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Home > Research > His Best |
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관리자 |
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2025-06-03 |
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[Asian Economic Papers 2025] What “Causes” Income Inequality? Technological In
novation versus Financialization |
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Juneyoung Lee, and Keun Lee, "What “Causes” Income Inequality? Technological Innovation versus Financialization," Asian Economic Papers, 2025, June.
Abstract
This study asks whether technological innovation, financialization, or both are responsible for global increases in income inequality. To explore this question, this study adopts a modeling and estimation approach that handles past econometric issues and provides causal estimates of shocks on income inequality. This new approach yields several results. First, in contrast with the prediction that technological innovation may increase income inequality, no connection between innovation and income inequality is found. Second, financialization, rather than financial development, is found to increase income inequality. Finally, increases in income inequality due to financialization appear to reflect represent increases in the income shares of top earners at the expense of middle earners rather than workers from the bottom half of the income distribution.
Keywords: Income inequality, financialization, innovation, panel time-series analysis, structural vector autoregression, local projections
JEL Classification: O11, O15, O47
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accepted in AEP KeunLee_Income.pdf (1,435,747 byte) |
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