The central objective of our paper is to empirically examine the relationship between financial development and income inequality. Theoretically, there are grounds for both a positive and negative relationship between the two variables. Our main finding is that financial development contributes...

The central objective of our paper is to empirically examine the relationship between financial development and income inequality. Theoretically, there are grounds for both a positive and negative relationship between the two variables. Our main finding is that financial development contributes...

This paper tests the relationship between financial development and income inequality differentiating between gross- and net income inequality in a cross-country setting, using a new standardized database of income inequality. Financial development does negatively affect income inequality...