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Finance and income inequality revisited

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  • Altunbaş, Yener
  • Thornton, John

Abstract

In a panel of 121 developed and developing economies, financial development promotes income equality in upper-middle income countries and inequality in low- and high-income countries. Finance impacts on income inequality through both the financial institutions and financial markets channels, though the impact of the financial institutions channel is relatively larger.

Suggested Citation

  • Altunbaş, Yener & Thornton, John, 2020. "Finance and income inequality revisited," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612318309437
    DOI: 10.1016/j.frl.2019.101355
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    Cited by:

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    3. Hodula, Martin, 2023. "Interest rates as a finance battleground? The rise of Fintech and big tech credit providers and bank interest margin," Finance Research Letters, Elsevier, vol. 53(C).
    4. Gislain Stéphane Gandjon Fankem & Marthe Dorelle Melingui, 2021. "Le développement financier affecte‐t‐il l'inégalité de revenus en Afrique subsaharienne?," African Development Review, African Development Bank, vol. 33(4), pages 620-633, December.
    5. Hodula, Martin, 2022. "Does Fintech credit substitute for traditional credit? Evidence from 78 countries," Finance Research Letters, Elsevier, vol. 46(PB).
    6. Byron Quito & María de la Cruz del Río‐Rama & José Álvarez‐García & Ronny Correa‐Quezada, 2022. "Impact factors and space‐time characteristics of income inequality in a global sample," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1850-1868, December.
    7. Zhu, Wenpeng, 2023. "Digital financial inclusion and the share of labor income: Firm-level evidence," Finance Research Letters, Elsevier, vol. 56(C).
    8. Wang, Zheng-Xin & Jv, Yue-Qi, 2022. "A smooth difference-in-differences model for assessing gradual policy effects: Revisiting the impact of banking deregulation on income distribution," Finance Research Letters, Elsevier, vol. 50(C).

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    More about this item

    Keywords

    Income inequality; Financial development; Financial institutions; Financial markets; Panel regression;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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