Does Income Inequality Move Together Across the World?
9 Pages Posted: 23 Sep 2022
Date Written: September 3, 2022
This study investigates on relative importance of the synchronization of income inequality, measured by Gini coefficient, using a dynamic factor model. We find that the global factors are relatively stable while the regional factors have heterogeneous effects on income inequality fluctuation. Also, the regional factors account more significantly for the future variance of income inequality than the global factors, which is the evidence of convergence within each continent.
Keywords: Income inequality, Dynamic factor model, Globalization
JEL Classification: D63, F20, F62
Suggested Citation: Suggested Citation
Ahn, Joonhong and BAEK, INGUL and Noh, Sanha, Does Income Inequality Move Together Across the World? (September 3, 2022). Available at SSRN: https://ssrn.com/abstract=4208484 or http://dx.doi.org/10.2139/ssrn.4208484
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