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Financial Sector Transformation and Income Inequality-An Empirical Analysis

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  • Szymborska Hanna K.

    (University of Leeds, Maurice Keyworth Building LS2 9JT, United Kingdom of Great Britain and Northern Ireland)

Abstract

This paper examines the relationship between financial sector transformation and income inequality. We construct an econometric model of income concentration for a panel of 16 OECD countries in the years 1995-2009. From our study, financial sector transformation, measured individually by three indicators (GDP share of stock market value traded, bank income and private credit), emerges as a nexus of complex and interconnected phenomena, which are strongly associated with the concentration of income at the top of the distribution.

Suggested Citation

  • Szymborska Hanna K., 2016. "Financial Sector Transformation and Income Inequality-An Empirical Analysis," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 12(2), pages 36-48.
    • Handle: RePEc:vrs:finiqu:v:12:y:2016:i:2:p:36-48:n:1004
    DOI: 10.1515/fiqf-2016-0142
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    Cited by:

    1. Benos, Nikos & Tsiachtsiras, Georgios, 2019. "Innovation and Income Inequality: World Evidence," MPRA Paper 92050, University Library of Munich, Germany.
    2. Benos, Nikos & Tsiachtsiras, Georgios, 2018. "Innovation and Inequality: World Evidence," MPRA Paper 89217, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial Markets; Inequality; Fixed Effects Models;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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