Income, social and political inequality and economic development: Empirical evidence

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 17 May 2013
9.30am–11.00am

Venue

Seminar Room 1 Stanner Building 32 Crawford School

Speaker

Ariun-Erdene Bayarjargal

Contacts

Robert Sparrow
61252188

The purpose of this study is to examine the relationship between income, social and political inequality in the presence of inverted-U curve hypothesis. The analysis uses a panel data set for 72 countries including both developed and developing over the period between 1970 and 2006.

Having identified a strong endogeneity of variables, the study employs the panel IV estimation and system-GMM approaches. According to the result, the inverted-U curve hypothesis is strongly supported by the data. Social inequality has positively associated with income inequality, but political inequality not.

Government spending to GDP ratio, financial development, tertiary level schooling, and age dependency ratio are other significant determinants of income inequality.

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