Various studies have been conducted to determine whether there is a correlation between income inequality and poverty. According to this study, there are several factors which contribute to the development of income inequality and poverty. These factors include drug-related crime rates, the level of expenditures on education and health, and the presence of social security policies. The researchers found that when one of these variables increased by one point, the drug-related crime rate increased by 36%.
Health and education expenditures lead to increased EG
Several studies have been conducted to examine the impact of income and education on health and poverty. Amongst these, GDP, Gini index and education expenditures have been used as indicators to study the relationship between income and health.
The Gini index has been found to be an important factor in determining health inequalities. Having more socio-economic resources can preserve a person’s health advantage over those with less material resources. The quality of food, housing, recreation, and medical care also contribute to health.
Higher national income increases the standard of living and average health. This is accompanied by lower income and health inequalities. Similarly, the presence of a well-functioning legal system can help reduce crime rates.
The correlation between GDP and health inequalities is negative. However, this is not always the case. A recent study by Malinen et al. showed that income inequality affects the growth of developed countries. It has also been suggested that the way we pay for medical care can have an adverse effect on health.
Drug-related crime rates increase up to 36% if there is one-point increment in INC_INEQ
Several studies have linked the Inc_INEQ to crime rates. In particular, a one-point increase in the index leads to a 36-percent rise in drug-related violent crime.
In the 1990s, a 1% increase in the INC_INEQ led to a 0.63% reduction in the POVHCR. This is a strong correlation, and could have been caused by a variety of factors. It could be that the illegal sector provides employment for the unemployed, or that there are resource constraints for law enforcement agencies.
In addition, a judicious distribution of income can also lead to a reduction in crime. A 1% increase in per capita income, for example, could lead to a drop in the crime rate.
A study of 124 countries by Zaman et al. surveyed the INC_INEQ, the PPG index, and the EG. They found that the EG was not sufficient to create the higher INC_INEQ, but the PPG was.
A related measure of the trickle down effect is the GINI index, which measures the inequality in income across countries. This statistic can be a very useful tool to assess the quality of public services in a country.
Social security policies reduce POV
Several studies have investigated the impact of social security policies on income inequality and poverty. However, researches have varied statistical techniques and results. The most common methods of analysis include variance decomposition analysis and impulse response function. In addition, the study includes a second-order coefficient of the PCI to assess the degree of correlation between the variables.
Various economic security programs have been implemented in recent years to reduce poverty and hardship. These programs are designed to cut poverty across all racial and ethnic groups. These programs also help alleviate short-term poverty and improve children’s long-term outcomes. These policies have helped millions of people over the past half-century.
Some economists and researchers have argued that social security policies should be included in the pro-poor growth agenda. They argue that this strategy will help the economy grow while reducing poverty. Although these policies are effective at reducing poverty, they are not a substitute for substantial growth reforms in a region.
Limitations of this study
Identifying and discussing limitations in a study is important because they can influence the results of the research. Limitations can be determined by a variety of factors. They may come from issues with the researcher or methodology. If the sample size is too small, or the demographics are not appropriate, the results will not be generalizable.
A limitation can be apparent at the start of the study or in the course of the study. It is important to address the issue and suggest how the problem can be remedied. Some studies also include a discussion of the strengths of the study. Some journals ask authors to discuss these limits in the discussion section.
Some limitations that are commonly cited in a thesis or publication are sample size, sample design, and a lack of a specific outcome. The article by Price and Murnan (2004) is a good example of a study that acknowledges these limitations.