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Gelişmiş ve Gelişmekte Olan Ülkelerde Gelir Eşitsizliği Yakınsama Analizi

Year 2021, Volume: 16 Issue: 61, 19 - 31, 31.01.2021

Hatice Akdağ , Mustafa Özer

https://doi.org/10.19168/jyasar.757287

Abstract

Even though income inequality one of the most commonly analyzed topics in economics, there are few studies aiming to examine the convergence in income inequality. By using a balanced panel of 98 countries over the period of 1995 and 2015, we provide empirical evidences of the beta convergence that explains why there is a decrease in inequality levels in countries that have high inequality levels at the start of the study period and an increase in inequality levels for countries that have low inequality levels at the first year of the sample period. The results of the study support the convergence hypothesis in inequality and provide some explanation of the reasons and the tendencies of income inequalities in countries. Thus, it is possible to derive important implications from the results of the study which contributes the convergence/divergence debate.

Keywords

income inequality beta convergence panel data methods

References

  • Atkinson, A. B. (2003), ‘‘Income Inequality in OECD Countries: Data and Explanations’’, 49(4), CESifo Economic Studies, 479-513.
  • Atkinson, A. B. & Brandolini, A. (2009), ‘‘On data: A Case Study of the Evolution of Income Inequality Across Time and Across Countries’’, Cambridge Journal of Economics, 33, 381-404.
  • Bao, Y. & Dhongde, S. (2009), ‘‘Testing Convergence in Income Distribution’’, Oxford Bulletin Of Economics and Statistics, 71(2), 295-302.
  • Barro, R. J. & Sala-i-Martin, X. (1991), ‘‘Convergence across States and Regions’’, Brookings Papers on Economic Activity, 1, 107-182.
  • Barro, R. J. & Sala-i-Martin, X. (1992), ‘‘Convergence’’, Journal of Political Economy, 100(2), 223-251.
  • Barro, R. J. & Sala-i-Martin, X. (1992), ‘‘Convergence’’, The Journal of Political Economy, 100(2), 223-251.
  • Benabou, R. (1996), ‘‘Inequality and Growth’’, NBER Macroeconomics Annual, 11, 11-92.
  • Bernard, A. B. & Durlauf, S. N. (1995), ‘‘Convergence in International Output’’, Journal of Applied Econometrics, 10(2), 97-108.
  • Bernard, A. B. & Durlauf, S. N. (1996), ‘‘Interpreting tests of the convergence hypothesis’’, Journal of Econometrics, 71, 161-173.
  • Caselli, F., Esquivel, G. & Lefort, F. (1996), ‘‘Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics’’, Journal of Economic Growth, 1, 363-389.
  • Chambers, D. & Dhongde, S. (2016), ‘‘Convergence in income distributions: Evidence from a panel of countries’’, Economic Modelling, 59, 262-270.
  • Deinenger, K. & Squire, L. (1996), ‘‘A New Data Set Measuring Income Inequality’’, The World Bank Economic Review, 10(3), 565-591. Dhongde, S. & Miao, X. (2013), ‘‘Cross-Country Convergence in Income Inequality’’, Society for the Study Of Economic Inequality Working Paper Series, 290.
  • Durlauf, S. N. & Johnson, P. A. (1995), ‘‘Multiple Regimes and Cross-Country Growth Behavior, Journal of Applied Econometrics, 10(4), 365-384.
  • Friedman, M. (1992), ‘‘Do old fallacies ever die?’’, Journal of Economic Literature, 30(4), 2129-2132.
  • Gallup, J. L. (2012), ‘‘The Global Convergence of Income Distribution’’, https://www.pdx.edu/econ/sites/www.pdx.edu.econ/files/inequality_convergence_complete_0.pdf.
  • Hotelling, H. (1933), ‘‘Review of ‘The triumph of mediocrityin business’ by Horace Secrist’’, J Am Stat Assoc, 28, 463-465.
  • Lin, P. C. & Huang, H. C. (2012), ‘‘Convergence in Income Inequality? Evidence From Panel Unit Root Tests With Structural Breaks’’, Empirical Economics, 43, 153-174.
  • Mankiw, N. G. et al (1992), ‘‘A Contribution to the Empirics of Economic Growth’’, The Quarterly Journal of Economics, 407-437.
  • Quah, D. (1993), ‘‘Galton’s Fallacy and Tests of the Convergence Hypothesis’’, The Scandinavian Journal of Economics, 95(4), 427-443.
  • Piketty, T. & Saez, E. (2001), ‘‘Income Inequality in The United States 1913-19998’’, NBER Macroeconomics Annual, 8467.
  • Ravallion, M. (2002), ‘‘Inequality Convergence’’, WB Policy Research Working Paper Series, 2645.
  • Solow, R. M. (1956), ‘‘A contribution to the Theory of Economic Growth’’, The Quarterly Journal of Economics, 70(1), 65-94.
  • Solt, F. (2008), ‘‘Standardizing the World Income Database’’, LIS Working Paper Series, 496.
  • ATG, ˂https://www.gc.cuny.edu/Page-Elements/Academics-Research-Centers-Initiatives/Centers-and-Institutes/Stone-Center-on-Socio-Economic-Inequality/Core-Faculty,-Team,-and-Affiliated-LIS-Scholars/Branko-Milanovic/Datasets˃
  • EHII, University of Texas Inequality Project, ˂http://www.utip.lbj.utexas.edu˃
  • SWIID, The Standardized World Income Inequality Database, ˂http://fsolt.org/swiid/˃
  • UNU-WIDER, Unu-Wider World Income Inequality Database, ˂http://www.wider.unu.edu˃
  • WWID, The World Wealth and Income Database ˂http://www.parisschoolofeconomics.eu/en/research/the-world-wealth-income-database/˃

An Analysis of Convergence of Income Inequality in Developed and Developing Countries

Year 2021, Volume: 16 Issue: 61, 19 - 31, 31.01.2021

Hatice Akdağ , Mustafa Özer

https://doi.org/10.19168/jyasar.757287

Abstract

Even though income inequality one of the most commonly analyzed topics in economics, there are few studies aiming to examine the convergence in income inequality. By using a balanced panel of 98 countries over the period of 1995 and 2015, we provide empirical evidences of the beta convergence that explains why there is a decrease in inequality levels in countries that have high inequality levels at the start of the study period and an increase in inequality levels for countries that have low inequality levels at the first year of the sample period. The results of the study support the convergence hypothesis in inequality and provide some explanation of the reasons and the tendencies of income inequalities in countries. Thus, it is possible to derive important implications from the results of the study which contributes the convergence/divergence debate.

Keywords

Income Inequality Beta Convergence Panel Data Methods

References

  • Atkinson, A. B. (2003), ‘‘Income Inequality in OECD Countries: Data and Explanations’’, 49(4), CESifo Economic Studies, 479-513.
  • Atkinson, A. B. & Brandolini, A. (2009), ‘‘On data: A Case Study of the Evolution of Income Inequality Across Time and Across Countries’’, Cambridge Journal of Economics, 33, 381-404.
  • Bao, Y. & Dhongde, S. (2009), ‘‘Testing Convergence in Income Distribution’’, Oxford Bulletin Of Economics and Statistics, 71(2), 295-302.
  • Barro, R. J. & Sala-i-Martin, X. (1991), ‘‘Convergence across States and Regions’’, Brookings Papers on Economic Activity, 1, 107-182.
  • Barro, R. J. & Sala-i-Martin, X. (1992), ‘‘Convergence’’, Journal of Political Economy, 100(2), 223-251.
  • Barro, R. J. & Sala-i-Martin, X. (1992), ‘‘Convergence’’, The Journal of Political Economy, 100(2), 223-251.
  • Benabou, R. (1996), ‘‘Inequality and Growth’’, NBER Macroeconomics Annual, 11, 11-92.
  • Bernard, A. B. & Durlauf, S. N. (1995), ‘‘Convergence in International Output’’, Journal of Applied Econometrics, 10(2), 97-108.
  • Bernard, A. B. & Durlauf, S. N. (1996), ‘‘Interpreting tests of the convergence hypothesis’’, Journal of Econometrics, 71, 161-173.
  • Caselli, F., Esquivel, G. & Lefort, F. (1996), ‘‘Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics’’, Journal of Economic Growth, 1, 363-389.
  • Chambers, D. & Dhongde, S. (2016), ‘‘Convergence in income distributions: Evidence from a panel of countries’’, Economic Modelling, 59, 262-270.
  • Deinenger, K. & Squire, L. (1996), ‘‘A New Data Set Measuring Income Inequality’’, The World Bank Economic Review, 10(3), 565-591. Dhongde, S. & Miao, X. (2013), ‘‘Cross-Country Convergence in Income Inequality’’, Society for the Study Of Economic Inequality Working Paper Series, 290.
  • Durlauf, S. N. & Johnson, P. A. (1995), ‘‘Multiple Regimes and Cross-Country Growth Behavior, Journal of Applied Econometrics, 10(4), 365-384.
  • Friedman, M. (1992), ‘‘Do old fallacies ever die?’’, Journal of Economic Literature, 30(4), 2129-2132.
  • Gallup, J. L. (2012), ‘‘The Global Convergence of Income Distribution’’, https://www.pdx.edu/econ/sites/www.pdx.edu.econ/files/inequality_convergence_complete_0.pdf.
  • Hotelling, H. (1933), ‘‘Review of ‘The triumph of mediocrityin business’ by Horace Secrist’’, J Am Stat Assoc, 28, 463-465.
  • Lin, P. C. & Huang, H. C. (2012), ‘‘Convergence in Income Inequality? Evidence From Panel Unit Root Tests With Structural Breaks’’, Empirical Economics, 43, 153-174.
  • Mankiw, N. G. et al (1992), ‘‘A Contribution to the Empirics of Economic Growth’’, The Quarterly Journal of Economics, 407-437.
  • Quah, D. (1993), ‘‘Galton’s Fallacy and Tests of the Convergence Hypothesis’’, The Scandinavian Journal of Economics, 95(4), 427-443.
  • Piketty, T. & Saez, E. (2001), ‘‘Income Inequality in The United States 1913-19998’’, NBER Macroeconomics Annual, 8467.
  • Ravallion, M. (2002), ‘‘Inequality Convergence’’, WB Policy Research Working Paper Series, 2645.
  • Solow, R. M. (1956), ‘‘A contribution to the Theory of Economic Growth’’, The Quarterly Journal of Economics, 70(1), 65-94.
  • Solt, F. (2008), ‘‘Standardizing the World Income Database’’, LIS Working Paper Series, 496.
  • ATG, ˂https://www.gc.cuny.edu/Page-Elements/Academics-Research-Centers-Initiatives/Centers-and-Institutes/Stone-Center-on-Socio-Economic-Inequality/Core-Faculty,-Team,-and-Affiliated-LIS-Scholars/Branko-Milanovic/Datasets˃
  • EHII, University of Texas Inequality Project, ˂http://www.utip.lbj.utexas.edu˃
  • SWIID, The Standardized World Income Inequality Database, ˂http://fsolt.org/swiid/˃
  • UNU-WIDER, Unu-Wider World Income Inequality Database, ˂http://www.wider.unu.edu˃
  • WWID, The World Wealth and Income Database ˂http://www.parisschoolofeconomics.eu/en/research/the-world-wealth-income-database/˃
There are 28 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Hatice Akdağ

Mustafa Özer

Publication Date January 31, 2021
Published in Issue Year 2021 Volume: 16 Issue: 61

Cite

APA Akdağ, H., & Özer, M. (2021). An Analysis of Convergence of Income Inequality in Developed and Developing Countries. Yaşar Üniversitesi E-Dergisi, 16(61), 19-31. https://doi.org/10.19168/jyasar.757287
AMA Akdağ H, Özer M. An Analysis of Convergence of Income Inequality in Developed and Developing Countries. Yaşar Üniversitesi E-Dergisi. January 2021;16(61):19-31. doi:10.19168/jyasar.757287
Chicago Akdağ, Hatice, and Mustafa Özer. “An Analysis of Convergence of Income Inequality in Developed and Developing Countries”. Yaşar Üniversitesi E-Dergisi 16, no. 61 (January 2021): 19-31. https://doi.org/10.19168/jyasar.757287.
EndNote Akdağ H, Özer M (January 1, 2021) An Analysis of Convergence of Income Inequality in Developed and Developing Countries. Yaşar Üniversitesi E-Dergisi 16 61 19–31.
IEEE H. Akdağ and M. Özer, “An Analysis of Convergence of Income Inequality in Developed and Developing Countries”, Yaşar Üniversitesi E-Dergisi, vol. 16, no. 61, pp. 19–31, 2021, doi: 10.19168/jyasar.757287.
ISNAD Akdağ, Hatice - Özer, Mustafa. “An Analysis of Convergence of Income Inequality in Developed and Developing Countries”. Yaşar Üniversitesi E-Dergisi 16/61 (January 2021), 19-31. https://doi.org/10.19168/jyasar.757287.
JAMA Akdağ H, Özer M. An Analysis of Convergence of Income Inequality in Developed and Developing Countries. Yaşar Üniversitesi E-Dergisi. 2021;16:19–31.
MLA Akdağ, Hatice and Mustafa Özer. “An Analysis of Convergence of Income Inequality in Developed and Developing Countries”. Yaşar Üniversitesi E-Dergisi, vol. 16, no. 61, 2021, pp. 19-31, doi:10.19168/jyasar.757287.
Vancouver Akdağ H, Özer M. An Analysis of Convergence of Income Inequality in Developed and Developing Countries. Yaşar Üniversitesi E-Dergisi. 2021;16(61):19-31.
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