Convergence of Income Inequality in OECD Countries Since 1870: A Multi-Method Approach with Structural Changes

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Solarin S. A., ERDOĞAN S., PATA U. K.

Social Indicators Research, cilt.166, sa.3, ss.601-626, 2023 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 166 Sayı: 3
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1007/s11205-023-03080-2
  • Dergi Adı: Social Indicators Research
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, FRANCIS, IBZ Online, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, Abstracts in Social Gerontology, Business Source Elite, Business Source Premier, CAB Abstracts, Communication Abstracts, EBSCO Education Source, EconLit, Geobase, Index Islamicus, Philosopher's Index, Political Science Complete, Psycinfo, Public Administration Abstracts, Social services abstracts, Sociological abstracts, Veterinary Science Database, Worldwide Political Science Abstracts
  • Sayfa Sayıları: ss.601-626
  • Anahtar Kelimeler: Convergence analysis, Gini index, Income inequality, Structural changes
  • Hatay Mustafa Kemal Üniversitesi Adresli: Evet

Özet

This paper aims to examine convergence of income inequality in 21 OECD countries using several empirical techniques. In particular, we have used a new panel stationarity test, which allows for structural changes and cross-sectional dependence to examine the stochastic convergence of income inequality. We also employed a time series approach, residual augmented least squares-Lagrange multiplier unit root test. The empirical results show evidence for absolute, conditional, and sigma convergence. The conditional convergence test results suggest that countries are converging, but conditional on the two structural factors-economic and population growth. The stochastic convergence test results indicate the existence of convergence at the country-specific level. The results further confirm the existence of convergent clubs among OECD countries.