Is income inequality persistent? Evidence using panel stationarity tests, 1870-2011

Md. Rabiul Islam; Jakob B. Madsen

doi:10.1016/j.econlet.2014.12.024

Is income inequality persistent? Evidence using panel stationarity tests, 1870-2011

Md. Rabiul Islam
, Jakob B. Madsen

Research output: Contribution to journal › Article › peer-review

15 Citations (Scopus)

Abstract

Using data on inequality for 21 OECD countries over the period 1870-2011 this paper tests the Piketty hypothesis that income inequality is likely to grow in the 21st century. It is shown that the null hypothesis of trend stationarity of inequality cannot be rejected at conventional significance levels, suggesting that shocks to income inequality are likely to be temporary.

Original language	English
Pages (from-to)	17-19
Number of pages	3
Journal	Economics Letters
Volume	127
DOIs	https://doi.org/10.1016/j.econlet.2014.12.024
Publication status	Published - Jan 2015
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 10 Reduced Inequalities

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10.1016/j.econlet.2014.12.024

Cite this

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title = "Is income inequality persistent? Evidence using panel stationarity tests, 1870-2011",

abstract = "Using data on inequality for 21 OECD countries over the period 1870-2011 this paper tests the Piketty hypothesis that income inequality is likely to grow in the 21st century. It is shown that the null hypothesis of trend stationarity of inequality cannot be rejected at conventional significance levels, suggesting that shocks to income inequality are likely to be temporary.",

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year = "2015",

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doi = "10.1016/j.econlet.2014.12.024",

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AU - Islam, Md. Rabiul

AU - Madsen, Jakob B.

PY - 2015/1

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N2 - Using data on inequality for 21 OECD countries over the period 1870-2011 this paper tests the Piketty hypothesis that income inequality is likely to grow in the 21st century. It is shown that the null hypothesis of trend stationarity of inequality cannot be rejected at conventional significance levels, suggesting that shocks to income inequality are likely to be temporary.

AB - Using data on inequality for 21 OECD countries over the period 1870-2011 this paper tests the Piketty hypothesis that income inequality is likely to grow in the 21st century. It is shown that the null hypothesis of trend stationarity of inequality cannot be rejected at conventional significance levels, suggesting that shocks to income inequality are likely to be temporary.

KW - Cross-sectional dependence

KW - Inequality

KW - Multiple structural breaks

KW - Persistence

UR - https://www.scopus.com/pages/publications/84920563956

U2 - 10.1016/j.econlet.2014.12.024

DO - 10.1016/j.econlet.2014.12.024

M3 - Article

AN - SCOPUS:84920563956

SN - 0165-1765

VL - 127

SP - 17

EP - 19

JO - Economics Letters

JF - Economics Letters

ER -

Is income inequality persistent? Evidence using panel stationarity tests, 1870-2011

Abstract

UN SDGs

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