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Income Inequality Gini

topic v1.0.0 2026-04-05 Agent-extracted

Causes and consequences of income and wealth inequality including determinants and effects on growth and social outcomes

Download .pax.tar.gz 2.4 KB

Domain: Income Inequality

Measurement, determinants, and consequences of income and wealth inequality within and between countries

Level: macro

Overview

6
Constructs
3
Findings
3
Engines

Constructs

gini_coefficient_income Gini Coefficient Income

Index from 0 to 1 measuring the degree of inequality in national income distribution where 0 is perfect equality

income_share_top_10_pct Income Share Top 10 Percent

Share of pre-tax national income accruing to the top 10 percent of earners in the income distribution

poverty_headcount_215_ppp Poverty Headcount 2.15 PPP

Percentage of population living below international poverty line of 2.15 dollars per day at purchasing power parity

intergenerational_earnings_elasticity Intergenerational Earnings Elasticity

Correlation between parent and child income rankings measuring the degree of social mobility across generations

wealth_share_top_1_pct Wealth Share Top 1 Percent

Share of total national wealth held by the wealthiest 1 percent of the adult population

labor_income_share_gdp Labor Income Share of GDP

Total employee compensation as share of gross domestic product measuring the split between labor and capital

Findings

High inequality with Gini above 0.45 is negatively associated with the duration of economic growth spells

Direction: negative Confidence: moderate Method: growth spell duration analysis

Intergenerational mobility is negatively correlated with inequality known as the Great Gatsby Curve showing that more unequal societies have less mobility

Direction: negative Confidence: strong Method: cross-country correlation analysis

Top income shares have risen in most OECD countries since 1980 driven by capital income growth and executive compensation increases

Direction: positive Confidence: strong Method: historical tax record analysis

Engines

ols_regression correlation_matrix panel_regression

Sources

Piketty, Thomas (2014). Capital in the Twenty-First Century
Chetty, Raj, Hendren, Nathaniel, Kline, Patrick, Saez, Emmanuel (2014). Where is the land of opportunity the geography of intergenerational mobility in the United States DOI
Ostry, Jonathan, Berg, Andrew, Tsangarides, Charalambos (2014). Redistribution inequality and growth
Atkinson, Anthony, Piketty, Thomas, Saez, Emmanuel (2011). Top incomes in the long run of history DOI

Tags

topicincome-inequality

Details

Domain: Income Inequality

Measurement, determinants, and consequences of income and wealth inequality within and between countries

Key Findings

  • High inequality with Gini above 0.45 is negatively associated with the duration of economic growth spells (negative, moderate)
  • Intergenerational mobility is negatively correlated with inequality known as the Great Gatsby Curve showing that more unequal societies have less mobility (negative, strong)
  • Top income shares have risen in most OECD countries since 1980 driven by capital income growth and executive compensation increases (positive, strong)

Installation

Install this PAX into your Praxis instance:

praxis_import_pax("income-inequality-gini.pax.tar.gz", install=True)