Publications  Income Distribution


8. Regions share a variety of attributes. If all relevant variables were included in the regressions, pure geographic location should be irrelevant. But two of the five regions differ significantly from the other three in income distribution for GINI, after taking account of a number of region-related variables - education, socio-political dualism, communist governments and structure of exports. This may be partly due to inadequate measurement. We use a dummy variable for dualism, and therefore fail to capture differences in degree of dualism. There may be similar qualitative differences in education and other variables across the regions. In addition there appear to be excluded variables. The distribution of wealth, particularly of land, undoubtedly affects income distribution, but is not included in our analysis, for lack of a good measure.


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