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The Inequality Footprints of Nations: A Novel Approach to Quantitative Accounting of Income Inequality

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  • Ali Alsamawi
  • Joy Murray
  • Manfred Lenzen
  • Daniel Moran
  • Keiichiro Kanemoto

Abstract

In this study we use economic input-output analysis to calculate the inequality footprint of nations. An inequality footprint shows the link that each country's domestic economic activity has to income distribution elsewhere in the world. To this end we use employment and household income accounts for 187 countries and an historical time series dating back to 1990. Our results show that in 2010, most developed countries had an inequality footprint that was higher than their within-country inequality, meaning that in order to support domestic lifestyles, these countries source imports from more unequal economies. Amongst exceptions are the United States and United Kingdom, which placed them on a par with many developing countries. Russia has a high within-country inequality nevertheless it has the lowest inequality footprint in the world, which is because of its trade connections with the Commonwealth of Independent States and Europe. Our findings show that the commodities that are inequality-intensive, such as electronic components, chemicals, fertilizers, minerals, and agricultural products often originate in developing countries characterized by high levels of inequality. Consumption of these commodities may implicate within-country inequality in both developing and developed countries.

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  • Ali Alsamawi & Joy Murray & Manfred Lenzen & Daniel Moran & Keiichiro Kanemoto, 2014. "The Inequality Footprints of Nations: A Novel Approach to Quantitative Accounting of Income Inequality," PLOS ONE, Public Library of Science, vol. 9(10), pages 1-10, October.
  • Handle: RePEc:plo:pone00:0110881
    DOI: 10.1371/journal.pone.0110881
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    2. Simona Ioana Ghiþã & Rodica Manuela Gogonea & Andreea Simona Sãseanu, 2019. "Manifestations of the European Ecological Footprint from the Perspective of Social Responsibility Codes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 554-554, August.
    3. López, Luis-Antonio & Tobarra, Maria-Angeles & Cadarso, Maria-Ángeles & Gómez, Nuria & Cazcarro, Ignacio, 2022. "Eating local and in-season fruits and vegetables: Carbon-water-employment trade-offs and synergies," Ecological Economics, Elsevier, vol. 192(C).
    4. Rachel C. Reyes & Arne Geschke & Arjan de Koning & Richard Wood & Tatyana Bulavskaya & Konstantin Stadler & Hagen Schulte in den Bäumen & Arnold Tukker, 2017. "The Virtual IELab – an exercise in replicating part of the EXIOBASE V.2 production pipeline in a virtual laboratory," Economic Systems Research, Taylor & Francis Journals, vol. 29(2), pages 209-233, April.
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    6. Yafei Wang & Arne Geschke & Manfred Lenzen, 2017. "Constructing a Time Series of Nested Multiregion Input–Output Tables," International Regional Science Review, , vol. 40(5), pages 476-499, September.
    7. Hannah‐Jayne Shilling & Thomas Wiedmann & Arunima Malik, 2021. "Modern slavery footprints in global supply chains," Journal of Industrial Ecology, Yale University, vol. 25(6), pages 1518-1528, December.
    8. Anke Schaffartzik & Dominik Wiedenhofer & Nina Eisenmenger, 2015. "Raw Material Equivalents: The Challenges of Accounting for Sustainability in a Globalized World," Sustainability, MDPI, vol. 7(5), pages 1-26, April.

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