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Refitting the Kuznets curve using a gender-specific threshold model

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  • Tom Kennedy
  • Russell Smyth
  • Abbas Valadkhani
  • George Chen

Abstract

Previous studies have reached mixed conclusions regarding the relationship between inequality and per capita income. These studies, however, fail to consider gender differences in income inequality and how these may impact on the relationship between income inequality and per capita income. Using Australian taxation statistics, we derive three sets of Gini coefficients (i.e. female, male and total) for the period 1950–2013. We then examine the relationship between inequality and real per capita income and find that a gender-specific threshold panel regression outperforms three other conventional models. Our findings suggest that ‘one set of coefficients does not fit all’ in that the use of aggregate and constant coefficients may mask variations within, and between, gender inequality over time.

Suggested Citation

  • Tom Kennedy & Russell Smyth & Abbas Valadkhani & George Chen, 2017. "Refitting the Kuznets curve using a gender-specific threshold model," Applied Economics, Taylor & Francis Journals, vol. 49(19), pages 1847-1854, April.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1847-1854
    DOI: 10.1080/00036846.2016.1226495
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    References listed on IDEAS

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    1. Gallego Granados, Patricia & Geyer, Johannes, 2014. "From Gross Wages to Net Household Income: a Distributional Analysis of the Gender Wage Gap," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100492, Verein für Socialpolitik / German Economic Association.
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    Cited by:

    1. Ram, Rati, 2017. "Kuznets curve in happiness: A cross-country exploration," Economic Modelling, Elsevier, vol. 66(C), pages 272-278.
    2. Clifford Afoakwah & Xin Deng & Ilke Onur, 2023. "Reforms and education inequality in Ghana," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 853-878, May.

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