The Problems on Income Inequality

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Updated: Apr 19, 2019
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The Problems on Income Inequality essay

In this part, we continue to briefly summarize our empirical analyses based on the ARDL model techniques adopted. The findings of this study are summarized below:- First, the objectives of the study are analysis by using cointegration analysis tests and ARDL bound test on the national level data covering the period of 2004-2016. The first step taking to cointegration test is carry-out unit root test for each variable and finding their order of integration. The results indicate that all the variable in our analysis are integrated of the order of first difference showing that they are non-stationary on levels but stationary at I(1). From determining the stationary of variables its enable us to go on with cointegration tests between violent crime and income inequality and their related socio-economic variable and governance indicators, to examine the long-run effects of the economic variables and good governance indicators on violent crime in Nigeria crime index.

The empirical results of both the objectives of the study prove there is evidence of cointegration between the variables employed of the study on violent crime and income inequality in Nigeria crime index and economic growth. Second, the empirical findings from the regression of four models on objective one indicate that there is long-term relationship except for rule of law and the interaction section for rule of law and income inequality (INEROL). Because that rule of law is not affected by the economic condition. In model 3 and 4, column 3 and 4, the coefficient of income inequality showed a positive sign and significant at 1% level which is reconciled with our expectation that increase on income inequality, increase the rate of murder in Nigeria. 1 percent increase in the income inequality (Gini index) increase murder rate by 2.88 and 3.28 percent respectively. Thirdly, the regression results indicate that the coefficient of education has a significant effect on murder rate although the results of the study show that 1 percent decrease in education level, increase the rate of murder by 1.70, 5.69 and 2.15 percent respectively. Better educational attainment decreases the occurrence of murder rate; through educations effect on improving the country economic growth and reduced inequality.

Therefore, policy implication from these findings is not that educational performances should be encouraged, but that educational policy reforms should seek that income opportunity and employment associated with educational achievement. Fourth, the empirical results of this study indicate that there are statistically significant effects of unemployment on murder rates, where sizes of the unemployment-crime effects relative to a total incident of murder at the national aggregate, therefore, it implies that policies on targeted in improving the employment welfares of workers facing the obstacles can be an operational tools for fighting crime. Attention should be given to the unemployed individuals and those employed workers with defensibly the worst employment hopeful that are most likely to be participated with the criminal system. There are a various studies on the determinants of income inequality and crimes, suggested by an increase sense of need in tackling criminality and reducing income discrepancies. This study contributes to the body of knowledge by investigating the determinants of income inequality and violent crime rates and causes of income inequality using time series data for the period 2004-2016 in Nigeria. Three problems on income inequality that have drawn much attention in the empirical studies were examined; such as, determining the relationship between income inequality and violent crime (the study is restricted to murder rates) , identifying the main causes of income inequality and determining criminal increase in the data for the duration of the study. 8 control variables and one interaction term were used, along with a series of economic and institutional quality variables.

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The problems on income inequality. (2019, Apr 19). Retrieved from