Income Inequality and Persistence Changes
21 Pages Posted: 6 Apr 2019
Date Written: March 14, 2019
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 1970-2017 in most countries. The Gini indices generally display unit root behavior at the end of the sample. This finding suggests that the efforts devoted to reducing income inequality at present will have permanent effects.
Keywords: Inequality, Gini coefficient, disposable income, unit roots, structural breaks
JEL Classification: C12, C22, D63
Suggested Citation: Suggested Citation