publication . Article . Other literature type . 2012

Fluctuations, Uncertainty and Income Inequality in Developing Countries

Fadi Fawaz; Masha Rahnamamoghadam; Victor J. Valcarcel;
Open Access
  • Published: 20 Feb 2012 Journal: Eastern Economic Journal, volume 38, issue 4, pages 495-511
Abstract
We analyze income inequality and high frequency movements in economic activity for low and high income developing countries (LIDC and HIDC). The impact of human capital, capital formation, and economic uncertainty on income inequality for LIDC and HIDC are also evaluated. We find strong evidence that business cycle fluctuations serve to exacerbate income inequality in HIDC while they help narrow the gap in LIDC. Importantly, volatility in output widens inequality across the board but to a consistently higher degree in HIDC. Schooling helps reduce income inequality in both country groups, while investment increases income inequality. Lastly, the Kuznets inverted ...
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free text keywords: Economics and Econometrics, Economics, Inequality, media_common.quotation_subject, media_common, Income distribution, Business cycle, Income inequality metrics, Labour economics, Capital formation, Gini coefficient, Economic inequality, Human capital
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