Income inequality
Zahra Sadeghi Motamed; abolfazl shahabadi; hamid kordbacheh
Abstract
In the contemporary era, knowledge is recognized as a source of wealth for societies, and the role of new production factors in the production function is highly significant. The core of these new production factors is human beings; therefore, inequality can disrupt the process of economic growth and ...
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In the contemporary era, knowledge is recognized as a source of wealth for societies, and the role of new production factors in the production function is highly significant. The core of these new production factors is human beings; therefore, inequality can disrupt the process of economic growth and development by affecting individuals' motivation through these new production factors. Additionally, inequality has always been a key factor in development indicators. Thus, studying the determinants of income inequality is essential. In this regard, the present study uses a Dynamic Panel Data (DPD) model and the Generalized Method of Moments (GMM) approach to analyze the interactive effects of globalization and natural resource rents on income inequality in a selected group of countries from 2008 to 2020.The results indicate that the interaction between globalization and natural resource rents has a positive and significant effect on income inequality. It is suggested that by adopting a strategy of converting natural resources into sustainable and productive capital, while strengthening the economic structure for effective participation in the global economy, a stable income stream can be created to finance supportive policies.Furthermore, the findings show that gender inequality has a positive and significant impact on income inequality, while democracy has a negative and significant effect on income inequality. However, the impact of institutions on income inequality is negative but insignificant.
