<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper analyses the influence of financial development on income inequality. Throughout this work, one may find the overview of theoretical and empirical literature as well as the empirical model using fixed panel data method. This research paper tries to disentangle the opposing views on the relationship between finance and income distribution, by evaluating the impact of the different dimensions of financial development on the level of income inequality. The important added value of this research is the usage of quintiles of income distribution as a dependent variable that may help to recognise the effect of financial development on the poorest and richest. Another novelty of the paper is the consideration of the effects of financial variables on Gini coefficient in the long and short run. The main results of the analysis using dataset from 2003 to 2014 indicate that financial access decreases income inequality.</p></abstract>

This paper analyses the influence of financial development on income inequality. Throughout this work, one may find the overview of theoretical and empirical literature as well as the empirical model using fixed panel data method. This research paper tries to disentangle the opposing views on the relationship between finance and income distribution, by evaluating the impact of the different dimensions of financial development on the level of income inequality. The important added value of this research is the usage of quintiles of income distribution as a dependent variable that may help to recognise the effect of financial development on the poorest and richest. Another novelty of the paper is the consideration of the effects of financial variables on Gini coefficient in the long and short run. The main results of the analysis using dataset from 2003 to 2014 indicate that financial access decreases income inequality.

Financial development and income inequality

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Financial development and income inequality"}

This paper analyses the influence of financial development on income inequality. Throughout this work, one may find the overview of theoretical and empirical...

Financial development and income inequality

Published Online: Oct 03, 2020

Page range: 84 - 100

DOI: https://doi.org/10.2478/ceej-2020-0006

Keywords
income inequality, financial development, access to finance, financial depth, financial stability, efficiency of financial sector

© 2020 Ewa Weychert, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Financial development and income inequality

Published Online: Oct 03, 2020

Page range: 84 - 100

DOI: https://doi.org/10.2478/ceej-2020-0006

Keywordsincome inequality, financial development, access to finance, financial depth, financial stability, efficiency of financial sector

© 2020 Ewa Weychert, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
income inequality, financial development, access to finance, financial depth, financial stability, efficiency of financial sector