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Begin New Search Topic Economic Inequality Political Geography Global Focus

1. Rights and Responsibilities: Understanding the impact of the tech industry on economic inequality

Author:
Meg Roggensack, Gawain Kripke, Michael Borum, and Hana Ivanhoe
Publication Date:
10-2024
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
Digital technologies have the potential to either ameliorate or worsen the dynamics underlying poverty and inequality, depending on how those technologies are designed, developed, deployed, and used, as well as on the degree to which the businesses, and business models behind them, respect the rights of users and workers. This paper recommends changes in corporate and government policies and practices to ensure that the information and communication technology (ICT) industry respects human rights and does not exacerbate poverty and economic inequality across five pillars: access and equity, digital civic space, data use and privacy, automation and the future of work, and governance.
Topic:
Human Rights, Poverty, Science and Technology, Governance, and Economic Inequality
Political Geography:
Global Focus

2. Federal Reserve Monetary Policy and Wealth Inequality

Author:
Aaron Medlin and Gerald Epstein
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This study analyzes the impact of conventional expansionary monetary policy on wealth inequality in the United States from 1976 to 2012. We use the local projections instrumental variable (LP-IV) approach for our estimation method and employ two monetary shock series to identify the causal effect. High-frequency data is obtained on the distribution of real net wealth and the Gini index from two new sources: Realtime Inequality and the Federal Reserve’s Distributional Financial Accounts (DFA). We find that expansionary monetary policy has positive and persistent effects on wealth inequality over the medium term, in contrast to previous research. Specifically, an expansionary policy of 100 basis points cut in the policy rate increases the share of wealth for the top 10 and 1 percent and reduces the share for the bottom 50 and middle 40 percent of the distribution. Overall, wealth inequality, as measured by the Gini coefficient, increases around 0.005 on the Gini scale (between 0 and 1) with Realtime data and around 0.015 using DFA data. We also find that the effect size of expansionary policy on inequality varies over prior decades; the effects between 1976 and 1980 are smaller and transient relative to the periods since. We also find that expansionary policy increases wealth inequality regardless of the business cycle. However, its effects are more substantial during economic expansions. Lastly, we estimate the historical contribution of monetary policy to the variation in wealth distribution and find that it does account for significant variations in wealth distribution during certain periods of recent U.S. history.
Topic:
Monetary Policy, Federal Reserve, Economic Inequality, and Wealth Distribution
Political Geography:
Global Focus

3. Global income polarization: Relative and absolute perspectives

Author:
Vanesa Jorda, Miguel Niño-Zarazúa, Laurence Roope, and Finn Tarp
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper presents the first global and regional estimates of polarization and bipolarization spanning the period 1960–2020. The study relies on group data to implement a flexible parametric model to obtain the global income distribution and polarization estimates. The study introduces a battery of sensitivity tests to assess the reliability of polarization estimates under various assumptions, with particular emphasis on the impact of survey under-coverage of top incomes on global polarization levels and trends. Overall, we find that relative bipolarization has consistently decreased since 1980, while in absolute terms it has increased since 1960. The more general measure of relative polarization has also exhibited a steady decline since 1980; however, the trend in its absolute counterpart depends on the size of a sensitivity parameter, which reflects whether individuals cluster with peers of similar income or are segregated from different income groups. Consequently, absolute polarization declined over time for lower values of this parameter but increased for higher values.
Topic:
Economic Inequality, Polarization, and Income Distribution
Political Geography:
Global Focus

4. Lessons for the Age of Consequences: COVID-19 and the Macroeconomy

Author:
Servaas Storm
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Based on comparative empirical evidence for 22 major OECD countries, I argue that country differences in cumulative mortality impacts of SARS-CoV-2 are largely caused by: (1) weaknesses in public health competence by country; (2) pre-existing country-wise variations in structural socio-economic and public health vulnerabilities; and (3) the presence of fiscal constraints. The paper argues that these pre-existing conditions, all favorable to the coronavirus, have been created, and amplified, by four decades of neoliberal macroeconomic policies – in particular by (a) the deadly emphasis on fiscal austerity (which diminished public health capacities, damaged public health and deepened inequalities and vulnerabilities); (b) the obsessive belief of macroeconomists in a trade-off between ‘efficiency’ and ‘equity’, which is mostly used to erroneously justify rampant inequality; (c) the complicit endorsement by mainstream macro of the unchecked power over monetary and fiscal policy-making of global finance and the rentier class; and (d) the unhealthy aversion of mainstream macro (and MMT) to raising taxes, which deceives the public about the necessity to raise taxes to counter the excessive liquidity preference of the rentiers and to realign the interests of finance and of the real economy. The paper concludes by outlining a few lessons for a saner macroeconomics.
Topic:
Global Recession, Economic Inequality, Macroeconomics, Austerity, Public Health, COVID-19, Health Crisis, and Public Spending
Political Geography:
Global Focus

5. Gendered laws and women in the workforce

Author:
Marie Hyland, Simeon Djankov, and Pinelopi Koujianou Goldberg
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper provides the first global look at how gender discrimination by the law affects women’s economic opportunity and charts the evolution of legal inequalities over five decades. Using the World Bank’s newly constructed Women, Business and the Law database, it documents large and persistent gender inequalities, especially with regard to pay and treatment of parenthood. The paper finds positive correlations between more equal laws pertaining to women in the workforce and more equal labor market outcomes, such as higher female labor force participation and a smaller wage gap between men and women.
Topic:
Gender Issues, Labor Issues, Women, Inequality, and Economic Inequality
Political Geography:
Global Focus

6. Women scaling the corporate ladder: Progress steady but slow globally

Author:
Soyoung Han and Marcus Noland
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Despite steady progress, women remain grossly underrepresented in corporate leadership worldwide. The share of women executive officers and board members increased between 1997 and 2017, but progress was not uniform. Partly in response to gender quotas, the shares of female board members have risen rapidly in some countries while lagging elsewhere. This Policy Brief reports results derived from the financial records of about 62,000 publicly listed firms in 58 economies over 1997–2017, which together account for more than 92 percent of global GDP. The authors conclude that if, as emerging evidence in the literature indicates, gender diversity contributes to superior firm performance, then progress in this area could help boost productivity globally. Policymakers and corporate leaders should consider supportive public and private policies, including more gender-neutral tracking in education, firm protocols that encourage gender balance in hiring and promotion, enforceable antidiscrimination laws, public support for readily available and affordable high-quality childcare and maternity and paternity leave, and quotas.
Topic:
Gender Issues, Women, Economic Inequality, and Private Sector
Political Geography:
Global Focus

7. Rebooting the Innovation Agenda

Author:
Daniel F. Runde
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The fourth industrial revolution is underway, and technological changes will disrupt economic systems, displace workers, concentrate power and wealth, and erode trust in public institutions and the democratic political process. Up until now, the focus has largely been on how technology itself will impact society, with little attention being paid to the role of institutions. The relationship between societies and their institutions is changing, and countries will have to strengthen their capacities to avoid heightened social divisions. They must build resilience through gradual and intentional interventions designed for long-term, sustainable development. It is also essential that institutions work hard to build credibility and use available development tools, such as development finance institutions and foreign aid, to mitigate the risks of disruption. Countries and other stakeholders must pioneer these initiatives to successfully navigate the disruptions stemming from the fourth industrial revolution. The revision of existing models of education, skill development and investment and the integration of different stakeholders into the conversation will be critical in helping institutions play a productive role in rebooting the innovation agenda. This new report, Rebooting the Innovation Agenda, analyzes the need for resilient institution and the role they are expected to play in the fourth industrial revolution.
Topic:
Industrial Policy, Democracy, Economic Inequality, and Industrialization
Political Geography:
Global Focus

8. Volume 69 Issue 2

Author:
Muhittin Kaplan
Publication Date:
06-2019
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, Monetary Policy, Political Science, Economic Inequality, and Cryptocurrencies
Political Geography:
Turkey and Global Focus

9. Women’s Financial Inclusion in a Digital World: How Mobile Phones Can Reduce Gender Gaps

Author:
Raiyan Kabir and Jeni Klugman
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Georgetown Institute for Women, Peace and Security (GIWPS)
Abstract:
Globally, only about two-thirds of women own a financial account, compared to about three in four men. In conflict-affected nations, women are 27 percent less likely than men to have a bank account. We present new estimates that greater mobile phone usage among women is associated with much lower gender gaps in financial inclusion: a percentage point lower gender gap in mobile access is associated with a 0.94 lower percentage point financial inclusion gap. This association is much larger than the effects found for reducing gender gaps in employment. Our findings highlight the promise of mobile phones to financially include women in fragile and conflict-affected countries. We also address efforts to close mobile phone gaps, design financial services intentionally for women, eliminate legal discrimination, and establish regulatory and policy frameworks that seek to ensure inclusion. Ultimately, concerted efforts by governments and private sector companies are required to achieve digital financial inclusion and close the gender gap.
Topic:
Women, Conflict, Economic Inequality, Phone, Inclusion, Digital Finance, and Gender
Political Geography:
Global Focus

10. Inequality in the Twenty-First Century: A Review on Rockstars of the Realm

Author:
Martyna Berenika Linartas
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
Abstract:
Not only has been economic inequality on the rise, but also the research agenda on inequality has moved decisively from the fringes to the center of policy and academic interest. This new concern and concentration in respect to this topic, data records, and methodological approaches have given rise to a vast amount of literature. It is for this reason that I review the most important recent works engaging with the origins of economic inequality – a debate which remains highly controversial. The usual categorization to explain the different storytelling – “to be or not to be neoliberal” – seems inappropriate. In this review on “the rockstars of the realm” (Thomas Piketty, Anthony Atkinson, Branko Milanovic and Walter Scheidel), I argue that the question and reason behind different approaches is instead: politics or the economy, which is the master that defines the space for action? The gradually established allegory of “the mirrored hourglass of inequality” illustrates the salience of this cleavage.
Topic:
International Political Economy, Political Economy, Capitalism, Inequality, Neoliberalism, and Economic Inequality
Political Geography:
Global Focus