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Begin New Search Topic Economic Inequality Publication Year within 25 Years

1. Do alternative households improve paid employment outcomes? A comparative analysis of same-sex partnerships in Brazil

Author:
Cicero Braga and James Heintz
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper explores the labor market implications of household formation among same-sex married couples in Brazil, comparing them with different-sex married couples and unpartnered individuals. Using data from the Pesquisa Nacional por Amostra de Domicílios Contínua (PNADC) from 2016 to 2019, the study provides a descriptive overview of same-sex households and analyzes patterns of partnership formation, racial and educational endogamy/homogamy, and paid employment outcomes. Despite data limitations, findings suggest that same-sex couples may benefit from household formation by adopting alternatives to traditional patriarchal dynamics. Women in same-sex partnerships exhibit greater labor market participation and earnings, while men may experience reduced pressure to conform to traditional breadwinner roles. All married/partnered individuals earn a wage premium, relative to unpartnered individuals, but this premium varies by type of couple, sex, and the partner’s education and employment status. The paper highlights the importance of recognizing diverse household structures to fully understand economic well-being and inequities. Further research on the broader spectrum of "families of choice" is necessary to better capture the economic experiences of the LGBTI community in Brazil.
Topic:
Employment, LGBT+, Economic Inequality, Labor Market, Household, and Gender Roles
Political Geography:
Brazil and South America

2. Regional deprivation, individual prospects, and political resentment

Author:
Giovanni Facchini, Anja Neundorf, Sergi Pardos-Prado, and Cecilia Testa
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
Regional economic conditions affect livelihoods and the geography of political resentment. Yet, individuals do not equally partake in their region’s economic fortunes, and their perceptions of relative deprivation need not be the same. Grievances are likely to be shaped not only by income disparities but also by how personal prospects are tied to regional conditions. We argue that the interaction between subjective individual and regional relative deprivation crucially affects perceptions of shared experience and systemic unfairness. Through a large-scale survey experiment in Britain, we provide causal evidence that poor individuals in poor regions express more political resentment due to diminished personal financial prospects and social status. In contrast, political attitudes among poor and wealthy individuals are indistinguishable in affluent regions. Our findings reveal how reference groups affect subjective perceptions of relative deprivation and highlight the importance of egocentric mechanisms, whereby the local economy shapes expectations of individual prospects.
Topic:
Economic Inequality, Regional Economy, Social Status, and Political Resentment
Political Geography:
Britain and Europe

3. Surviving the storm: How climate-related disasters reshape tax morale in sub-Saharan Africa

Author:
Enrico Nichelatti and Abrams Tagem
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Climate-related disasters have increased over recent decades, with severe human and economic consequences. While research has examined their macroeconomic effects and impact on households’ income and consumption patterns, little attention has been given to their impact on tax morale—taxpayers’ intrinsic motivation to comply with tax obligations. This study fills this gap by estimating the impact of climaterelated disasters on tax morale in 26 sub-Saharan African countries using Afrobarometer survey data from 2011 to 2021. The analysis considers six climate-related shocks: droughts, earthquakes, extreme temperatures, floods, storms, and wildfires. We hypothesize that the impact of climate-related disasters on tax morale depends on the specific disasters considered, and that these heterogeneous effects work through two key mechanisms: economic inequality and trust in public institutions. First, they can exacerbate inequality by reducing government revenue, increasing economic hardship for vulnerable groups (through loss of livelihoods), and eliciting unequal policy responses from government. Climate-related disasters can also reduce inequality when associated with increased economic hardship for richer households (by destroying their productive assets. Second, tax morale declines when citizens perceive government responses as inadequate or unfair; conversely, it increases if citizens perceive the government to be responding adequately. Logistic regression results confirm this heterogeneity. Droughts, extreme temperatures, floods, and storms reduce tax morale, while earthquakes and wildfires increase it. Incorporating regional heterogeneity shows that the negative effects of disasters on tax morale are more profound in rural areas. Mediation analysis confirms inequality and institutional trust as key transmission channels. These findings underscore the need for inclusive tax policies and effective post-disaster governance to sustain revenue mobilization in sub-Saharan Africa.
Topic:
Climate Change, Natural Disasters, Tax Systems, and Economic Inequality
Political Geography:
Africa and Sub-Saharan Africa

4. Tackling the UK's regional economic inequality: Binding constraints and avenues for policy intervention

Author:
Anna Stansbury, Dan Turner, and Ed Balls
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper analyzes binding constraints to productivity growth in the United Kingdom’s regions outside London and the greater South East. These analyses challenge a number of common arguments about the UK’s regional economic inequality problem. The authors find little evidence consistent with the hypotheses (i) that low shares of university graduates remain the primary constraint on growth for the UK’s regions; (ii) that there is a generalized issue with access to finance for firms outside the South East; or (iii) that low or falling regional migration rates are to blame for the persistence of the UK’s regional economic inequalities. Instead, they find evidence consistent with (i) a specific relative shortage of STEM degrees; (ii) binding transport infrastructure constraints within major non-London conurbations; (iii) a failure of public innovation policy to support clusters beyond the South East, in particular through the regional distribution of public support for research and development (R&D); and (iv) missed opportunities for higher internal mobility due to London’s overheating housing market. The authors also find some suggestive evidence consistent with constraints on access to early-stage equity financing for high growth-potential small and medium-sized enterprises in certain regions.
Topic:
Finance, Economic Growth, Economic Inequality, and Productivity
Political Geography:
United Kingdom and Europe

5. Can Poverty Graduation Programs Truly Free the Poor from Poverty? Reflections on International and Regional Experiences

Author:
Howaida Adly Roman
Publication Date:
10-2024
Content Type:
Special Report
Institution:
Arab Reform Initiative (ARI)
Abstract:
Poverty is an intractable structural issue, which raises a question that has been perplexing for many years: Why have multiple efforts to combat poverty not liberated the poor from its bond and captivity, allowing them the freedom of sufficiency and human dignity? Does the reason lie in the inadequacy of these efforts, or because the efforts did not address the issue of poverty from its structural causes, instead only dealing with its symptoms? The reasons for questioning this issue are varied. This uncertainty has led to the emergence of a new type of intervention that has been tested initially on limited populations, known as the “graduation out of poverty” approach. This approach was motivated by the recognition in the late 1990s that traditional poverty reduction and microfinance programs could not reach the poorest because, in addition to the barrier of income marginalization, the poor face multidimensional social, economic, and political poverty, as well as psychological and cultural barriers.1 Poverty graduation programs offer an integrated package of interventions aimed at lifting the poor out of their situation and ensuring the sustainability of their emancipation over a specific time, ranging from 24 to 36 months. In 2002, the Bangladesh Rural Advancement Committee (BRAC) developed a program to target the poorest of the poor to free them from their situation and ensure sustainable livelihoods.2 BRAC is a non-governmental organization founded in 1972; its work continued until 2001 when it expanded to include many other countries in the global south, applying its experience in poverty alleviation and establishing branches in many other countries.3 The interventions of these programs seek to combine addressing the immediate needs of those targeted with long-term investment in technical skills, life skills, asset transfer, entrepreneurial development, promoting savings opportunities, and planning for the future to ensure a sustainable exit from poverty and a stable life for these social groups.4 This paper aims to examine poverty exit programs that have been implemented in diverse social, economic, and cultural contexts around the world to draw key conclusions about the ability of these programs to deal with the root causes of poverty and vulnerability. The paper also seeks to investigate the extent to which these programs are scalable, meaning that they can be applied to larger populations; their sustainability; and the guarantee that the poor will not fall back into poverty. The paper focuses on analyzing three experiences from the Arab region, two from Egypt and one from Yemen. Yemen’s program, which is the earliest in the region, dates back to 2006 when the Consultative Group to Assist the Poor (CGAP) and the Ford Foundation decided to expand the approaches to graduation out of poverty through various contexts. In Egypt, the Bab Amal program was implemented by a group of NGOs, while the Forsa program was a government program for graduating beneficiaries of conditional cash transfers (CCT) – the Takaful program – that was implemented in partnership between the Ministry of Social Solidarity and NGOs. Bab Amal was started earlier and has undergone preliminary evaluations, while Forsa is still in its infancy. Research into global poverty graduation programs may help these two experiments avoid making similar mistakes, especially in the context of scaling up. Based on the above, this paper will shed light on what poverty graduation programs are, how they emerged and for what reasons, what role NGOs played, how governments began to adopt these programs and apply them and later expand them, and what the challenges and issues of expansion are. The paper concludes by analyzing a number of challenges facing these programs – chief among them of course the challenge of sustainability – and finally, the lessons learned.
Topic:
Development, Poverty, Economic Inequality, and Social Programs
Political Geography:
Middle East, Yemen, North Africa, and Egypt

6. 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

7. Inflation and Paid Care Services in the U.S.

Author:
Nancy Folbre
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Nancy Folbre offers a number of reasons why increases in average wages among the lowest deciles of the population are not likely to significantly buffer the effects of rapid inflation on families with incomes below the poverty line. It also raises a number of specific questions for future research.
Topic:
Poverty, Economic Inequality, Inflation, and Wages
Political Geography:
North America and United States of America

8. Poverty of Circumstances and Poverty of Opportunity

Author:
Anirudh Krishna and Sujeet Kumar
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
Ordinary people in rural Bihar and in Patna and Delhi have virtually no opportunity to be tested for a hidden talent, be it for athletics or singing or chess or mathematics or art. Not one of more than 800 young people we interviewed has ever competed at the national, state or district level in any of eight activities of different kinds. Alternative careers pass them by. Future champions can remain unidentified and unrewarded. Something better is necessary to make equality of opportunity less a slogan and more a reality. Examples from across the world show what can be done.
Topic:
Poverty, Economic Inequality, and Opportunity
Political Geography:
South Asia and India

9. 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

10. 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