Forging a Link between Human Development and Income Inequality

This study based on the evidence of ninety countries across the globe examines the
possible linkage between human development and income inequality. Global
inequalities in income and living standards widened between nations as well as
within nations according to the latest annual United Nations Human Development
Report. Cross-country evidence on income inequality and human developmet
suggest that they are negatively correlated and causality runs in both directions.

When human development is improved ( High Human Development), income
distribution tends to be more fair, also when income distribution is more equal,
human development tends to improve. On the other hand, medium and low levels
of human development tend to increase income inequality.

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