Explaining Variations in Income Inequality: A Panel Data Approach
Date Issued
2016
Date
2016
Author(s)
Chen, Yi-Chun
Abstract
In this paper, we explore the key determinants that do have an impact on income distribution by using the latest income inequality dataset. Through panel data fixed effect analysis, we directly divide our samples into two groups through employing interactions of independent variables with dummy for high-income country. We find that important determinants for the two groups are quite different. In low-income countries, human capital accumulation, financial sector development, trade openness, and civil liberty all have influential power on income distribution. On the contrary, only human capital accumulation and the inflation rate have a crucial effect on income distribution in high-income countries.
Subjects
Income inequality
Panel data
Human capital accumulation
Mechanism
SDGs
Type
thesis
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