Poverty and income inequality
Does government quality affect the size and evolution of regional inequality? This column approaches this question using regional data for 46 countries with different degrees of economic development over the period 1996-2006. We find that there is a strong negative association between quality of government and within-country disparities. Countries with better quality of government register lower levels of spatial inequality.
Many studies find evidence of a growing income inequality in China. However, the majority of these studies may be constructing biased measures of inequality. This column presents evidence from a new study on how inequality in China is overstated if one ignores the spatial differences in the cost of living. With a booming urban housing market that displays a high degree of heterogeneity, accounting for spatial price differences is essential.
Eliminating corruption is a central policy goal of policymakers around the globe. It is known that corruption is a barrier to economic development because it increases the costs and risk of business activity, and deters investment. This column discusses a new study analysing the opposite causal relationship – the effect of economic growth on corruption. Both theoretical and empirical evidence show that economic growth causes the amount of corruption to fall.
Several theories link polygamy to poverty. Polygamy is concentrated in west Africa and has declined in recent decades. Geographic variation in women’s agricultural productivity does not predict differences in the prevalence of polygamy, but historical inequality and exposure to the slave trade do. Although contemporary female education does not reduce polygamy, areas with more educational investment in the past have less polygamy today. Conflict and lower rainfall lead to small increases in polygamy, whereas lower child mortality leads to a large decrease. National policies appear to have little effect.
Marriage patterns have changed in the last 50 years as fertility rates declined and cohabitation became more widespread. These trends can be explained by a shift in the gains from marriage away from specialisation and towards investment in children. This column argues that different patterns in childrearing are key to understanding class differences in marriage and parenthood. Heterogeneity in preferences for – or ability to invest in – child human capital explain marriage and fertility patterns across socioeconomic groups.
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Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013