In this paper we attempt to examine the role of social inequality and status effects in driving trade between two countries which differ systematically only in terms of income-distribution using a status-driven model of consumption involving a status and a non-status good. Our model illustrates...

The relationship between military spending and economic inequality is not well documented within the empirical literature, while numerous studies have uncovered the linkages between military spending and other macroeconomic variables, such as economic growth, unemployment, purchasing power...

It is not clear, whether changes in self-employment are primarily driven by the necessity to take part in the labour market, or if those activities reflect new modes of labour market integration revealing new opportunities and markets, which are especially due in wide parts to the service and...

The purpose of this study is to examine the impact of financial and economic development on cross-country income inequality using a panel data set from 50 low-income developing counties over a long period 1970-2008. The results show that financial development helps in reducing inequalities,...

In this paper, we examine the consequences of imperfect information on the pattern of transfers from parents to children. Drawing on the theory of mechanism design, we consider a model of family contract with two levels of effort. We prove that equal transfers among children are expected under...

In the last decade Argentina experienced a process of wage inequality reduction that is in stark contrast with the trends of the previous decade. The purpose of this study is to analyze the contribution of different factors to this process. The method employed is a decomposition proposed by...

In the first empirical study on how financial reforms have been instrumental in mitigating inequality through financial sector competition, we contribute at the same time to the macroeconomic literature on measuring financial development and respond to the growing field of economic development...

Multidimensional poverty and inequality of opportunity are closely interconnected concepts. Equality of opportunity levels the playing field so that circumstances such as gender, ethnicity, geographical location or family background, which are beyond the control of a child, do not influence his...

The paper examines the partial pro poor orderings for different growth curves and sets of Equally Distributed Equivalent growth rate dominance. A new pro poor growth curve as the of change of Gini social welfare function, based on the quantiles of logarithmic income, has been proposed. It has...

The paper looks at how inequality in household expenditure components affects total inequality and poverty in Malawi. Total household expenditure is disaggregated into four mutually exclusive and exhaustive expenditure items namely; expenditure on food, expenditure on health, expenditure on...