The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector?
This paper uses a cross-sectional data to explore the impact that informal sector has on income variation across different income categories. Instead of using GINI coefficient, the paper considers income shares of decile groups of population. The results reflect a dual role of informal sector in ec...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/3130 |
| _version_ | 1828017305495273472 |
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| author | Mahieddine Adnan Ghecham |
| author_facet | Mahieddine Adnan Ghecham |
| author_sort | Mahieddine Adnan Ghecham |
| collection | DOAJ |
| description |
This paper uses a cross-sectional data to explore the impact that informal sector has on income variation across different income categories. Instead of using GINI coefficient, the paper considers income shares of decile groups of population. The results reflect a dual role of informal sector in economy. On one hand, informal sector could reduce the gap between income earners at the bottom level of income categories. On the other hand, the size of informal sector could exacerbate the gap between top income earners and other categories indicating further concentration of income. Some implications are discussed.
Keywords: Income distribution, informal sector, concentration of income.
JEL Classifications: E26, O15
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| first_indexed | 2024-04-10T10:47:29Z |
| format | Article |
| id | doaj.art-40e6a4297d814324b1c9abc64a19be9b |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:47:29Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-40e6a4297d814324b1c9abc64a19be9b2023-02-15T16:20:15ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector?Mahieddine Adnan Ghecham0University of Al Ain of Science and technology This paper uses a cross-sectional data to explore the impact that informal sector has on income variation across different income categories. Instead of using GINI coefficient, the paper considers income shares of decile groups of population. The results reflect a dual role of informal sector in economy. On one hand, informal sector could reduce the gap between income earners at the bottom level of income categories. On the other hand, the size of informal sector could exacerbate the gap between top income earners and other categories indicating further concentration of income. Some implications are discussed. Keywords: Income distribution, informal sector, concentration of income. JEL Classifications: E26, O15 https://econjournals.com/index.php/ijefi/article/view/3130 |
| spellingShingle | Mahieddine Adnan Ghecham The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? International Journal of Economics and Financial Issues |
| title | The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? |
| title_full | The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? |
| title_fullStr | The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? |
| title_full_unstemmed | The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? |
| title_short | The impact of informal sector on income distribution: Could concentration of income be explained by the size of informal sector? |
| title_sort | impact of informal sector on income distribution could concentration of income be explained by the size of informal sector |
| url | https://econjournals.com/index.php/ijefi/article/view/3130 |
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