Income Inequality and Persistence Changes

25 Pages Posted: 6 Apr 2019 Last revised: 3 Feb 2020

See all articles by Marcos Sanso-Navarro

Marcos Sanso-Navarro

Universidad de Zaragoza

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza

Date Written: February 3, 2020

Abstract

This paper carries out a time series analysis of the Gini coefficient for disposable income in a sample that includes both advanced and emerging economies. Our results show that inequality has alternated between stationary and nonstationary regimes during the period 1960-2017 in most countries. These changes are determined by the implementation of structural reforms and by periods of economic and, especially, financial distress. Our findings also suggest that the persistence of income inequality increases with lower tax progressivity, higher income for top earners, and worse working conditions.

Keywords: Inequality, Gini coefficient, disposable income, unit roots, structural breaks

JEL Classification: C12, C22, D63

Suggested Citation

Sanso-Navarro, Marcos and Vera-Cabello, María, Income Inequality and Persistence Changes (February 3, 2020). Available at SSRN: https://ssrn.com/abstract=3352484 or http://dx.doi.org/10.2139/ssrn.3352484

Marcos Sanso-Navarro (Contact Author)

Universidad de Zaragoza ( email )

Facultad de Economía y Empresa
Departamento de Análisis Económico
Zaragoza, 50005
Spain
+34 876 554 629 (Phone)

HOME PAGE: http://personal.unizar.es/marcossn

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza ( email )

Academia General Militar, Ctra. de Huesca, s/n
Zaragoza, Zaragoza 50009
Spain

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