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The Journal of Economic Inequality OnlineFirst articles


The capital share and income inequality: Increasing gaps between micro and macro-data

In this paper, I study how the contrasting coverage of labour and capital incomes affects inequality estimates. I use national accounts as a benchmark to evaluate the scope of household surveys, for a number of countries, and tax data for the …

Ignacio Flores


Sources of gender wage gaps for skilled workers in Latin American countries

This paper identifies the impact of taste-based discrimination on labor market outcomes for nine Latin American countries. We use homogenized survey data on skilled workers to estimate a search and matching model of the labor market with explicit …

Marcela Perticará, Mauricio Tejada


Openness, Income Inequality, and Happiness: Evidence from China

Despite the vast literature on the various determinants of happiness, very little is known about how financial and trade openness may affect people’s happiness in the current literature. In this paper we attempt to fill in this blank using a large …

Yong Ma, Diandian Chen


Does foreign aid reduce poverty? A dynamic panel data analysis for sub-Saharan African countries

This study examines the effect of foreign aid on extreme poverty in sub-Saharan Africa (SSA) over the period 1981–2013. The study uses recent dynamic panel estimation techniques, including those methods which deal with endogeneity by controlling …

Edmore Mahembe, Nicholas Mbaya Odhiambo


Aspirations and investments in rural Myanmar

The aspirations gap is the distance between an individual’s current and aspired standard of livelihood. A growing theoretical literature predicts that aspirations both “too close” and “too far” away from current standards lead to less investment …

Jeffrey R. Bloem

01.06.2021 Open Access

The impact of COVID-19 on households´ income in the EU

This analysis makes use of economic forecasts for 2020 issued by the European Commission in Autumn 2019 and Spring 2020, and of a counterfactual under a no-policy change assumption, to analyse the impact of the COVID-19 crisis on EU households´ …

Vanda Almeida, Salvador Barrios, Michael Christl, Silvia De Poli, Alberto Tumino, Wouter van der Wielen

23.05.2021 Open Access

Asset bubbles in explaining top income shares

This paper considers the role of asset price bubbles (crashes) as an important determinant in seeking a further explanation for top income shares. The asset price bubbles caused at least in part by monetary policies, along with other determinants …

Saikat Sarkar, Matti Tuomala


Inequality, perception biases and trust

This paper studies the effect of income (wealth) inequality on interpersonal trust. We propose a theoretical framework that links trust, trustworthiness and inequality. The key feature is that agents do not necessarily observe the entire income …

Markus Knell, Helmut Stix

17.05.2021 Open Access

Extending multidimensional poverty identification: from additive weights to minimal bundles

In the popular class of multidimensional poverty measures introduced by Alkire and Foster (2011), a threshold switching function is used to identify who is multidimensionally poor. This paper shows that the weights and cut-off employed in this …

Sam Jones


We forgot the middle class! Inequality underestimation in a changing Sub-Saharan Africa

The creation of national middle classes and the changes in consumption patterns in many Sub-Saharan African (SSA) countries suggest reconsidering the way welfare and consequently inequality is typically measured. Using only consumption to measure …

F. Clementi, A. L. Dabalen, V. Molini, F. Schettino


CPI Bias and its Implications for Poverty Reduction in Africa

International poverty estimates for countries in Africa commonly rely on national consumer price indexes to adjust trends in nominal consumption over time for changes in the cost of living. However, the consumer price index is subject to various …

Andrew Dabalen, Isis Gaddis, Nga Thi Viet Nguyen


Bayesian inference for TIP curves: an application to child poverty in Germany

TIP curves are cumulative poverty gap curves used for representing the three different aspects of poverty: incidence, intensity and inequality. The paper provides Bayesian inference for TIP curves, linking their expression to a parametric …

Edwin Fourrier-Nicolaï, Michel Lubrano


Losing ground in the income hierarchy: relative deprivation revisited

The paper discusses a one-parameter generalization of individual relative deprivation measures to a two-period setting that differs from earlier approaches. The parameter is, by definition, independent of the income distributions under …

Walter Bossert, Conchita D’Ambrosio


The Course of Income Inequality as a Cohort Ages into Old-Age

Several researchers have shown that income inequality of a cohort increases as the cohort ages. The various studies examining cohort income inequality use a variety of data, measures, and methods. Is the U.S. experience documented in other studies …

Thomas L. Hungerford


Decomposing Personal Income Tax Redistribution with Application to Italy

The rise of wealth inequalities between and within nations is sustaining the request of reforming personal income taxes in many countries. A complete evaluation of the redistributive effects of tax instruments, however, implies investigating both …

Paolo Di Caro