We investigate whether income inequality affects subsequent growth in a cross-country sample for 1965-90, using the models of Barro (1997), Bleaney and Nishiyama (2002) and Sachs and Warner (1997), with negative results. We then investigate the evolution of income inequality over the same period and its correlation with growth. The dominating feature is inequality convergence across countries. This convergence has been significantly faster amongst developed countries. Growth does not appear to influence the evolution of inequality over time. Outline

https://www.econstor.eu/bitstream/10419/81822/1/02-28.pdf

Economic growth and income inequality

Introduction. Income distribution and Economics (A.B. Atkinson, F. Bourguignon). Social justice and distribution of income (A.K. Sen). Measurement of inequality (F.A. Cowell). Three centuries of inequality in Britain and America (P.H. Lindert). Historical perspectives on income distribution: The case of Europe (C. Morrisson). Empirical evidence on income inequality in industrialized countries (P. Gottschalk, T.M. Smeeding). Income poverty in advanced countries (M. Jantti, S. Danziger). Theories of the distribution of earnings (D. Neal, S. Rosen). Theories of persistent inequality and intergenerational mobility (T. Piketty). Macroeconomics of distribution and growth (G. Bertola). Wealth inequality, wealth constraints and economic performance (P. Bardhan, S. Bowles and H. Gintis). The distribution of wealth (J.B. Davies, A.F. Shorrocks). Redistribution (R. Boadway, M. Keen). Income distribution and development (R. Kanbur). Income distribution, economic systems and transition (J. Flemming, J. Micklewright).

Handbook of income distribution

In the old centers of 19th- and 20th-century development, policy debates have taken on a disturbingly anachronistic thrust. In Washington, ideological tropes from early triumphalist neoliberalism are repeated in an exaggerated form. The most fervent political clarion calls invoke the return to a caricature of 18th-century America. In London, faith that shrinking the size of the state will generate renewed economic dynamism is again in fashion. It is tempting to see this discourse as simply a signal of the fading relevance of Anglo-American political thinking, but effective dismissal of regressive rhetoric requires a credible and coherent alternative analysis.

The Capability Enhancing Developmental State: Concepts and National Trajectories

This paper investigates the potential causal relationship(s) between China’s urbanization and income inequality since the start of the economic reform. Based on the economic theory of urbanization and income distribution, we analyze the annual time series of China’s urbanization rate and Gini index from 1978 to 2014. The results show that urbanization has an immediate alleviating effect on income inequality, as indicated by the negative relationship between the two time series at the same year (lag = 0). However, urbanization also seems to have a lagged aggravating effect on income inequality, as indicated by positive relationship between urbanization and the Gini index series at lag 1. Although the link between urbanization and income inequality is not surprising, the lagged aggravating effect of urbanization on the Gini index challenges the popular belief that urbanization in post-reform China generally helps reduce income inequality. At deeper levels, our results suggest an urgent need to focus on the social dimension of urbanization as China transitions to the next stage of modernization. Comprehensive social reforms must be prioritized to avoid a long-term economic dichotomy and permanent social segregation.

/pdf/urbanization-and-income-inequality-in-post-reform-china-a-2mgqd5a80t.pdf

Urbanization and Income Inequality in Post-Reform China: A Causal Analysis Based on Time Series Data.

https://facultystaff.richmond.edu/~ccurtis2/Curtis_China_TFP_2013.pdf

Economic reforms and the evolution of China's total factor productivity

A literature review indicates that the main problem in calculating the Gini coefficient of Chinese residents’ income is the shortcomings of the data sources. Though many studies have tried to overcome these limitations through decomposing the nationwide Gini ratio by urban and rural areas, the final results have been underestimated, due to the overlap term or residual in the decomposition. This paper analyses the effects of the overlap term on calculating the overall Gini coefficient through a statistical approach, and estimates Chinese Gini ratios since economic reform and open door policies were adopted. Based on decomposing the Chinese Gini coefficient from 1978 to 2006, the authors find that the key factor of income inequality comes from income disparity between rural and urban inhabitants. The authors investigate the features of this income inequality between rural and urban areas. Furthermore, statistical approaches are employed to evaluate the effects of the development of urbanisation and rural-to-urban average income on the income inequality of the whole nation. The results show that accelerating the pace of urbanisation is the key issue to improving Chinese income disparity. On the basis of the above analysis, the paper proposes related policies for policy-makers.

The trend of the Gini coefficient of China

The literature shows that the main problem with calculating the Gini coefficient of Chinese residents’ incomes is the limitations of the data source. Though many studies have tried to overcome the limitations by decomposing the nationwide Gini coefficient into urban and rural areas, the final results were underestimated due to the overlap term or residual in the decomposition. This paper analyzes the effects of the overlap term on calculating the overall Gini coefficient through the statistical approach, and estimates the Chinese Gini coefficients since the economic reform and open door policies have been adopted. By decomposing the Chinese Gini coefficient from 1978 to 2006, the authors find that the key factor in income inequality is the income disparity between rural and urban inhabitants. Moreover, the authors investigate the features of the income inequality between rural and urban areas. Furthermore, statistical approaches are employed to evaluate the effects of the development of urbanization and the rural to urban average income on the income inequality of the whole nation. The results show that accelerating the pace of urbanization is the key to improving the Chinese income disparity. On the basis of the above analysis, the paper proposes related policies for policy-makers.

The Trend of the Chinese Gini Coefficient

The literature indicates the problems in the data to calculate the Gini coefficient of Chinese residents’ income. Although many studies have tried to overcome the problem by decomposing the nationwide Gini ratio into urban and rural ones, the final results have been underestimated as a result of the overlapped term or residual in the decomposition. This paper analyses the effects of the overlap term on calculating the overall Gini coefficient by taking a statistical approach, and estimates Chinese Gini ratios from 1978 to 2006. We identify income disparity between rural and urban inhabitants as the dominant factor of nationwide income inequality. In addition, statistical approaches are employed to evaluate the effects of the urbanisation and rural-to-urban average income on the income inequality of the whole nation. The results show that accelerating the pace of urbanisation is the crucial to mitigate Chinese income disparity.

/pdf/the-trend-of-the-gini-coefficient-of-china-3uhf4qbzp0.pdf

The Trend of the Gini Coefficient of China

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The trend of the Gini coefficient of China

The Trend of the Chinese Gini Coefficient

The Trend of the Gini Coefficient of China