Does Income Inequality Move Together Across the World?
9 Pages Posted: 22 Nov 2022
Date Written: September 22, 2022
This study investigates the relative importance of synchronization of income inequality, measured by the Gini coefficient, using a dynamic factor model. This study finds that global factors are relatively stable, whereas regional factors have heterogeneous effects on income inequality fluctuations. Additionally, regional factors account more significantly for the future variance of income inequality than global factors, which is evidence of convergence within each continent.
Keywords: Income inequality, Dynamic factor model, Globalization, Comovement
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 22, 2022). Available at SSRN: https://ssrn.com/abstract=4280099 or http://dx.doi.org/10.2139/ssrn.4280099
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