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Re-examining inequality persistence

Author

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  • Ghoshray, Atanu
  • Monfort, Mercedes
  • Ordóñez, Javier

Abstract

Although it is not a new phenomenon, in recent years inequality has moved to the top of the political agenda given the concern that will result in political instability and social resentment. Persistence in inequality can further undermine economic growth and development by hindering educational opportunities, human capital formation, and intergenerational mobility. The persistent nature of inequality stands as one of the most serious challenges for the global economy. This paper analyses inequality persistence for a sample of 60 countries from 1984 to 2015. The authors conclude that inequality is persistent and government redistribution polices through taxes and transfers did not significantly reduce inequality persistence.

Suggested Citation

  • Ghoshray, Atanu & Monfort, Mercedes & Ordóñez, Javier, 2020. "Re-examining inequality persistence," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-9.
    • Handle: RePEc:zbw:ifweej:20201
    DOI: 10.5018/economics-ejournal.ja.2020-1
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    Cited by:

    1. Nelson R. Ramírez- Rondán & Marco E. Terrones & Diego Winkelried, 2020. "Equalizing growth: The case of Peru," Working Papers 176, Peruvian Economic Association.
    2. Trung V Vu, 2023. "Long-term relatedness and income distribution: understanding the deep roots of inequality," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 704-728.
    3. Pașa Adina Teodora & Picatoste Xose & Gherghina Elena Mădălina, 2022. "Financial Literacy and Economic Growth: How Eastern Europe is Doing?," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 27-42, January.

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    More about this item

    Keywords

    inequality; persistence; Gini index; unit root; panel;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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