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How Development and Liberalisation of the Financial Sector is Related to Income Inequality: Some New Evidence

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  • Jakob de Haan
  • Jan-Egbert Sturm

Abstract

Bumann and Lensink (2016) suggest that the impact of financial liberalization on inequality is conditioned by financial development. Besides presenting a theoretical model that explains the underlying channels, they report empirical results in which capital account liberalisation (as a relatively narrow measure of financial liberalisation) only tends to lower income inequality if the level of financial depth is high enough.

Suggested Citation

  • Jakob de Haan & Jan-Egbert Sturm, 2016. "How Development and Liberalisation of the Financial Sector is Related to Income Inequality: Some New Evidence," BAFFI CAREFIN Working Papers 1633, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:baf:cbafwp:cbafwp1633
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    References listed on IDEAS

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    1. de Haan, Jakob & Sturm, Jan-Egbert, 2017. "Finance and income inequality: A review and new evidence," European Journal of Political Economy, Elsevier, vol. 50(C), pages 171-195.
    2. Manthos D. Delis & Iftekhar Hasan & Pantelis Kazakis, 2014. "Bank Regulations and Income Inequality: Empirical Evidence," Review of Finance, European Finance Association, vol. 18(5), pages 1811-1846.
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    8. Zhang, Ruixin & Ben Naceur, Sami, 2019. "Financial development, inequality, and poverty: Some international evidence," International Review of Economics & Finance, Elsevier, vol. 61(C), pages 1-16.
    9. Florence Jaumotte & Carolina Osorio Buitron, 2015. "Inequality and Labor Market Institutions," IMF Staff Discussion Notes 15/14, International Monetary Fund.
    10. de Haan, Jakob & Sturm, Jan-Egbert, 2017. "Finance and income inequality: A review and new evidence," European Journal of Political Economy, Elsevier, vol. 50(C), pages 171-195.
    11. Agnello, Luca & Mallick, Sushanta K. & Sousa, Ricardo M., 2012. "Financial reforms and income inequality," Economics Letters, Elsevier, vol. 116(3), pages 583-587.
    12. Ms. Florence Jaumotte & Ms. Carolina Osorio-Buitron, 2015. "Inequality and Labor Market Institutions," IMF Staff Discussion Notes 2015/014, International Monetary Fund.
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    Cited by:

    1. Razin, Assaf & Rosefielde, Steven, 2016. "Israel and the 1990-2015 Global Developments: Riding with the Global Flows and Weathering the Storms," CEPR Discussion Papers 11445, C.E.P.R. Discussion Papers.
    2. Bittencourt, Manoel & Chang, Shinhye & Gupta, Rangan & Miller, Stephen M., 2019. "Does financial development affect income inequality in the U.S. States?," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1043-1056.
    3. Manoel Bittencourt & Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Does Financial Development Affect Income Inequality in the U.S. States? A Panel Data Analysis," Working Papers 201803, University of Pretoria, Department of Economics.
    4. Xuan T. T. Pham & Thu B. Luu, 2024. "Effect of FinCredit on income inequality: the moderating role of financial inclusion," Review of Quantitative Finance and Accounting, Springer, vol. 62(3), pages 953-969, April.

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