This paper is to analyze the effect of trade openness on regional inequality of South Korea. Trade has been the driving force of Korea's economic growth since the 1960's and it still expands its trade openness through active participation on bilateral and multilateral free trade agreements. In...

This study examines the evolution of the regional per capita income from the perspective of a policymaker at the national level. To do that, it utilizes stochastic dominance analysis by including a utility function that expresses the "regional inequalities aversion" level of the policymaker. In...

Regional differences in prices levels are substantial in many countries, but little is known about how important they are for income inequality and relative poverty. To bridge this gap, we provide new evidence on the basis of the best available data and a novel two-step approach. First, we...

Regional differences in prices levels are substantial in many countries, but little is known about how important they are for income inequality and relative poverty. To bridge this gap, we provide new evidence on the basis of the best available data and a novel two-step approach. First, we...

This paper provides new estimates of the evolution of pay inequality in China, overall and by region and sector, from 1987 to 2012, using the between-groups component of Theil's T-statistic measured across regions and sectors. We find that China's overall pay inequality started to rise rapidly...

Economic growth and convergence of economies are generally considered to be long-run phenomenon. These long-run discussions some time disguise the actual short-run and medium-run dynamics of the distribution and produce an average result, which not only hide intricate details of the...

Indonesia is beset by uneven regional resource endowment and interregional income inequalities. Kataoka (2011) concluded that these are largely determined by the labor productivity differential, using the Duro and Esteban (1998) inequality decomposition approach. We empirically explored the...

The theory of fiscal federalism points out that decentralisation should be pursued in order to fit differences in individual preferences. However, the presence of externalities and the need of providing merit goods to citizens suggest that centralisation is likely to produce more efficient...

I propose a model of income redistribution in an open-economy environment. The world consists of a finite number of countries whose governments seek to maximize the welfare of their low-skilled populations by taxing skilled workers' labor income. While tax competition limits the extent to which...

Existing studies of trust formation in U.S. metropolitan areas have found that trust is lower when there is more income inequality and greater racial fragmentation. I add to this literature by examining the role of income inequality between racial groups (racial income inequality). I find that...