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Desarrollo económico y desigualdad de ingresos: acceso a la evidencia desde la perspectiva de la hipótesis de Kuznets para una muestra global

Author

Listed:
  • Quito, Byron

    (Universidad Nacional de Loja)

  • Ochoa-Moreno, Wilman-Santiago

    (Universidad Técnica Particular de Loja)

  • Álvarez-García, José

    (Universidad de Extremadura)

  • Del Río Rama, María de la Cruz

    (Universidad de Vigo)

Abstract

This research examines the non-linear relationship between economic development and income inequality by using a balanced panel of 113 countries during 1985–2017. The countries are grouped into four subsamples: 45 high-income countries (HIC), 32 upper-middle-income countries (UMIC), 26 lower-middle-income countries (LMIC), and 10 low-income economies (LIC). The Gini indexes before and after taxes and transfers are used as proxies for income inequality, while economic development is represented by the level of real production per capita (GDP). Several panel data estimation techniques are applied, in addition to using second-generation cointegration techniques. Cross-sectional dependence (CD) is considered to examine the long-term non-linear relationship, and, finally, causality tests are applied to developing policy implications. We find there are long-term relationships between economic development and income inequality, before and after taxes and transfers. Interestingly, when considering the subgroups for the analysis, economic development generates different effects for each group. In particular, there seems to be an inverted U-shaped relationship in the HIC, UMIC, and LMIC groups. However, the second inequality measure, after taxes and transfers, is valid throughout the panel and for all groups of countries. This study proposes potential political implications, which require a deeper understanding of the distribution mechanisms between countries. By considering subsamples, we show that income inequality could distort economic growth.

Suggested Citation

  • Quito, Byron & Ochoa-Moreno, Wilman-Santiago & Álvarez-García, José & Del Río Rama, María de la Cruz, 2025. "Desarrollo económico y desigualdad de ingresos: acceso a la evidencia desde la perspectiva de la hipótesis de Kuznets para una muestra global," El Trimestre Económico, Fondo de Cultura Económica, vol. 92(366), pages 477-514, April-Jun.
  • Handle: RePEc:elt:journl:v:92:y:2025:i:366:p:477-514
    DOI: https://doi.org/10.20430/ete.v92i366.2388
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    More about this item

    Keywords

    Inequality income; Kuznets; global sample; panel data; cointegration.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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