Jauch, Sebastian; Watzka, Sebastian (2011): Financial development and income inequality. CESifo working paper: Fiscal Policy, Macroeconomics and Growth, 3687 |
Abstract
We analyze the link between financial development and income inequality for a broad unbalanced dataset of 138 developed and developing countries over the years 1960 to 2008. Using credit-to-GDP as measure of financial development, our results reject theoretical models predicting a negative impact of financial development on income inequality measured by the Gini coefficient. Controlling for country fixed effects and GDP per capita, we find that financial development has a positive effect on income inequality. These results are robust to different measures of financial development.
Item Type: | Paper (Discussion Paper) |
---|---|
Faculties: | Economics Economics > Chairs > Seminar for Macroeconomics |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
ID Code: | 19547 |
Deposited On: | 15. Apr 2014 08:51 |
Last Modified: | 29. Apr 2016 09:16 |