Labour shares, inequality, and the relative price of capital

Loukas Karabarbounis, Brent Neiman 25 November 2014

a

A

At least since Kaldor (1961), the constancy of the labour share of income has been considered one of the key foundations underlying macroeconomic models. In Karabarbounis and Neiman (2014a), we documented a global decline in the share of labour compensation in gross income (‘gross labour share’) since 1975 and emphasised the role of declining investment prices for this trend. Piketty (2014) and Piketty and Zucman (2014) also discussed this factor share movement and linked it to increases in the capital–output ratio.

a

A

Topics:  Global economy Poverty and income inequality

Tags:  capital, labour, labour share, Inequality, income inequality, wealth inequality, depreciation, interest rates

Innocent bystanders? Monetary policy and inequality in the US

Olivier Coibion, Yuriy Gorodnichenko, Lorenz Kueng, John Silvia 25 October 2014

a

A

In recent decades, the Fed has given way completely, at the highest level and with disastrous consequences, when the bankers bring their influence to bear…  As the American economy begins to improve, influential people in the financial sector will continue to talk about the need for a prolonged period of low interest rates.  The Fed will listen. This time will not be different.”  Acemoglu and Johnson (2012)     

a

A

Topics:  Monetary policy Poverty and income inequality

Tags:  US, monetary policy shocks, income inequality, consumption, household heterogeneity

Cross-country differences in perceptions of inequality

Judith Niehues 28 September 2014

a

A

The well-known and frequently tested median voter theorem predicts a positive relationship between income inequality and state redistribution; if the decisive median voter’s income is below the social average, he votes for more welfare redistribution because he expects to benefit from progressively financed welfare programmes. However, this theory does not perform very well when confronted with data. Although income inequality is high in the US, support for welfare state programmes is relatively low. In contrast, income differences in European countries are substantially lower.

a

A

Topics:  Poverty and income inequality Welfare state and social Europe

Tags:  income inequality, perceived income inequality, Europe, US

Volatile top income shares in Switzerland? Reassessing the evolution between 1981 and 2009

Reto Foellmi, Isabel Martínez 31 August 2014

a

A

The evolution of inequality in income and wealth has attracted substantial attention in recent decades. Academics have been trying to capture the relation between distribution and growth patterns – most recently and prominently Piketty (2014) in his widely discussed book Capital in the Twenty-First Century. Research on income distributions has notably focused on the top of the earnings distribution, in particular because changes in the very top incomes account for a large part of overall inequality in quantitative terms.

a

A

Topics:  Europe's nations and regions Poverty and income inequality

Tags:  Switzerland, Inequality, income inequality, wealth inequality

Why does inequality grow? Can we do something about it?

Coen Teulings 15 June 2014

a

A

Over the past couple of years, the OECD has highlighted the rapidly widening income dispersion in OECD countries (see e.g. OECD 2008, OECD 2014). The recent publication of Thomas Piketty’s Capital in the 21st Century, gave new impetus to this debate.

a

A

Topics:  Poverty and income inequality

Tags:  income inequality, minimum wage, wage-setting

Global income distribution: From the fall of the Berlin Wall to the Great Recession

Christoph Lakner , Branko Milanovic 27 May 2014

a

A

The period between the fall of the Berlin Wall and the Great Recession saw probably the most profound reshuffle of individual incomes on the global scale since the Industrial Revolution. This was driven by high growth rates of populous and formerly poor or very poor countries like China, Indonesia, and India; and, on the other hand, by the stagnation or decline of incomes in sub-Saharan Africa and post-communist countries as well as among poorer segments of the population in rich countries.

a

A

Topics:  Global economy Politics and economics Poverty and income inequality

Tags:  democracy, income inequality, globalisation, Inequality

Taxing, spending, and inequality – what is to be done?

Benedict Clements, David Coady, Ruud de Mooij, Sanjeev Gupta 15 April 2014

a

A

The causes and consequences of rising inequality have attracted considerable attention, including the recent study by Thomas Piketty (2014). This has also touched off a lively debate on the appropriate policy response to rising disparities in income and wealth (Mankiw 2013, Berg, Ostry, and Tsangarides 2014). But this is just one of the many challenges facing ministers of finance – reducing public debt ratios and raising growth are also priorities. So what’s a minister to do?

a

A

Topics:  Poverty and income inequality Taxation

Tags:  income inequality, redistribution, fiscal policy

Who let the Gini out? Searching for sources of inequality

Davide Furceri, Prakash Loungani 13 February 2014

a

A

Last month’s World Economic Forum at Davos will be remembered as the one where the rich realised that incomes were unequal. One suspects the rich had always been dimly aware of this fact, but even they seem to have been astounded by the degree of inequality.

a

A

Topics:  Poverty and income inequality

Tags:  income inequality, fiscal consolidation, capital account liberalisation

Rising wealth-to-income ratios, inequality, and growth

Thomas Piketty, Gabriel Zucman 26 September 2013

a

A

Reducing inequality is one of the defining challenges of our time. In recent decades much of the discussion has centered on the need to invest in education (Goldin and Katz 2010). Fostering access to education is a powerful way to reduce the dispersion of wages in the long run, but it is not enough.

One issue is that in the US – as in many countries – the rise in income inequality has been driven by the top 1% of income earners, and not by the following 9%, although both groups have the same diplomas (Alvaredo et al., 2013).

a

A

Topics:  Poverty and income inequality

Tags:  income inequality, Inequality, wealth inequality

The trend reversal in income inequality and returns to education: How bad is this good news for Latin America?

Augusto de la Torre, Julián Messina 07 March 2013

a

A

Latin America witnessed unprecedented economic and social achievements during the last decade. In particular, the year 2003 appears as an important inflexion point for the region’s economic history, a point that we have highlighted in several World Bank publications1. Specifically, moderate poverty (less than US$4 purchasing power parity per capita, which leveled around 45% of total population during the 1990s and until 2003, steadily falls to less than 30% by 2011, allowing more than 70 million Latin Americans to leave poverty in less than a decade.

a

A

Topics:  Labour markets

Tags:  education, income inequality, Latin America

Pages