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Demographic Change and Wealth Inequality: Global Evidence

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  • Simplice A. Asongu

    (Yaounde, Cameroon)

  • Beatrice D. Simo-Kengne

    (Johannesburg, South Africa)

Abstract

This study explores the effect of various demographic features on wealth share using yearly data for 43 countries. Empirical results from quantile regressions indicate that besides macroeconomic and institutional factors, population ageing and the high size of working population exhibit some mitigating effects on wealth inequality at lower quantiles and the opposite effect at high quantiles. Whereas at the quantile above 75, rising share of working age population, population growth and high fertility rate may help contribute to wealth share equalisation. These finding implies that efficient redistribution strategies depend not only on the level of development but also on the stage of the demographic transition. Accordingly, improving access to education and decent jobs can help fight inequality in relatively young population context while labour market adjustment through government effectiveness could lead to wealth inequality reduction in relatively old population context.

Suggested Citation

  • Simplice A. Asongu & Beatrice D. Simo-Kengne, 2022. "Demographic Change and Wealth Inequality: Global Evidence," Working Papers 22/085, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:22/085
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    References listed on IDEAS

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    More about this item

    Keywords

    Population; Demographic Change; Wealth Inequality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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