Climate change and within-country inequality: New evidence from a global perspective

Elena Paglialunga, Andrea Coveri and Antonello Zanfei

World Development, 2022, vol. 159, issue C

Abstract: This paper investigates the impact of climate change on within-country income inequality for more than 150 nations over the period 2003–2017. Specifically, we control for a large number of determinants of income disparities detected by extant literature and focus on agriculture as one of the most crucial channels in the climate change-inequality nexus. We find that temperature increases and precipitation anomalies have significant adverse effects on within-country inequality, especially in the presence of larger shares of population in rural areas and of workers in agriculture. We also provide evidence on the lower distributional impact of climate change in economies that are more diversified across value chain activities.

Keywords: Inequality; Climate change; Agriculture; FDI; Global value chains (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:159:y:2022:i:c:s0305750x22002200

DOI: 10.1016/j.worlddev.2022.106030

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