Urbanization can help reduce income inequality

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

25 Scopus Citations
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Original languageEnglish
Article number1
Journal / Publicationnpj Urban Sustainability
Volume2
Online published10 Jan 2022
Publication statusPublished - 2022

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Abstract

The global community has been confronted with rising income inequality, in particular, for those least developed countries (LDCs), since the same level of inequality as in advanced countries would push many LDCs into abject poverty. This paper focuses on income inequality in developing countries, particularly LDCs. First, we demonstrate the infeasibility of fiscal measures in resolving income inequality even in developed countries. Second, we show that inequality in LDCs can be largely explained by urban-rural gap. Third, we uncover the benign impacts of urbanization on urban-rural gap. This leads us to propose an out-of-box strategy-containing income inequality by promoting well-managed urbanization. Fourth, we reveal a misperception that may have contributed to the neglect of urban-rural gap in constituting national inequality. This has possibly caused anti-urbanization mentalities and practices, with adverse distributional consequences. Finally, we provide evidence-based policy suggestions aimed at reducing income inequality and poverty-two major goals of SDGs.

Research Area(s)

  • ECONOMIC-GROWTH, MIGRATION, IMPACT

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