Skip to main content
Article thumbnail
Location of Repository

Explaining international and intertemporal variations in income inequality

By Hong Yi Li, Lyn Squire and Heng-fu Zou

Abstract

This paper explores the propositions that, income inequality is relatively stable within countries; and that it varies signi®cantly among countries. A new and expanded data set provides broad support for both propositions. Drawing on a political economy and capital market imperfection arguments to explain the intertemporal and international variation in inequality, the empirical analysis shows that the predicted variables associated with the ®rst argument (a measure of civil liberties and the initial level of secondary schooling) and the second argument (a measure of ®nancial depth and the initial distribution of land) are indeed important determinants of inequality. This paper explores two propositions regarding income inequality. They are: ®rst, income inequality is relatively stable within countries; and second, it varies signi®cantly across countries. 1 To illustrate, note that the Gini coef®cient in India remained almost constant for forty years (1951±92) with mean 32.6 and standard deviation 2.0. 2 In contrast, the variation in Gini coef®cients across countries is large: 61.9 in Honduras in 1968 compared with 17.8 in Bulgaria in 1976. If substantiated, these propositions have potentially signi®cant implication

Year: 1998
OAI identifier: oai:CiteSeerX.psu:10.1.1.198.5765
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.worldbank.org/resea... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.