Financial structure and income inequality

Michael Brei, Giovanni Ferri and Leonardo Gambacorta

Post-Print from HAL

Abstract: We empirically investigate whether financial structures affect income inequality. Using panel data for 97 economies covering above two decades preceding the FinTech surge we uncover a non-monotonic relationship. More finance reduces income inequality up to a certain point, beyond which inequality rises if finance expands via market-based financing, while it does not when finance grows via bank lending. The finance-inequality relationship is not structurally affected by the occurrence of crises, while it is reinforced in countries featuring a higher degree of financial openness. Financial deepening always reduces inequality when it takes the form of improved financial access.

Date: 2023-03
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published in Journal of International Money and Finance, 2023, 131, pp.102807. ⟨10.1016/j.jimonfin.2023.102807⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Financial structure and income inequality (2023)
Working Paper: Financial structure and income inequality (2018)
Working Paper: Financial structure and income inequality (2018)
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:hal:journl:hal-04126139

DOI: 10.1016/j.jimonfin.2023.102807

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().