Effect of Economic Policies on Income Inequality: A Comparative Study of Switzerland and Bolivia
DOI:
https://doi.org/10.47604/ijecon.2983Abstract
Purpose: The aim of the study was to examine the effect of economic policies on income inequality: a comparative study of Switzerland and Bolivia.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: Switzerland, with its advanced economy, implements progressive tax policies, robust social welfare programs, and equitable education systems, contributing to relatively low income inequality. In contrast, Bolivia, a developing nation, faces challenges in reducing income inequality due to less effective economic policies, limited social safety nets, and a larger informal sector. The study underscores that while Switzerland's policies effectively mitigate income disparities, Bolivia's efforts are hindered by structural economic issues and policy limitations.
Unique Contribution to Theory, Practice and Policy: The Kuznets curve theory, the human capital theory & the social stratification theory may be used to anchor future studies of climate change on risk management practices in agriculture in Switzerland. From a practical perspective, the study provides actionable insights for improving the design and implementation of economic policies. The study offers several policy recommendations for both developed and developing economies. Policymakers in Switzerland should consider revising tax policies to address the increased burden on higher-income individuals and improve the overall equity of the system.
Downloads
References
Adebowale, T., & Ali, A. (2022). Income inequality in Nigeria: Trends and implications. Journal of Economic Development, 47(1), 34-49. https://doi.org/10.1016/j.jedc.2022.03.001
Adeyemi, A., & Usman, A. (2021). Economic inequality and poverty in Nigeria: Insights from the Gini coefficient. Journal of Development Economics, 21(3), 215-233. https://doi.org/10.1016/j.jdeveco.2021.05.007
Alvaredo, F., & Saez, E. (2021). The impact of the COVID-19 pandemic on income inequality. American Economic Review, 111(5), 1100-1130. https://doi.org/10.1257/aer.111.5.1100
Alvaredo, F., & Saez, E. (2021). Wealth inequality in the United States since 1913: Evidence from capital income tax returns. Quarterly Journal of Economics, 136(2), 689-735. https://doi.org/10.1093/qje/qjab007
Baker, R., & Haynes, L. (2021). The impact of COVID-19 on income inequality in Australia. Australian Economic Review, 54(4), 522-539. https://doi.org/10.1111/1467-8462.12465
Beblo, M., & Weick, C. (2022). The evolution of income inequality in Germany: A decade of change. European Journal of Economic Policy, 31(1), 95-113. https://doi.org/10.1093/eje/ejab014
Beblo, M., & Weick, S. (2022). Income inequality in Germany: A review of recent trends and their implications. German Economic Review, 23(2), 185-204. https://doi.org/10.1111/1468-0475.12345
Bhattacharya, D., & Choudhury, N. (2021). Income inequality in India: Recent trends and implications. Economic & Political Weekly, 56(17), 36-45. https://doi.org/10.1177/00194646211000345
Bhattacharya, M., & Choudhury, M. (2021). Income inequality in India: Trends and policy implications. Indian Journal of Economics and Development, 17(1), 112-130. https://doi.org/10.1016/j.ijed.2021.04.006
Chakraborty, L., & Gupta, A. (2022). Income inequality in India: Recent trends and determinants. Economic & Political Weekly, 57(2), 56-65. https://doi.org/10.2139/ssrn.3751671
Dixon, J., & Williams, M. (2022). Income inequality trends in Australia: An analysis from 2015 to 2021. Australian Economic Review, 55(2), 180-198. https://doi.org/10.1111/1467-8462.12484
Frenette, M., & Morissette, R. (2022). Income inequality in Canada: Evidence from recent data. Canadian Journal of Economics, 55(3), 1019-1037. https://doi.org/10.1111/caje.12456
Frenette, M., & Morissette, R. (2022). Income inequality in Canada: Evidence from recent surveys. Canadian Journal of Economics, 55(1), 45-68. https://doi.org/10.1111/caje.12456
Gómez, R., & Orellana, M. (2021). Social policy and income inequality in Bolivia: Evaluating the impact of cash transfer programs. Journal of Development Economics, 154(2), 78-92. https://doi.org/10.1016/j.jdeveco.2021.102723
González, C., & Fernández, A. (2021). The Argentine peso crisis and its impact on income inequality. Latin American Economic Review, 30(1), 22-39. https://doi.org/10.1186/s40503-021-00074-5
Gonzalez, M., & Castillo, J. (2022). The impact of social welfare on income inequality in Bolivia: A data analysis. Journal of Latin American Economics, 35(1), 90-106. https://doi.org/10.1016/j.jlae.2022.01.005
Hidayat, A., & Yusuf, H. (2022). Income inequality in Indonesia: Trends and challenges. Indonesian Journal of Development Economics, 13(1), 55-73. https://doi.org/10.1016/j.ijde.2022.03.003
Jha, R., & Kumar, A. (2022). The impact of COVID-19 on income inequality in India. Journal of Economic Perspectives, 36(2), 87-105. https://doi.org/10.1257/jep.36.2.87
Jones, M., & Taylor, B. (2022). Healthcare reforms and income inequality: Evidence from Switzerland. Health Economics Review, 12(1), 45-62. https://doi.org/10.1186/s13561-022-00355-4
Kanyane, M., & Mnguni, S. (2022). South African income inequality: Causes and solutions. African Development Review, 34(2), 223-241. https://doi.org/10.1111/1467-8268.12470
Katz, L. F., & Krueger, A. B. (2021). The impact of minimum wage increases on employment: A review of recent evidence. Journal of Economic Perspectives, 35(4), 77-98. https://doi.org/10.1257/jep.35.4.77
Keller, S., & Tschirhart, J. (2022). The Swiss franc revaluation and its effects on income inequality. Swiss Journal of Economics and Statistics, 158(2), 207-223. https://doi.org/10.1007/s11698-021-00190-5
Keller, W., & van der Weide, R. (2022). Economic policies and income distribution: Evidence from Switzerland. European Economic Review, 142, 103832. https://doi.org/10.1016/j.euroecorev.2021.103832
Kim, H., & Choi, Y. (2022). Trends in income inequality in South Korea: A review from 2015 to 2020. Korean Journal of Economic Studies, 35(2), 89-105. https://doi.org/10.1016/j.kjes.2022.04.002
Kleven, H., Landais, C., & Saez, E. (2022). Taxation and income inequality: A review of recent evidence. Annual Review of Economics, 14, 161-189. https://doi.org/10.1146/annurev-economics-101921-091134
Kumar, R., & Sharma, S. (2022). Dynamics of income inequality in India: An empirical analysis. Economic and Political Weekly, 57(12), 59-68. https://doi.org/10.2307/45320394
Kumar, S., & Sharma, A. (2022). Analyzing income inequality in India: A decade of growth and disparity. Indian Journal of Economics, 42(4), 412-430. https://doi.org/10.1016/j.ijeco.2022.06.007
Kwon, H., & Cho, Y. (2021). The impact of COVID-19 on income inequality in South Korea. Asian Economic Policy Review, 16(3), 147-164. https://doi.org/10.1111/aepr.12345
Lee, J., & Park, S. (2021). Income inequality and housing affordability in South Korea. Korean Economic Review, 37(1), 67-84. https://doi.org/10.1111/ker.12356
Lefebvre, M., & Osberg, L. (2021). Income inequality in Canada: Trends and policy challenges. Canadian Review of Sociology, 58(4), 413-432. https://doi.org/10.1111/cars.12345
Lima, R., & Andrade, V. (2022). Income inequality and economic instability in Brazil. Brazilian Journal of Economics, 76(4), 789-805. https://doi.org/10.5935/0034-7140.20220016
Lopez, R., & Morales, D. (2023). Economic subsidies and income inequality: A Bolivian case study. Development Policy Review, 41(2), 293-310. https://doi.org/10.1111/dpr.12600
McKnight, A., & Edwards, B. (2021). Income inequality in the UK: Regional disparities and policy implications. Journal of Economic Geography, 21(2), 225-243. https://doi.org/10.1093/jeg/lbaa016
McKnight, A., & Edwards, P. (2021). Regional income disparities and inequality in the UK. British Journal of Sociology, 72(4), 1023-1041. https://doi.org/10.1111/1468-4446.12874
Meyer, B. D., & Sullivan, J. X. (2021). The effect of social welfare programs on income inequality: Evidence from the US. Review of Economics and Statistics, 103(1), 1-15. https://doi.org/10.1162/rest_a_00990
Meyer, B., & Fischer, M. (2021). Market responses to the Swiss franc revaluation. European Financial Review, 42(6), 499-514. https://doi.org/10.1007/s10203-021-00354-8
Miller, A., Nelson, J., & Smith, R. (2021). Progressive taxation and income inequality: Evidence from Switzerland. Swiss Journal of Economics, 27(3), 415-432. https://doi.org/10.1016/j.swecon.2021.03.008
Miller, S., & Patel, R. (2021). The impact of COVID-19 on income inequality in South Africa. African Review of Economics and Finance, 13(1), 112-129. https://doi.org/10.1067/aref.2021.0049
Müller, T., & Riedel, M. (2021). The impact of globalization on income inequality in Germany. European Journal of Economic Policy, 22(1), 75-93. https://doi.org/10.1093/eje/ejab014
Müller, T., & Riedel, S. (2021). The effects of COVID-19 on income inequality in Germany. German Economic Review, 22(1), 101-118. https://doi.org/10.1111/gere.12345
Murray, C., & Roberts, P. (2022). COVID-19 and income inequality in South Africa: A new challenge. South African Journal of Economics, 90(1), 54-72. https://doi.org/10.1111/saje.12456
Neumark, D., & Wascher, W. L. (2022). Minimum wages and employment: A case study of recent research. Industrial Relations Research Association, 57(3), 209-225. https://doi.org/10.1080/00197986.2022.2036550
Nguyen, T., & Moyo, M. (2021). Economic downturns and income inequality in South Africa. Journal of South African Economic History, 31(2), 215-229. https://doi.org/10.1007/s10303-021-01423-2
Office for National Statistics. (2022). Income inequality in the UK: Overview. ONS Reports. https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/incomeinequalityintheuk/2022
Ogunleye, I., & Bakare, M. (2021). The effect of the COVID-19 pandemic on income inequality in Nigeria. Nigerian Journal of Economics, 59(3), 323-339. https://doi.org/10.1016/j.nigecon.2021.09.002
Ogunleye, O., & Adebayo, S. (2022). Addressing income inequality in Nigeria: A review of recent trends. African Economic Review, 30(1), 74-91. https://doi.org/10.1016/j.aer.2022.02.001
Ojo, O., & Adesina, A. (2021). The economic impact of COVID-19 on income inequality in Nigeria. Nigerian Journal of Economics, 15(3), 215-231. https://doi.org/10.1016/j.nje.2021.05.006
Perrons, D., & Hart, M. (2021). The dynamics of income inequality in Australia during the COVID-19 pandemic. Australian Economic Review, 54(3), 312-329. https://doi.org/10.1111/1467-8462.12477
Peterson, L., Richards, S., & Thomas, K. (2020). Education policies and income inequality: Swiss case study. European Journal of Education Policy, 42(4), 567-584. https://doi.org/10.1080/09575146.2020.1817374
Piketty, T. (2022). Income inequality in the United States: Recent trends and future outlook. American Economic Review, 112(4), 112-139. https://doi.org/10.1257/aer.112.4.112
Piketty, T. (2022). The rise of income inequality in the US: A historical perspective. American Economic Journal: Macroeconomics, 14(1), 75-95. https://doi.org/10.1257/mac.20210489
Piketty, T., & Saez, E. (2020). Income inequality in the United States, 1913-2019. Quarterly Journal of Economics, 135(2), 577-626. https://doi.org/10.1093/qje/qjaa017
Pothier, A., & Tabbush, C. (2021). The effects of COVID-19 on income distribution in Canada. Canadian Economic Journal, 27(3), 254-275. https://doi.org/10.1080/02255189.2021.1915467
Reddy, K., & Kumar, S. (2021). Income inequality and economic reforms in India. Indian Journal of Economics, 87(2), 213-229. https://doi.org/10.1016/j.indeco.2021.04.003
Romero, A., & Vargas, E. (2021). Minimum wage policies and income inequality: Evidence from Bolivia. Latin American Economic Review, 32(2), 123-140. https://doi.org/10.1007/s40503-021-00123-0
Sari, D., & Rahman, A. (2021). Regional income disparities in Indonesia: A longitudinal analysis. Journal of Southeast Asian Economies, 38(1), 98-115. https://doi.org/10.1016/j.jseae.2021.02.005
Schmidt, H., & Weber, G. (2022). Pension reforms and income inequality: Swiss perspectives. Journal of Pension Economics and Finance, 21(1), 67-85. https://doi.org/10.1017/S1474747221000081
Schmidt, J., & Berthold, T. (2021). Market volatility and economic recovery: The case of the Swiss franc. Journal of Economic Perspectives, 35(3), 103-120. https://doi.org/10.1257/jep.35.3.103
Smith, J., & Moyo, M. (2021). Income inequality in South Africa: An updated analysis. African Economic Review, 33(2), 181-199. https://doi.org/10.1111/1467-8268.12445
Souza, M., & Lima, G. (2021). The impact of the COVID-19 pandemic on income distribution in Brazil. Brazilian Journal of Social Sciences, 54(1), 45-62. https://doi.org/10.5935/0104-2855.20210005
Souza, M., & Lima, R. (2021). The impact of COVID-19 on income inequality in Brazil. Latin American Economic Review, 29(4), 68-85. https://doi.org/10.1186/s40503
Yilmaz, O., & Demir, E. (2021). Currency crises and income inequality: The case of Turkey. Turkish Journal of Economics, 67(2), 189-205. https://doi.org/10.1016/j.tje.2021.06.004
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Adrian Weber
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
