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A comparison of international income inequality: an ordered probit model analysis

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  • Jo-Hui Chen
  • Wan-Chieh Tsai

Abstract

In this study, the ordered probit model with marginal effect was applied to examine the key elements that influence changes in the Gini levels. The empirical results indicated that export incentives and poverty have a positive impact on the Gini levels. Moreover, the marginal effect revealed that export incentives increase income inequality for countries with higher inequality and reduce inequality for those countries with a relatively even income distribution. Likewise, the study found that the Asian Pacific Economic Cooperation (APEC) and the EU countries move from inequality to equality more efficiently than countries in the Latin American Integration Association (LAIA).

Suggested Citation

  • Jo-Hui Chen & Wan-Chieh Tsai, 2012. "A comparison of international income inequality: an ordered probit model analysis," Applied Economics, Taylor & Francis Journals, vol. 44(13), pages 1701-1716, May.
    • Handle: RePEc:taf:applec:44:y:2012:i:13:p:1701-1716
    DOI: 10.1080/00036846.2011.554371
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    References listed on IDEAS

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    1. Borjas, George J. & Freeman, Richard B. (ed.), 1992. "Immigration and the Work Force," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066332, December.
    2. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
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    Cited by:

    1. Peter Mikek, 2023. "Financial deepening and income inequality: is there a financial Kuznetz curve in Latin America?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 103-125, March.

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