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Begin New Search Topic Inequality Content Type Working Paper Publishing Institution Political Economy Research Institute (PERI), University of Massachusetts Amherst

1. IMF Standby Agreements and Inequality: The Role of Informality

Author:
Ceyhun Elgin and Adem Elveren
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this paper we investigate the response of two inequality metrics to different IMF programs. To this end, we use a relatively large annual (unbalanced) cross-country panel dataset that includes the Gini index and the Estimated Household Income Inequality as the two relevant inequality metrics and covers the period from 1950 to 2016 in an annual basis for 159 countries. Our empirical analysis indicates that in countries where the informal sector size (as percentage of GDP) is relatively larger, the extent of income inequality increases after different IMF programs, but particularly so after standby arrangements. However, we also show that the opposite is true, when informal sector size is small, i.e., inequality declines after different IMF programs.
Topic:
Political Economy, Inequality, IMF, and Informal Economy
Political Geography:
Global Focus

2. The Political Economy of the Cost of Living Crisis in the UK: What Is to Be Done?

Author:
Ozlem Onaran
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper analyzes the political economy of the cost of living crisis in the context of the United Kingdom. The paper presents the long-term trends in the wage share, wealth inequality, labour’s bargaining power, and real wages in the UK. The first and second waves of inflation in 2021-22 are discussed presenting the trends in the profit margins. The policy responses by the conservative governments and the Bank of England are analyzed, and their limitations are assessed. The paper concludes with short-run and medium-run policy alternatives to the cost of living crisis
Topic:
Political Economy, Labor Issues, Inequality, Inflation, and Cost of Living
Political Geography:
United Kingdom and Europe

3. Environmental Inequality in Industrial Brownfields: Evidence from French Municipalities

Author:
Charlotte Bez, Michael Ash, and James K. Boyce
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Recent research on environmental inequality has extended its focus from ongoing pollution to legacy pollution by examining the geography of industrial brownfields, defined as nonproductive, contaminated land. This article is the first extensive brownfield analysis for a European country from an environmental inequality perspective, exploiting the political momentum in France where brownfield restoration has become a national priority. In doing so, we combine data on over 7,200 industrial brownfields from the 2022 geodatabase ‘Cartofriches’ with socio-economic variables at the municipality level. We demonstrate communities with higher percentages of foreign-born and unemployed persons are disproportionately more likely to be located near brownfields. The social gradient increases significantly in communities that host many brownfields, the so-called hotspots. There is an inverted U-shaped relationship with income, with a positive correlation until the 75th percentile (C23,700 annually). These findings are robust to different controls, including across urban and rural areas, though with regional differences. Further, we also account for the location of noxious industrial facilities sourced from the E-PRTR database to show the existence of cumulative impacts of environmental risks. Our analysis provides crucial entry points for restorative environmental justice considerations and has important implications for Europe’s just transition and cohesion policies.
Topic:
Environment, Inequality, Pollution, Industry, and Municipalities
Political Geography:
Europe and France

4. Reproductive Injustice? A County-Level Analysis of the Impact of Abortion Restrictions on Abortion Rates

Author:
Raymond Caraher
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Since Planned Parenthood v. Casey in 1992, state governments in the United States have been permitted to restrict abortion access up to the point where such restrictions do not place an ‘’undue burden” on those seeking abortion care. Since this ruling, abortion restrictions of various types and intensities have proliferated across the South and Midwest, especially since the 2010s. This paper uses a novel dataset of county-level abortion rates covering 20 years, as well as a database covering four types of restrictions which represent both “demand-side” restrictions (i.e., those which target abortion seekers) and “supply-side” restrictions (i.e., those which target abortion providers), to analyze the effect of abortion restrictions on abortion rates. Using a difference-in-differences design, the analysis finds that while both classes of abortion restrictions reduce the abortion rate, restrictions that target pregnant people seeking an abortion have a substantially larger effect on abortion rates. Leveraging the spatial heterogeneity of the county-level dataset, the analysis further finds that abortion restrictions have a substantially larger negative effect on abortion rates for counties which have a larger share of Black or Hispanic residents. When comparing high and low income counties, the results suggest that poorer counties experience a higher negative effect of abortion restrictions. Further, the study finds significant variation in the effect of different abortion restrictions by state. While demand-side laws consistently cause abortion rates to decrease, the results for supplyside laws are more heterogenous. Overall, the results suggest that repealing Roe v. Wade will have a significant and unequal effect on abortion rates, with marginalized communities experiencing a greater impact.
Topic:
Health Care Policy, Inequality, Legislation, Reproductive Rights, and Abortion
Political Geography:
North America and United States of America

5. Not So Clear: Revisiting the Impacts of Cap-and-Trade on Environmental Justice

Author:
Michael Ash and Manuel Pastor
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
A recent article by Danae Hernandez-Cortes and Kyle Meng (HCM) suggests that the cap-and-trade program in California was accompanied by improvements in the degree of environmental inequity in the state. We note that that the model used to estimate this improvement is not well-designed to capture the variation in facility adjustment to the cap-and-trade program that is at the heart of the environmental justice debate about potential shifts in co-pollutant exposure. We also show that even if that were a proper approach, the estimates offered by HCM may be problematic due to data issues, including proper identification of facilities subject to the cap, shifting results when we require that facilities have observations both before and after the cap, and robustness when we apply their method estimates beyond their selected subsample to the broader range of facilities. As such, the environmental justice implications of California’s carbon market remain an unsettled empirical question.
Topic:
Inequality, Trade, Pollution, and Environmental Justice
Political Geography:
North America and United States of America

6. The Environmental Consequences of Inequality

Author:
James K. Boyce
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Inequality has important consequences for the extent of pollution and natural resource depletion as well as for the distribution of the costs and benefits from environmental degradation. Inequalities in the distribution of purchasing power operate through the market, and inequalities in the distribution of political power operate through governance institutions, often with mutually reinforcing effects.
Topic:
Environment, Political Economy, Natural Resources, Inequality, Justice, and Pollution
Political Geography:
Global Focus

7. Savings Glut, Secular Stagnation, Demographic Reversal, and Inequality: Beyond Conventional Explanations of Lower Interest Rates

Author:
Matias Vernengo
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Interest rates have declined over the last 40 years, a period of increasing inequality. The steady decline in interest rates has been interpreted by and large as resulting from a decline of the natural rate of interest. This paper surveys the main explanations associated with the notion of a decline in the natural rate of interest, including the savings glut and the secular stagnation hypothesis. It analyzes the views according to which demographic forces were behind the decline, and might perhaps be associated to a future rise of the same natural rate. It also discusses the view according to which the role of inequality has been also to affect the natural rate of interest. Finally, views that discuss the role of monetary and financial factors, including the so-called global financial cycle literature, are discussed. It is argued that the conventional view suffers from logical and empirical problems that are ultimately insurmountable. A brief critique of the notion of a natural rate of interest, and alternative monetary theory of the decline of interest rates, as determined exogenously by the monetary authority of the hegemonic country, the United States, is proposed.
Topic:
Demographics, Inequality, Finance, and Interest Rates
Political Geography:
North America and United States of America

8. Environmental Justice and Carbon Pricing

Author:
James K. Boyce, Michael Ash, and Brent Ranalli
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Opposition to carbon pricing has come not only from the fossil fuel lobby, as might be expected, but also from environmental justice (EJ) advocates who seek to end the disproportionate environmental harms imposed upon people of color and low-income communities, and who fear that carbon pricing could reinforce rather than remedy pollution exposure disparities. This paper focuses on the objections to carbon pricing that EJ advocates have raised. They argue that carbon pricing (i) fails to reduce emissions significantly, (ii) fails to reduce the disproportionate impacts of hazardous co-pollutants on people of color and low-income communities; (iii) hits low-income households harder than richer households; and (iv) commodifies nature. This paper discusses how carbon pricing can be designed to address these very real concerns.
Topic:
Environment, Inequality, Justice, Fossil Fuels, and Carbon Emissions
Political Geography:
Global Focus

9. Inequality in Energy Consumption: Statistical Equilibrium or a Question of Accounting Conventions?

Author:
Gregor Semieniuk and Isabella Weber
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Mitigating climate change requires information about the inequality in energy consumption. Recent contributions (Banerjee and Yakovenko, 2010; Lawrence et al., 2013; Yakovenko, 2010, 2013) have studied energy inequality through the lens of maximum entropy. They claim a weighted international distribution of total primary energy demand should approach a Boltzmann-Gibbs maximum entropy equilibrium distribution in the form of an exponential distribution, implying convergence to a Gini coefficient of 0.5 from above. The present paper challenges the validity of this claim and critically discusses the applicability of statistical equilibrium reasoning to economics from the viewpoint of social accounting. It is shown that the exponential distribution is only a robust candidate for a statistical equilibrium of energy inequality when employing one particular accounting convention for energy flows, the substitution method. But this method has become problematic with a higher renewable share in the international energy mix, and no other accounting method supports the claim of a convergence to a 0.5 Gini. We conclude that the findings based on maximum entropy reasoning are sensitive to accounting conventions and critically discuss the epistemological implications of this sensitivity for the use of maximum entropy approaches in social sciences.
Topic:
Climate Change, Energy Policy, Inequality, Maximum Entropy, and Social Accounting
Political Geography:
Global Focus

10. Delhi Green Deal

Author:
Rohit Azad and Shouvik Chakraborty
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this paper, we propose a carbon tax policy for Delhi, the most polluted capital in the world, which will fundamentally change the energy mix of Delhi's economy toward clean, green energy and will guarantee universal access to electricity, transport and food, up to a certain amount. Any carbon mitigation strategy needs to alter our dependence on fossil fuels, requiring a systemic overhaul of its energy mix. Implementing a carbon tax will mitigate emissions and mobilise revenue for our proposed re-distributive program of Right to Food, Energy and Travel (RFET). The policy is designed to prefer `the poor over the rich' as a way of compensating for `rich hiding behind the poor' in terms of emissions and polluting the environment. Using the input-output analysis, we estimate the class-wise distribution of carbon emissions in Delhi. We find that in order to implement this programme, the necessary estimated tax would be $112.5 per metric ton of carbon dioxide. The free entitlement of fuel and electricity per household comes out to be 2040 kWh per annum and there is an annual universal travel pass of $75 per person for use in public transport, and annual per capita availability of food of $205. The purpose of this proposed policy is two-fold in the context of Delhi: bring emissions under control and provide relief to the people who are at the receiving end of this climate crisis.
Topic:
Climate Change, Energy Policy, Inequality, Carbon Tax, Carbon Emissions, and Green Deal
Political Geography:
South Asia and India