Income Inequality Measures

This research aims to investigate and rank the influence of factors that affecting the performance of MSEs on wood and metal , garment, food processing and shoe and leather sectors in the case on manufacturing small enterprises in Dire dawa city administration. For the sake of achieving the objectives of this study, likert-scale type and multiple choice questionnaires was analyzed using appropriate host of statistical methods such as descriptive and inferential analyses. The information assembled through questionnaire from a population of 42 small manufacturing enterprises and face-to-face interview for 20 representative or owners of the enterprises. The empirical study elicited eight major challenges which seem to affect performance of manufacturing small enterprises in city. Descriptive findings revealed that marketing, working premises and financial factors respectively were found the three top most severe problems that challenged the MaSEs sector in GTP1 period. Similarly, the inferential analyses output also indicated that marketing, working premise, finance and technological factors are the decisive determinants for the performance of MaSEs at 5% level of significance. Likewise, standardized beta coefficient exhibited that marketing factors followed by working premise and technological factor respectively were found the top three positive significance factors in the performance of the enterprises. Bothinferential sand descriptive findingrevealed that managerial and entrepreneur's factors were found the least determinant and problems for the growth of employment in the city adminstration .Whereas, infrastructure factors found to be moderately significance factor at 10%level of significance .

This research note applies the latest methodology of the United Nations Development Program to approximate the Human Development Index (HDI) and the Inequality Adjusted Human Development Index (IHDI), along with other inequality measures for the case of Puerto Rico.

Human Development Index Trends and Inequality in Puerto Rico 2010-2015. Available from: https://www.researchgate.net/publication/316921010_Human_Development_Index_Trends_and_Inequality_in_Puerto_Rico_2010-2015 [accessed Sep 8, 2017].

This chapter looks at poverty from a perspective which argues that the conscious and deliberate perpetuation of poverty is a form of fundamentalism with its associated principles and values. There are people who are parasitic and are incessantly feeding off and on the sweat of the 'povertised' of society. The chapter explores how poverty prevents the fulfilment and enjoyment of human rights and results in the deferral and postponement, abandonment and foregoing of the destination of people as happiness, freedom, self-and collective affirmation, and self-actualisation. It explains why poverty, as a form of fundamentalism, affects many Africans relative to other groups from different continents. Furthermore, it explores the ways in which what I call appropriates are complicit in the perpetuation of poverty and the fundamentalism associated with it. It also examines how the measurement of poverty speaks to the 'fundamentalisation' of poverty. This is evident in the manner in which poverty statistics are derived and interpreted to express the primacy of the exclusivity of the rich and a system of neoliberalism in which the 'trickle-down effect' – a hollow hypothesis-that should benefit the so-called poor has yet to materialise for inclusivity. The first part of this chapter discusses the povertisation of the masses through the processes of appropriation. The term 'povertised' is deliberately used to show that the povertisation of the masses is a deliberate outcome of a process of making people poor – a form of poverty production. Poverty is neither accidental nor inevitable. Povertisation gives this notion the elements of a process as opposed to being an event; it systematises poverty, and makes it

This study contributes to the literature on inflation dynamics by examining whether internal or external factors drive inflationary pressure in Nigeria. Using the annual time series data from 1981 to 2017 and applying Johansen cointegration analysis, the vector error correction mechanism and the impulse response function, the study reveals some compelling evidence to suggest that external forces are responsible for inflationary pressure in Nigeria. The results, amongst others, reveal that: external drivers – exchange rate, imported inflation and openness – induce a positive and direct relation to inflation. This is because a percentage change in these variables results in an increase in inflation of 0.49%, 0.47% and 4.28%, respectively, on average, ceteris paribus; the internal drivers – government expenditures, net food exports and lending interest rate – dampen inflation by 0.48%, 1.70% and 0.02%, respectively, on average, ceteris paribus; there is evidence of cointegration indica...

Although the determinants of income are complex, the results are surprisingly uniform. To a first approximation, top incomes follow a power-law distribution, and the redistribution of income corresponds to a change in the power-law exponent. Given the messiness of the struggle for resources, why is the outcome so simple? This paper explores the idea that the (re)distribution of top incomes is uniform because it is shaped by a ubiquitous feature of social life, namely hierarchy. Using a model first developed by Herbert Simon and Harold Lydall, I show that hierarchy can explain the power-law distribution of top incomes, including how income gets redistributed as the rich get richer.

The success and failure of any democratic government is gauged in terms of how effectively it has fulfi lled its constitutional obligation of enhancing social and economic well-being, particularly the common man. While developed economies use a set of indices to measure well-being, a systematic and comprehensive empirical assessment of well-being is found wanting in the most developing countries, including India. This paper discusses the status of social and economic well-being of Indian families as measured by a primary survey-based composite index, the India Protection Index (IPI), which is an integration of the important dimensions of well-being. It fi nds that nearly 65 per cent of households and people in India have a reasonable degree of protection (i.e., the power of well-being) and that most of the less-and under-protected are daily wage earners, without any village-urban divide. The western states are better protected, as Maharashtra has the largest number of well-protected households (16 per cent), followed by Kartnataka and Kerala each accounting for 10 per cent. In terms of concentration, Kerala with 70,735 well-protected households per million is at the top, followed by Karnataka with 44,949 households—Uttar Pradesh and Bihar being at the bottom, with 14,621 and 26,908 households, respectively. The results show that the IPI can effectively be used to identify the status of households in terms of social and economic protection.

This paper aims to identify the poor households in terms of the levels of poverty and inequality by using income data from the nationwide 'National Survey of Household Income and Expenditure (NSHIE-2004-05)' of the NCAER. The definition used by the Tendulkar Committee (41.8 per cent poor in rural and 25.7 per cent poor in urban India) is applied by using the per capita income level for arriving at the official 'poor' households. Further, a comparative profile of the poor and non-poor households is presented by using various socioeconomic indicators collected in the survey. For instance, the results of the survey reveal that around one-fourth of the 14 million odd official 'poor' households in urban India own a two-wheeler each, one-third of them own a colour television each, and almost two-third own a pressure cooker each. Almost one in five urban official 'poor' households has at least one well-educated member who is graduate or above. The paper also attempts to test the sensitivity of the poverty measures to the different deprivation ratios estimated by the Planning Commission, the World Bank, Arjun Sengupta (NCEUS report) and Suresh Tendulkar.

Since the publication of the Malthusian population principle, the overall impact of population change on economic growth has provoked huge debates that have challenged pessimistic and optimistic postulations. Pessimists’ research posits that population growth puts a strain on government services. Conversely, optimists agree that population increase is a key component of economic growth through expanded specialisation and increased labour resources. Considering these conflicts in the literature, the Malthusian population principle and the partial least square structural equation model (PLS-SEM) are used by the author to assess the impact of population dynamics on economic growth in Kenya by incorporating the effects of education and health expenditures. The results show that population dynamics influence economic growth both directly and indirectly, with their indirect impact reinforcing the pessimistic argument that an increase in population dynamics growth has a negative effect on ...

ARTICLE INFO Ngozi Adeleye, Adeyemi A. Ogundipe, Oluwatomisin Ogundipe , Ifeoluwa Ogunrinola and Oluwasogo Adediran (2019). Internal and external drivers of inflation in Nigeria. Banks and Bank Systems, 14(4), 206-218. doi:10.21511/bbs.14(4).2019.19 DOI http://dx.doi.org/10.21511/bbs.14(4).2019.19 RELEASED ON Friday, 27 December 2019 RECEIVED ON Saturday, 20 July 2019 ACCEPTED ON Sunday, 20 October 2019

Recent literature on income distribution in Mexico has found evidence of underestimation in inequality. There is a growing consensus that household surveys in Mexico do not capture total household income, but there is no consensus on a methodological proposal to estimate a more-realistic distribution. This article offers a proposal for adjusting household income, crossing information from household surveys, national accounts, economic censuses, and tax incidence from the Tax Administration System. It shows evidence of a high, persistent income-distribution inequality, with emphasis on factorial and intracompany inequality. The usual adjustment implies that entire average income increases, but this article identifies the main cause of underestimation in distribution, focusing on noncaptured capital income in the wealthiest households surveyed. La literatura reciente sobre la distribuci on de ingresos en M exico ha hallado evidencia de una subestimaci on de la desigualdad. Hay un consenso creciente de que las encuestas a hogares en M exico no capturan el total de los ingresos del hogar, pero no existe un consenso respecto a una propuesta metodol ogica para estimar una distribuci on m as realista. Este art ıculo ofrece una propuesta para ajustar los ingresos del hogar, al cruzar la informaci on de las encuestas a hogares, las cuentas nacionales, los censos econ omicos y la incidencia fiscal del Sistema Tributario. Muestra que hay una alta desigualdad de ingresos, con enfasis en una desigualdad factorial e intra-empresarial. El ajuste com un implica que el promedio de ingreso total aumenta, pero este art ıculo identifica la principal causa de la subestimaci on en la distribuci on, y se enfoca en los ingresos capitales no capturados por los hogares m as adinerados en la encuesta.

This study contributes to the literature on inflation dynamics by examining whether internal or external factors drive inflationary pressure in Nigeria. Using the annual time series data from 1981 to 2017 and applying Johansen cointegration analysis, the vector error correction mechanism and the impulse response function, the study reveals some compelling evidence to suggest that external forces are responsible for inflationary pressure in Nigeria. The results, amongst others, reveal that: external drivers – exchange rate, imported inflation and openness – induce a positive and direct relation to inflation. This is because a percentage change in these variables results in an increase in inflation of 0.49%, 0.47% and 4.28%, respectively, on average, ceteris paribus; the internal drivers – government expenditures, net food exports and lending interest rate – dampen inflation by 0.48%, 1.70% and 0.02%, respectively, on average, ceteris paribus; there is evidence of cointegration indicating that 57.48% of short-run errors will be corrected in the long run; imported inflation contributes to a deviation of about 33% deviation in the first five periods and accounts for cumulative average of over 100% deviation in inflation. Policy implications are discussed.

Recent literature on income distribution in Mexico has found evidence of underestimation in inequality. There is a growing consensus that household surveys in Mexico do not capture total household income, but there is no consensus on a methodological proposal to estimate a more-realistic distribution. This article offers a proposal for adjusting household income, crossing information from household surveys, national accounts, economic censuses, and tax incidence from the Tax Administration System. It shows evidence of a high, persistent income-distribution inequality, with emphasis on factorial and intracompany inequality. The usual adjustment implies that entire average income increases, but this article identifies the main cause of underestimation in distribution, focusing on noncaptured capital income in the wealthiest households surveyed.

This study attempts to identify the effect of inequality on growth by using Brazilian data, in order to mitigate comparability problems present in cross-country studies. The econometric method System-GMM was used and compared with other three econometric methods (OLS, Panel Within Groups, and GMM) in a dynamic panel, aiming to use a consistent estimator in the presence of endogeneity in the analysis that involves inequality and growth. Our results suggest that the hypothesis of nonlinearity between the variables cannot be rejected. The same conclusion holds for hypothesis of incomplete credit markets and the argument from political economy that redistributive policies mitigate growth.

This paper aims to focus on concentration of income inequality in case of Turkey, based on the Palma ratio that is calculated as the ratio of the share of the top 10 percent income to the bottom 40 percent income. In this regard for the post-2001 period, the income shares of the deciles in Turkey both on national and regional (NUTS-1) level would be analyzed. It would be predicted that, this would provide more specific evidences about the dimensions of the hidden inequality. Within this context based on the descriptive statistics and income inequality decomposition analysis, robustness of the Palma ratio would be evaluated. While overlapping trend between the Palma ratio and the Gini coefficient is found to be significant both on national and regional level, the top10 percent income group represents the most distinctive feature in determining concentration of income inequality between and within the regions of Turkey. Öz Bu çalışma, en üstteki yüzde 10'luk gelir diliminin en alttaki yüzde 40'lık gelir dilimine oranı olarak hesaplanan Palma oranını temel alarak Türkiye'de gelir eşitsizliği yoğunlaşmasına odaklanmayı amaçlamaktadır. Bu kapsamda, 2001 sonrası dönem için gerek ulusal gerekse bölgesel (NUTS-1) düzeyde ondalık gelir dilimlerine ilişkin veriler temel alınacaktır. Bundan yola çıkarak gelir eşitsizliğinin esas olarak nerede gizlendiği hakkında daha belirgin sonuçlara ulaşılacağı öngörülmektedir. Çalışmada, betimleyici istatistikler ve gelir eşitsizliği ayrıştırma yöntemi ile ulaşılan bulgulara dayanarak, Palma oranının temelleri sınanmaktadır. Bulgular sonucunda gerek ulusal gerekse bölgesel düzeyde Palma oranı ile Gini katsayısı arasındaki değişim eğiliminin belirgin bir şekilde örtüştüğü görülürken, en üstteki yüzde 10'luk gelir grubunun payının, bölgelerarası ve bölge içindeki eşitsizlikleri belirleyen en temel gelir grubu olma özelliğine sahip olduğu ortaya çıkmaktadır.

Les inégalités de revenus sont en hausse dans la plupart des pays développés, un phénomène en partie causé par la croissance plus rapide des revenus des mieux nantis, plus particulièrement le 1 % le plus riche. Le Québec a la réputation d'être plus égalitaire que le reste du Canada. At -il connu une augmentation des écarts de revenus en faveur des mieux nantis? À partir des statistiques fiscales des particuliers, nous avons compilé l'évo-lution de la part des revenus captée par le 1 % le plus riche au Québec, de 1973 à 2008. Après avoir connu une baisse de 1973 à 1984, la tendance s'est inversée à la hausse de 1985 à 2008, favorisée par la croissance de la part des revenus non salariaux. Les revenus moyens de marché du 99 % restant ont connu une stagnation de 1980 à 1999, puis une légère hausse de 2000 à 2008. La situation a été beaucoup plus favorable pour le premier centile québécois, ayant connu une croissance quatre fois plus importante que le 99 % restant de 1985 à 2008. Les mécanismes en cause sont multiples et les institutions, en particulier la baisse du taux marginal d'imposition, pourraient avoir joué un rôle important.

This paper aims to identify the poor households in terms of the levels of poverty and inequality by using income data from the nation-wide ‘National Survey of Household Income and Expenditure (NSHIE-2004-05)’ of the NCAER. The definition used by the Tendulkar Committee (41.8 per cent poor in rural and 25.7 per cent poor in urban India) is applied by using the per capita income level for arriving at the official ‘poor’ households. Further, a comparative profile of the poor and non-poor households is presented by using various socio-economic indicators collected in the survey. For instance, the results of the survey reveal that around one-fourth of the 14 million odd official ‘poor’ households in urban India own a two-wheeler each, one-third of them own a color television each, and almost two-third own a pressure cooker each. Almost one in five urban official ‘poor’ households has at least one well-educated member who is graduate or above. The paper also attempts to test the sensitivity of the poverty measures to the different deprivation ratios estimated by the Planning Commission, the World Bank, Arjun Sengupta (NCEUS report) and Suresh Tendulkar.

This study aims to measure financial inclusion and examine its impact on income inequality in a panel of 18 Asian countries over the period 1997-2017. Two alternative approaches for developing financial inclusion index are used: one approach following the methodology of Sarma (2008), while the other is the Dynamic Factor Model (DFM)-based index. The impact of individual indicators and index of financial inclusion on inequality in income is analyzed. The Generalized Method of Moment (GMM) approach is used for empirical analysis. The results indicate that micro-level financial inclusion has a weak negative and statistically significant impact on income inequality. Macro-level index and all individual indicators of financial inclusion do not affect income inequality in the selected sample of economies. The income inequality issues have different natures and cannot be fixed by financial inclusion only. It needs holistic structural reforms to enable fair distribution of income and make an equitable financial system. Financial inclusion is a relatively less important intervention tool regarding fixing the issue of income inequality. This is one of the first studies that used the DFM method for financial inclusion indices construction.