Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193630 
Year of Publication: 
2019
Series/Report no.: 
ICAE Working Paper Series No. 91
Publisher: 
Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE), Linz
Abstract: 
We study the relationship between per-capita income and income inequality with a heterogeneous panel co-integration approach. We extend previous studies in two dimensions: first, we compile a more extensive data set for 61 countries over 26-51 years and consider measures for both pre-tax and post-tax income inequality; second, we take into account country heterogeneity rather than relying on average panel estimates alone. We find a negative group-mean based relationship using pre-tax income inequality, but no such relationship for post-tax income inequality. Moreover, we find estimates on the country level to be heterogeneous in both cases.
Subjects: 
Development
Inequality
Growth
Panel co-integration
Document Type: 
Working Paper

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