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The Editorial Board congratulates the award winners for this meaningful and memorable distinction. Esfandiar Maasoumi Editor emaasou@emory.edu B Prior winners b Nikolay Gospodinov M. Hashem Pesaran and Yongcheol Shin Sílvia Gonçalves and Lutz Kilian David M. Drukker, Peter Egger, and Ingmar R. Prucha Tomohiro Ando and Jushan Bai It gives me great pleasure to announce the following paper as winner of the I Econometric Reviews i Best Paper award for 2019-2020. [Extracted from the article]

This paper criticizes attempts to present narrow perspectives on innovation policy as reflecting the use of the concept innovation system. While it is correct that innovation policy, at least until recently, has given higher priority to economic growth than to global challenges such as climate change and income inequality this is in no way immanent in the innovation system concept. To illustrate, the author introduces concepts and perspectives related to the innovation system approach which are particularly useful, when it comes to develop innovation policies aiming at system transformation. It is concluded that there is a need to combine different theoretical framings as inspiration for transformative innovation policy. In addition, all framings need to have a double focus on climate change and global income inequality, and they need to go beyond national perspectives and consider policies aiming at system transformation at the global level. While the paper refers to empirical illustrations it is principally conceptual. [ABSTRACT FROM AUTHOR]

Examining the future trajectory of the Sustainable Development Goals (SDGs) reveals that challenges persist in achieving their targets. While each SDG embodies unique aspirations, overarching challenges permeate its implementation. This paper, with its primary goal to raise awareness about the challenges of SDG 10, directs attention to the challenges surrounding SDG 10, focusing on reducing inequality within and among countries. Through a concise exploration, it identifies five major obstacles impeding progress toward this goal. Firstly, economic inequality poses a significant barrier, with disparities in income and wealth acting as major hindrances to achieving equality. Secondly, social exclusion exacerbates these inequalities, with marginalized groups such as minorities, women, and people with disabilities facing significant barriers to accessing resources and opportunities. Thirdly, political barriers, including a lack of political will and ineffective governance systems, are impeding efforts to address inequality and promote inclusive policies. The fourth challenge is unequal education and healthcare access, perpetuating social and economic disparities. Finally, global economic interdependence, driven by globalization, is exacerbating inequalities between countries, particularly in areas such as trade, finance, and technology access. By delineating these challenges within SDG 10, this paper aims to underscore the multifaceted nature of inequality and the imperative for targeted interventions to advance sustainable development. It's important to note that addressing these challenges is not a task for one entity, but requires the collective efforts of all stakeholders. It necessitates innovative strategies and, most importantly, collaborative partnerships to foster a more equitable and inclusive world. Your involvement, as a key stakeholder, is crucial in this endeavor. [ABSTRACT FROM AUTHOR]

This paper critically examines the increasing instance of anti-democratic experiences in institutions which rely on democracy to exist, including public schools, government agencies, and civil society. Arguing that the undefined nature of American democracy threatens to undermine the foundational principles of the nation's sustaining civic institutions, this polemic contends that such ambiguity perpetuates social and economic inequalities, dehumanizes the citizen-public servant relationship, and prioritizes neoliberal outcomes over holistic engagement. Drawing on philosophical and ethical critiques, this work challenges the agenda behind democratic ambiguity, asserting that the domineering effects of the marketplace serves corporate interests rather than fostering genuine personal engagement in democracy. Ultimately, this paper calls for a reevaluation of the role of democracy throughout society, advocating for a transformation towards actively engaging governance activities that prioritize empathy, critical thinking, and the nurturing of human potential. [ABSTRACT FROM AUTHOR]

This study contributes to income equality (IE) literature by examining four important issues. First, the study examines the effects of foreign bank presence (FBP) on IE. Second, the paper identifies the minimum threshold level of FBP which can lead to IE. Third, the effect of economic freedom on IE was investigated. Fourth, the paper determines whether economic freedom interacts with FBP to minimise IE. The findings are based on macro data for 33 African countries from 1995 to 2020. The findings from the two-stage system generalised method of moment indicate that unconditionally, FBP reduces income inequality. Also, results from the threshold effect reveal that whilst FBP reduces income inequality, if it exceeds 52%, it may contribute to it. Additionally, the study reveals that economic freedom dampens IIE. Furthermore, economic freedom conditions FBP to reduce IE. Based on these findings, policymakers are advised to exercise caution in attracting foreign banks and to promote local financial institutions. Policymakers are also advised to implement policies to promote economic freedom. [ABSTRACT FROM AUTHOR]

This special issue in honour of John Weymark has its origin in a conference organized by Martin Van der Linden with Tommy Andersson, Craig Brett, Eun Jeong Heo, and Diana Weymark at Vanderbilt University in Nashville on April 13-14, 2019. The paper on generalized Gini indices (published in 1981) is one of his most cited paper (second to the industrial economics paper previously mentioned). Regarding economics, John's research interests have not been limited to social choice and welfare theory, although most of his papers deal with what can be broadly defined as normative economics. [Extracted from the article]

In this comment I scrutinise critically some of the views put forward in this Special Issue on Sraffa’s research programme, his accomplishments, and the relationship of his analysis to the analyses of Petty, the physiocrats, Adam Smith, Ricardo and Marx. A special concern is with the role of the sciences in the elaboration of Sraffa’s systems of equations. The emphasis is on precautions that ought to be taken in order not to misinterpret Sraffa’s papers, or his objectivist orientation, and on what I consider to be obvious misunderstandings and misconceptions in the literature. [ABSTRACT FROM AUTHOR]

The article discusses various reports published within the issue including one about income distribution and social inequalities and another about labour market participation and welfare reform.

Purpose: The aim is to study the impact of schooling on between-groups wage inequality beyond the lens of the standard approach in the literature. Design/methodology/approach: Simple econometric theory is used to make the main point of the paper. Supporting empirical evidence is also presented. Findings: Disregarding the persistence of current earnings implies a bias in the estimation of the wage return to schooling both at labour-market entry and in the rest of the working life. Research limitations/implications: The use of current earnings as a dependent variable in wage-schooling models may be problematic and requires specific handling. Social implications: The impact of schooling on the between-groups dimension of wage inequality may be different than previously thought. Originality/value: The paper is the first to show that, when current earnings are used as a dependent variable, the identification of a wage-schooling model with the standard (time-invariant external instrument-variable) approach may lead to misleading conclusions. [ABSTRACT FROM AUTHOR]

Copyright of Max-Planck-Institut für Gesellschaftsforschung Discussion Papers is the property of Max Planck Institute for the Study of Societies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper overviews the theoretical and empirical research on tax amnesties and weighs their advantages and disadvantages. The paper questions if tax amnesties have any tax compliance impacts in the medium to long term as some papers have claimed or if they are more of a hindrance to tax compliance because of their unjust and degenerating effects. The paper examines the available data for the effects of tax amnesty programs on the ratio of tax revenues to GDP and the Gini coefficient for 12 countries focusing specifically on Turkey. The main aim of the paper is to identify better alternatives to tax amnesties in terms of both tax revenue and tax justice. The results of the study show that while the short-term revenue effect of tax amnesties is uncertain, their medium and long-term negative effects on tax justice and income distribution are almost certain. In addition, the study reveals that improving tax revenue is hardly the main reason behind most tax amnesties. [ABSTRACT FROM AUTHOR]

The article presents abstracts of papers presented at the Economic History Association 2015 annual meeting including school resources and labor market outcomes in Georgia in early 20th century, intergenerational income mobility, and land value index for Manhattan, New York City in 1950-2013.

The 2009 and 2012 earthquakes in Italy occurred in a close-knit region and time horizon but differed substantially on both the initial shock to the stock and the subsequent flow of resources. This paper considers the short run impact on the dynamic response of labor market outcomes. Both earthquakes lowered employment and labor force participation by more than 0.5%. With its negative effect on the resources available, the 2009 shock led to a drop in real wages of 1.3% and a sharp—but short-lived—widening of the wage gap generated by the skill premium. The 2012 earthquake, which led firms to upgrade their technology, increased wages by 2.2% and led to a more balanced—but persistent—widening of the wage gap. The predictions of a model developed in this paper are consistent with these results. [ABSTRACT FROM AUTHOR]

Consumer expenditures in the United Kingdom account for over 50% of Gross Domestic Product on the expenditure side, yet their impact on economic activity is often overshadowed by attention to technological change, value chain analysis and especially international trade. In this paper, a recently developed interregional model of the UK economy, SEIM (S ocio- E conomic I mpact M odel) will be used to provide some parallel perspectives to the role of interregional trade in goods and services by focusing on the interregional structure and impact of income and expenditures by households. Drawing on the original contributions of Miyazawa (1976) to highlight the contribution and structure of income interdependence complemented by interpretations offered by average propagation length, field of influence, and feedback loop analyses. The findings reveal the nature and strength of asymmetries in the structure of income formation and their impacts across the multiregional system. While there is only modest variation in aggregate income propagation by region, the accumulation of income is dominated by regions in the London area and secondarily by other metropolitan areas providing a source of explanation for the sustained income inequalities that have characterized the UK economy for almost a century. [ABSTRACT FROM AUTHOR]

Salvador, the capital of Bahia State in Brazil, has long struggled with pronounced economic and social inequality. This stratification has resulted in spatial segregation, leading to the expansion of favelas, typically near the city center, where segregation in various dimensions of social engagement intensifies tensions of inequities. The municipal government has made several attempts to address favela-related issues through urban planning policies. Notwithstanding the progress made in lowering violent crime and extreme poverty, these issues still exist. This paper explores the interaction between government-led practices and corresponding self-organized actions toward planning strategies, invoking a social justice framework and critical urban theories. It identifies mismatches between institutional objectives and residents' expectations, highlighting that structural contradictions in the region's social development remain unresolved. The analysis suggests that planning policies should consider key factors, such as resource redistribution, recognition of sociocultural identity, and political representation. On the basis of these findings, this paper offers insights into urban planning for favelas as examples of complex governance challenges. It also aims to contribute to the global discourse on similar urban planning issues. [ABSTRACT FROM AUTHOR]

This paper surveys Nordic historic studies on the distribution of income to highlight similarities and differences between Denmark, Finland, Norway, and Sweden in the evolution of income concentration and income inequality over more than 140 years. Our descriptive analysis allows for a decomposition where we identify the contribution of the income share of the richest 1 per cent and the distribution of income among the other 99 per cent to overall inequality as measured by the Gini coefficient. The results show that the evolution of income concentration and inequality can be characterised by episodes rather than by secular cycles, which means that the evolution can neither be summarised by Kuznets' inverse U nor by a U. The evidence on the role played by the share of the top 1 per cent for overall income inequality shows to be mixed and to vary across time and countries. [ABSTRACT FROM AUTHOR]

This paper systematically analyzes the spatiotemporal evolution trends and macroeconomic driving factors of farmland transfer at the provincial level in China since 2005, aiming to offer a new perspective for understanding the dynamic mechanisms of China's farmland transfer. Through the integrated use of kernel density estimation, the Markov model, and panel quantile regression methods, this study finds the following: (1) Farmland transfer rates across Chinese provinces show an overall upward trend, but regional differences exhibit a "U-shaped" evolution characterized by initially narrowing and then widening; (2) although provinces have relatively stable farmland transfer levels, there is potential for dynamic transitions; (3) factors such as per capita arable land, farmers' disposable income, the social security level, the urban‒rural income gap, the urbanization rate, government intervention, and the marketization level significantly promote farmland transfer, while inclusive finance inhibits transfer, and agricultural mechanization level and population aging have heterogeneous impacts. Therefore, to achieve convergence of low farmland transfer regions to medium levels while promoting medium-level regions to higher levels, it is recommended that the government increase support for agricultural mechanization, increase farmers' income and social security levels, and optimize marketization processes and government intervention strategies. The main contributions of this paper are (1) systematically revealing the spatiotemporal evolution patterns of China's farmland transfer and (2) employing panel quantile regression methods to explore the heterogeneous impacts of driving factors, providing more precise and detailed empirical support for the government's formulation of farmland transfer policies. [ABSTRACT FROM AUTHOR]

This study utilizes data from A-share listed companies between 2011 and 2020 to empirically investigate the impact and mechanism of public welfare donations on the internal income gap of enterprises. The research findings indicate that public welfare donations significantly increase the per capita salary of management, while their impact on the per capita salary of ordinary employees is not significant, thus leading to an expansion of the internal income gap within enterprises. The results from mechanism testing reveal that the income tax benefits resulting from charitable donations and the rise in corporate operating income have contributed to an increase in excess rent shared by enterprises and employees. Due to a stronger bargaining power, management shares more excess rents, thereby widening the income gap within the enterprise. Heterogeneity analysis demonstrates that public welfare donations have a greater impact on the internal income gap of non-state-owned enterprises; however, limiting executive compensation and enhancing employees' bargaining power can mitigate this widening effect caused by public welfare donations on enterprise's internal income gap. The research value of this study is threefold. Firstly, there is a scarcity of studies on the impact of public welfare donations on the income gap within enterprises, and this study contributes to enriching the research in this area. Secondly, this paper examines the effect of tax incentives for public welfare donations on the internal income gap of enterprises, thereby deepening the research on the impact of tax reduction and fee reduction, as well as expanding our understanding of corporate income tax preferential policies. Thirdly, it offers insights into improving enterprise compensation systems and enhancing corporate governance. Senior executives can potentially allocate more excess rent through their strong bargaining power. If their compensation remains unrestricted, it may lead to a widening internal income gap and negatively affect company operational efficiency. [ABSTRACT FROM AUTHOR]

The importance of diversity, equity and inclusion (DEI) in the architecture, engineering, and construction (AEC) industry has become increasingly salient as the industry continues to struggle with recruitment and retention of high-quality talent throughout construction organizations in the US. The existing literature has explored the barriers faced by various groups who are underrepresented in the construction industry; however, the research is fragmented and lacks a set of synthetic conclusions to drive future work. To this end, we performed a systematic literature review (SLR) to analyze the existing literature, which has categorized the barriers contributing to underrepresentation of women, ethnic minorities, individuals with disabilities, individuals who identify as lesbian, gay, bisexual, transgender, and queer/questioning (LGBTQ), and individuals who have been previously incarcerated. As a result of the SLR, 10 influential variable clusters affecting the recruitment and retention of underrepresented groups were identified, including (1) organizational aspects, (2) work environment, (3) work–life balance, (4) individual or project performance, (5) education, (6) health, (7) safety, (8) wage gap, (9) communication, and (10) ethics. Our findings lead to suggestions for further research, including a need to identify best practices based on empirical evidence from within the range of current DEI practices that have been investigated by prior research. Our results can benefit practitioners, legislators, employers, and others working to improve DEI in the construction industry. [ABSTRACT FROM AUTHOR]

This paper investigates the impact mechanism by which an incentive-based fertility policy may reduce the labor income share. First, the specific paths through which this impact mechanism is realized are analyzed using the production function. It is found that an incentive-based fertility policy triggers high savings, which implies more, cheaper, and more readily available capital to be invested in production. A distribution system that earns income based on factor contributions results in more gains for capital than labor, i.e., a lower share of labor income and a wider income gap between labor and capital. Second, the impact mechanism includes three theoretical hypotheses. They are that an encouraging fertility policy is negatively related to labor income share; this relationship is valid provided that the study subject is in a closed economy; and that capital intensification is a mediator variable of fertility policy affecting labor income share. Finally, to further corroborate the impact mechanism in this paper, a Hansen threshold panel model is applied to verify that the effect of fertility policy on labor income share has a threshold effect. This indicates that the effect of the former on the latter changes significantly before and after the change in fertility policy, confirming the existence of an impact mechanism. The established literature has paid little attention to the impact of incentivised fertility policies on the labour income gap. Using capital intensification as the mediating variable, this paper demonstrates the existence of the former effect on the latter. In view of this, under the encouraged fertility policy, this paper proposes specific measures to enhance the labor income share in order to narrow the income gap between labor and capital. [ABSTRACT FROM AUTHOR]

As of now, more than three years after the first case was detected, government measures against the COVID-19 pandemic have been abolished almost globally. Amidst the initial lack of vaccines and pharmaceutical interventions, governments were forced to implement various measures - usually those aimed at restricting population movement. These public health measures led to severe economic shocks, with inequality being no such exception. Hence, this paper seeks to dissect and discuss COVID-19’s impacts on income inequality on a global scale. This is achieved by comparing different regions such as North America, Europe, Australia, Asia, South America, etc. (eventually categorizing them into developing, emerging, and developed) and analyzing the trends they experience in income inequality along with the role of fiscal, monetary and micro-financial policies in helping those affected. Generally speaking, the results of our paper follow as such: income inequality (1) has decreased in developed/emerging nations, (2) has increased/been exacerbated in developing nations, and (3) has been heavily dictated by the fiscal, monetary and micro-financial policies implemented by governments to mitigate the effects of COVID-19. [ABSTRACT FROM AUTHOR]

Embedded in the general history of income inequality measures, this paper seeks to understand the evolution of the normative approach to inequality measurement. To this end, it undertakes a joint consideration of selected works by Pigou, Dalton, Kolm, and Atkinson that have not previously been discussed in connection with each other. Noting that the normative approach to inequality measurement was neglected for almost five decades, the paper inquires into the reasons for this, proposing two explanations: first, that the normative approach was eclipsed by the pretensions to axiological neutrality supposedly proper to economic science; second, that there was a drift towards statistics in the study of personal income distribution, where the measurement of inequality became established as a central axis. Finally, the paper discusses the different factors that contributed to the rebirth of the normative approach and highlights the ways in which the new contributions manifest an awareness of previous discussions of values in economics. [ABSTRACT FROM AUTHOR]

The integration of the digital transformation of agriculture and China’s ‘dual-carbon’ strategy for agriculture is new momentum for developing agriculture, reducing rural income inequality, and improving the subjective well-being of farm households. This paper uses data from the China Family Panel Studies (CFPS) in 2014, 2016, and 2018 to examine the impact of internet use on rural income inequality at the household level. The results show that internet use can significantly reduce rural income inequality by enhancing information availability and farm households’ nonfarm employment level. The results of a heterogeneity analysis reveal that the internet is more conducive to improving the income inequality of rural burdened families and families in Western China. Further analysis shows that improving income inequality can enhance the subjective wellbeing of farmer households. Accelerating the construction of digital villages, building internet skills cultivation systems, and focusing on the utility of internet use among vulnerable rural groups can reduce rural income inequality. [ABSTRACT FROM AUTHOR]

Wage gaps between "skilled" and "unskilled" earners in the United States are conventionally attributed to U.S. workers' "skill deficits," or lack of skills necessary to deal with technological change, particularly automation. This paper argues instead that skills deficit/automation claims have always been a weak explanation for post-1979 trends. Since the mid-1990s all indications are that there is no basis for considering automation to be a significant factor in wage suppression or the growth of wage inequality. Rather, inequality growth has been an outgrowth of developments in the labor market rather than product markets. The key dynamic undercutting the typical worker's wage growth has been the strengthening of employers' power relative to their white-collar and blue-collar workers. The cause has not been monopoly firms exercising their power in product markets by charging higher prices to consumers. Monopolization has indeed contributed to wage suppression, but even this factor has largely run through the labor market, as monopoly firms squeezed supplier chain firms which in turn undercut their own workers' wages while seeing a profit squeeze as well. The paper concludes that what is needed is a better balancing of power in the labor market rather than a perfecting of competition. [ABSTRACT FROM AUTHOR]

This paper empirically identifies three types of entrepreneurs in the Congolese informal sector, namely top-performers, constrained gazelles and survivalists. Based on logit and fixed effect OLS models, the paper finds that poverty and income inequality are more common among constrained gazelles and survivalists. Results also show that income inequality is explained mainly by educational disparities and lack of credit access among entrepreneurs. The outcomes of a Blinder-Oaxaca decomposition show that the performance of firms is a key factor in explaining differences in income. Moreover, the paper finds that human capital and managerial skills are important engines of performance. [ABSTRACT FROM AUTHOR]