EconPapers    
Economics at your fingertips  
 

Financial structure and income inequality

Michael Brei, Giovanni Ferri and Leonardo Gambacorta ()

No 13330, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper empirically investigates the link between financial structure and income inequality. Using data for a panel of 97 economies over the period 1989-2012, we find that the relationship is not monotonic. Up to a point, more finance reduces income inequality. Beyond that point, inequality rises if finance is expanded via market-based financing, while it does not when finance grows via bank lending. These findings concur with a well-established literature indicating that deeper financial systems help reduce poverty and inequality in developing countries, but also with recent evidence of rising inequality in various financially advanced economies.

Keywords: banks; Finance; financial markets; inequality (search for similar items in EconPapers)
JEL-codes: D63 G10 G21 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn
Date: 2018-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13330 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Financial structure and income inequality (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13330

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13330

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-16
Handle: RePEc:cpr:ceprdp:13330