IDEAS home Printed from https://ideas.repec.org/a/pal/easeco/v38y2012i4p495-511.html
   My bibliography  Save this article

Fluctuations, Uncertainty and Income Inequality in Developing Countries

Author

Listed:
  • Fadi Fawaz

    (Department of Economics, Jamestown College, Jamestown, ND 58405, USA)

  • Masha Rahnamamoghadam

    (Department of Economics, Texas Tech University, Lubbock, TX 79409, USA)

  • Victor Valcarcel

    (Department of Economics, Texas Tech University, Lubbock, TX 79409, USA)

Abstract

We analyze income inequality and high frequency movements in economic activity for low and high income developing countries (LIDC and HIDC). The impact of human capital, capital formation, and economic uncertainty on income inequality for LIDC and HIDC are also evaluated. We find strong evidence that business cycle fluctuations serve to exacerbate income inequality in HIDC while they help narrow the gap in LIDC. Importantly, volatility in output widens inequality across the board but to a consistently higher degree in HIDC. Schooling helps reduce income inequality in both country groups, while investment increases income inequality. Lastly, the Kuznets inverted U-curve hypothesis is confirmed for both LIDC and HIDC.

Suggested Citation

  • Fadi Fawaz & Masha Rahnamamoghadam & Victor Valcarcel, 2012. "Fluctuations, Uncertainty and Income Inequality in Developing Countries," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(4), pages 495-511.
    • Handle: RePEc:pal:easeco:v:38:y:2012:i:4:p:495-511
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/eej/journal/v38/n4/pdf/eej201132a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/eej/journal/v38/n4/full/eej201132a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fawaz, Fadi & Rahnamamoghadam, Masha & Valcarcel, Victor, 2014. "A Refinement of the Relationship between Economic Growth and Income Inequality in Developing Countries," MPRA Paper 55268, University Library of Munich, Germany.
    2. Fadi Fawaz & Masha Rahnama & Victor J. Valcarcel, 2014. "A refinement of the relationship between economic growth and income inequality," Applied Economics, Taylor & Francis Journals, vol. 46(27), pages 3351-3361, September.
    3. Obiakor, Rowland & Akpa, Emeka & Okwu, Andy, 2022. "Economic Size, Uncertainty, and Income Inequality in Nigeria," MPRA Paper 113637, University Library of Munich, Germany.
    4. Leena Kalliovirta & Tuomas Malinen, 2020. "Non‐Linearity and Cross‐Country Dependence of Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(1), pages 227-249, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:38:y:2012:i:4:p:495-511. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.