Star (-) Watch (-)

Income Inequality from Kuznets Perspective

Regression Analysis

Hypotheses

H1: Tertiarisation increases income inequality.
H2: The effect of Tertiarisation depends on time varying variables.

Data

n= 2504 communities, 4 waves (1995,2001,2005,2008)
Y= Gini of taxable income
X= employees by sector on community-level (log-scale)

Method

Hybrid-Model with separation of between and within effects.


Y=Gini
Constant .2232 (.0083)***
between effect of full-time jobs (log) in primary sector (1995) -.0136 (.0012)***
between effect of full-time jobs (log) in secondary sector (1995) -.0169 (.0012)***
between effect of full-time jobs (log) in tertiary sector (1995) .0050 (.0016)**
within effect of full-time jobs (log) in primary sector (1995) .0000 (.0016)
within effect of full-time jobs (log) in secondary sector (1995) .0013 (.0010)
within effect of full-time jobs (log) in tertiary sector (1995) -.0033 (.0017)*
linear time trend .0002 (.0002)
Interaction: between effect primary X linear time trend -.0002 (.0000)***
Interaction: between effect secondary X linear time trend .0000 (.0000)
Interaction: between effect tertiary X linear time trend .0002 (.0001)***
Interaction: within effect primary X linear time trend .0003 (.0002)
Interaction: within effect secondary X linear time trend .0002 (.0001)
Interaction: within effect tertiary X linear time trend .0004 (.0002)*
Log taxable inhabitants .0328 (.0022)***
R2 0.1425
Adj. R2 0.1423
Num. obs. 10017
***p < 0.001, **p < 0.01, *p < 0.05