Finance and income inequality revisited

Konferenzbeitrag

Using a panel fixed effects model for a large sample of countries, we examine how financial development, financial liberalization and banking crises are related to income inequality. Our results suggest that all finance variables increase income inequality. In addition, the impact of financial liberalization on inequality seems to be conditioned by the level of financial development. There is evidence that the quality of political institutions conditions the impact of finance on income inequality, in contrast to the quality of economic institutions. Our main finding is robust for using random effects, cross-country regressions and legal origin as instrument for financial development.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Inequality ; No. B06-V2

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; International Economic Order and Integration ; Macroeconomic Analyses of Economic Development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sturm, Jan-Egbert ; De Haan, Jakob
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/145660
• Last update: 10.03.2025, 11:44 AM CET