on the inequalities in social insurance participation and generosity in the period 2004–07. Our findings reveal substantial ownership sector and regional gaps in social insurance provision by firms, with the private domestic sector and those in the central region lagging behind. Unionized firms, larger firms, and firms with greater market shares also tend to provide better social insurance to their employees. While being an exporting firm is linked with greater social insurance participation and generosity, being a purely exporting firm, however, is associated with reduced social insurance generosity. Lastly, highly educated workers receive substantially better social insurance coverage than their less educated peers. These social insurance inequalities are highly relevant as China pushes forward with establishing a unified social insurance system across urban‐rural boundaries, ownership sectors and industries.     

State Income Inequality and Presidential Election Turnout and Outcomes*

Objective. This study examines the links among income inequality, voter turnout, and electoral choice at the state level in recent presidential elections. Methods. We introduce two new state‐level ecological data sets, estimated annual Gini coefficients of income inequality from 1969 to 2004 and a measure of income segregation across Census tracts within states in 1999. We test for associations among inequality, turnout, and party preference with cross‐sectional, fixed‐effects, and multilevel analyses. Results. The cross‐sectional effect of inequality on voter turnout and electoral choice is ambiguous. However, a fixed‐effects analysis links higher income inequality to lower voter turnout and also to a stronger Democratic vote. Multilevel results indicate that higher levels of economic segregation likewise are associated with depressed turnout, after controlling for individual voter characteristics and for state‐level income.     

The limits of inequality: Public support for social policy across rich democracies

Does public opinion react to inequality, and if so, how? The social harms caused by increasing inequality should cause public opinion to ramp up demand for social welfare protections. However, the public may react to inequality differently depending on institutional context. Using ISSP and WID data (1980?2006), we tested these claims. In liberal institutional contexts (mostly English‐speaking), increasing income inequality predicted higher support for state provision of social welfare. In coordinated and universalist contexts (mostly of Europe), increasing inequality predicted less support. Historically higher income concentration predicted less public support, providing an account of the large variation in inequality within the respective liberal and coordinated contexts. The results suggest opinions in liberal societies – especially with higher historical inequality – reached the limits of inequality, reacting negatively; whereas in coordinated/universalist societies – especially with lower historical inequality – opinions moved positively, as if desiring more inequality.     

论社会公平的主观认定

近年来,收入分配不公已成为学术圈与媒体热议的话题。但收入分配结果是否公平只是基于人们伦理和价值观基础上的一种主观判断,基尼系数既不能回答社会公平的主观认定问题,也无法预言哪些群体将会影响社会的稳定。本文通过对北京居民公平感的实证研究说明20年来北京市居民的公平观发生了根本性的转变,人们对收入分配差距的承受力有所增强也有所区别。在贯彻党中央"提低,扩中,调高"的公平目标时,政府的主要工作既包括规范和整顿市场分配秩序,同时也应在调节贫富差距时防止产生新的分配不公。     

Inequality, income, and poverty: comparative global evidence

Objectives. The study seeks to provide comparative global evidence on the role of income inequality, relative to income growth, in poverty reduction.Methods. An analysis-of-covariance model is estimated using a large global sample of 1980–2004 unbalanced panel data, with the headcount measure of poverty as the dependent variable, and the Gini coefficient and PPP-adjusted mean income as explanatory variables. Both random-effects and fixed-effects methods are employed in the estimation.Results. The responsiveness of poverty to income is a decreasing function of inequality, and the inequality elasticity of poverty is actually larger than the income elasticity of poverty. Furthermore, there is a large variation across regions (and countries) in the relative effects of inequality on poverty.Conclusion. Income distribution plays a more important role than might be traditionally acknowledged in poverty reduction, though this importance varies widely across regions and countries.     

The relationship between different social expenditure schemes and poverty,inequality and economic growth

In this article, we study how social expenditure is related to poverty, income inequality and GDP growth. Our main contribution is to disentangle these relationships by the following social expenditure schemes: 1) “old age and survivors”, 2) “incapacity”, 3) “health”, 4) “family”, 5) “unemployment and active labour market policies” and 6) “housing and others”. For this purpose, we employ OLS and 2SLS regression models using a panel data set for 22 Member States of the European Union from 1990 until 2015. We find total public social expenditure to be negatively related to poverty and inequality, but not related to GDP growth. The results vary substantially between the different social expenditure schemes, which makes more accurate targeting possible.     

Poverty statics and dynamics: does the accounting period matter?

Any public policy aimed at reducing the effects of deprivation should be aware of the consequences of the use of different income accounting periods on eligibility and subsequent policy evaluation. This study aims to throw some light on the relev-ance of choosing a specific accounting period for public policy evaluation in a European country, in contrast to the existing evidence for the United States. Our analysis indicates that there are some significant differences in the results on poverty when using different income accounting periods. Researchers and decision-makers using an annual income measure, whatever the economic and social welfare context, should be aware that the use of quarterly data instead of yearly data will lead to a significantly larger number of poor households and a lower level of inequality and mobility in the distribution.     

Inequality and social choice

This paper is concerned with the welfare and inequality rankings of income distributions whose Lorenz curves cross. A simple inequality measure is proposed which gives unambiguous results in many cases.     

Poverty,income inequality and externalised problem behaviours of children: an empirical study in Korea

The primary purpose of this study is to examine the effects of neighbourhood poverty and income inequality on children's externalised problem behaviours in Korea. For the analysis, we used the National Survey of Children and Youth data and employed a multilevel analysis method. The results show that income inequality level of a community is a significant factor in increasing children's externalised problem behaviours. When controlled for income inequality, poverty itself was not significantly related to the level of children's externalised problem behaviours. We provide social welfare practice and policy implications of the findings in the paper.     

Class and gender inequalities in different types of welfare states: the Social Citizenship Indicator Program (SCIP)

Korpi W. Class and gender inequalities in different types of welfare states: the Social Citizenship Indicator Program (SCIP) Int J Soc Welfare 2010: ??: ??–??© 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This article considers the role of legislated welfare state institutions as mediators of effects of political and structural forces on citizens' levels of living of relevance to inequalities in health and mortality. The focus is on institutional structures of welfare state programmes relevant to class inequality, as indicated by income inequalities, and to gender inequality, conceived of as differences in agency. I introduce the Social Citizenship Indicator Program, a database providing quantitative and qualitative information on structures of main social insurance programmes in 18 countries from 1930 to 2000, on about 300,000 data points. It is used to delineate types of distributive institutions of relevance for income inequality. Institutions relevant for gendered agency inequality affect choices by women, especially mothers, between unpaid and paid work. Driving forces behind the emergence of differences in distributive institutions are discussed, and patterns of class and gender inequalities are outlined.