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Explaining cross-country variation in income inequality

By: Rao, Bhanoji.
Material type: materialTypeLabelArticlePublisher: 2003Description: p.1645-648.Subject(s): Income distribution In: Economic and Political WeeklySummary: Most earlier studies exploring the cross-country variation in the degree of income inequality (measured by Gini Ratio) are valuable but for the inappropriate data on inequality comprising estimates of Gini from incomparable data sets such as national and sub-national surveys, per person and per household income distributions, and income and expenditure distributions. This paper explores the cross-country variation in income inequality based on relatively more comparable data and suggests that public policy aimed at reducing inequality and freedom may be the key variables that explain the variation in the Gini across countries. Prospects for launching national policy initiatives to reduce inequalities are rather dim since globalisation could be conveniently used to rationalise a relatively high level of income inequality. - Reproduced.
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Articles Articles Indian Institute of Public Administration
Volume no: 38, Issue no: 17 Available AR57008

Most earlier studies exploring the cross-country variation in the degree of income inequality (measured by Gini Ratio) are valuable but for the inappropriate data on inequality comprising estimates of Gini from incomparable data sets such as national and sub-national surveys, per person and per household income distributions, and income and expenditure distributions. This paper explores the cross-country variation in income inequality based on relatively more comparable data and suggests that public policy aimed at reducing inequality and freedom may be the key variables that explain the variation in the Gini across countries. Prospects for launching national policy initiatives to reduce inequalities are rather dim since globalisation could be conveniently used to rationalise a relatively high level of income inequality. - Reproduced.

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