Factors of Income Inequality and Their Influence Mechanisms: A Theoretical Overview

University of Tartu Faculty of Economics and Business Administration Working Paper No. 40

48 Pages Posted: 12 Dec 2005

See all articles by Anneli Kaasa

Anneli Kaasa

University of Tartu - Faculty of Economics and Business Administration

Date Written: November 4, 2005

Abstract

When analysing the factors of income inequality, first as many factors as possible have to be included in order to obtain valid results. The present article systematises the factors of income inequality discussed in the pertinent literature into five groups and summarises the hypotheses about the signs of the influences of the discussed factors on income inequality. But additionally the influences between the factors themselves that form indirect effects on income inequality have to be included. In this article, these influences are discussed and arranged in a system to give an idea about the possible indirect effects on income inequality of all the factors discussed in the article.

Keywords: factors of income inequality, influence mechanisms

JEL Classification: I39

Suggested Citation

Kaasa, Anneli, Factors of Income Inequality and Their Influence Mechanisms: A Theoretical Overview (November 4, 2005). University of Tartu Faculty of Economics and Business Administration Working Paper No. 40. Available at SSRN: https://ssrn.com/abstract=868491 or http://dx.doi.org/10.2139/ssrn.868491

Anneli Kaasa (Contact Author)

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Road 4-A210
Tartu 51009
Estonia
+ 372 7 375 842 (Phone)

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