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  • All HBS Web  (1,041)
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  • July 2011
  • Article

Institutions and Inequality in Single Party Regimes: A Comparative Analysis of Vietnam and China

Despite the fact that China and Vietnam have been the world's two fastest growing economies over the past two decades, their income inequality patterns are very different. In this paper, we take a deep look at political institutions in the two countries, demonstrating... View Details
Keywords: Equality and Inequality; Developing Countries and Economies; Motivation and Incentives; Government and Politics; Policy; Power and Influence; Decision Making; Income; China; Viet Nam
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Malesky, Edmund, Regina M. Abrami, and Yu Zheng. "Institutions and Inequality in Single Party Regimes: A Comparative Analysis of Vietnam and China." Comparative Politics 43, no. 4 (July 2011).
  • 04 Jun 2008
  • Working Paper Summaries

Accountability and Inequality in Single-Party Regimes: A Comparative Analysis of Vietnam and China

Keywords: by Regina Abrami, Edmund Malesky & Yu Zheng
  • 27 Jul 2020
  • Working Paper Summaries

Gender Inequality in Research Productivity During the COVID-19 Pandemic

Keywords: by Ruomeng Cui, Hao Ding, and Feng Zhu
  • 2017
  • Working Paper

Inequality in Knowledge Repository Use in Scaling Service Operations

By: Melissa A. Valentine, Tom Fangyun Tan, Bradley R. Staats and Amy C. Edmondson
To scale service operations requires sharing knowledge across the organization. However, prior work highlights that individuals on the periphery of organizational knowledge sharing networks may struggle to access useful knowledge at work. A knowledge repository (KR)... View Details
Keywords: Knowledge Repository; Scaling Service Operations; Fluid Teams; Groups and Teams; Knowledge Management; Performance
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Valentine, Melissa A., Tom Fangyun Tan, Bradley R. Staats, and Amy C. Edmondson. "Inequality in Knowledge Repository Use in Scaling Service Operations." Harvard Business School Working Paper, No. 13-001, July 2012. (Revised August 2017.)
  • July 2020
  • Article

Higher Economic Inequality Intensifies the Financial Hardship of People Living in Poverty by Fraying the Community Buffer

By: Jon M. Jachimowicz, Barnabas Szaszi, Marcel Lukas, David Smerdon, Jaideep Prabhu and Elke U. Weber
The current research investigates whether higher economic inequality disproportionately intensifies the financial hardship of low-income individuals. We propose that higher economic inequality increases financial hardship for low-income individuals by reducing their... View Details
Keywords: Economic Inequalty; Economy; Income; Equality and Inequality; Poverty; Civil Society or Community
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Jachimowicz, Jon M., Barnabas Szaszi, Marcel Lukas, David Smerdon, Jaideep Prabhu, and Elke U. Weber. "Higher Economic Inequality Intensifies the Financial Hardship of People Living in Poverty by Fraying the Community Buffer." Special Issue on Racism in Action. Nature Human Behaviour 4, no. 7 (July 2020): 702–712.
  • September 2011
  • Article

Political Instability: Effects on Financial Development, Roots in the Severity of Economic Inequality

By: Mark J. Roe and Jordan I. Siegel
We here bring forward strong evidence that political instability impedes financial development, with its variation a primary determinant of differences in financial development around the world. As such, it needs to be added to the short list of major determinants of... View Details
Keywords: Financial Development; Political Instability; Government and Politics; Finance; Growth and Development; Economics; Equality and Inequality
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Roe, Mark J., and Jordan I. Siegel. "Political Instability: Effects on Financial Development, Roots in the Severity of Economic Inequality." Journal of Comparative Economics 39, no. 3 (September 2011): 279–309. (We here bring forward strong evidence that political instability impedes financial development, with its variation a primary determinant of differences in financial development around the world. As such, it needs to be added to the short list of major determinants of financial development. First, structural conditions first postulated by Engerman and Sokoloff (2002) as generating long-term inequality are shown here empirically to be exogenous determinants of political instability. Second, that exogenously-determined political instability in turn holds back financial development, even when we control for factors prominent in the last decade's cross-country studies of financial development. The findings indicate that inequality-perpetuating conditions that result in political instability are fundamental roadblocks for international organizations like the World Bank that seek to promote financial development. The evidence here includes country fixed effect regressions and an instrumental model inspired by Engerman and Sokoloff's (2002) work, which to our knowledge has not yet been used in finance and which is consistent with current tests as valid instruments. Four conventional measures of national political instability — Alesina and Perotti's (1996) well-known index of instability, a subsequent index derived from Banks' (2005) work, and two indices of managerial perceptions of nation-by-nation political instability — persistently predict a wide range of national financial development outcomes for recent decades. Political instability's significance is time consistent in cross-sectional regressions back to the 1960's, the period when the key data becomes available, robust in both country fixed-effects and instrumental variable regressions, and consistent across multiple measures of instability and of financial development. Overall, the results indicate the existence of an important channel running from structural inequality to political instability, principally in nondemocratic settings, and then to financial backwardness. The robust significance of that channel extends existing work demonstrating the importance of political economy explanations for financial development and financial backwardness. It should help to better understand which policies will work for financial development, because political instability has causes, cures, and effects quite distinct from those of many of the key institutions most studied in the past decade as explaining financial backwardness.)
  • May 2020
  • Teaching Note

Income Inequality and the CEO Pay Ratio at TJX Cos

By: Ethan Rouen
Teaching Note for HBS No. 120-063. View Details
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Rouen, Ethan. "Income Inequality and the CEO Pay Ratio at TJX Cos." Harvard Business School Teaching Note 120-116, May 2020.
  • Article

Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints

By: Fernando Borraz, Alberto Cavallo, Roberto Rigobon and Leandro Zipitria
The border effects literature finds that political boundaries have a large impact on relative prices across locations. In this paper we show that the standard empirical specification suffers from selection bias, and propose a new methodology based on binned-quantile... View Details
Keywords: Border Effects; Prices
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Borraz, Fernando, Alberto Cavallo, Roberto Rigobon, and Leandro Zipitria. "Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints." International Journal of Finance & Economics 21, no. 1 (January 2016): 3–35.
  • Research Summary

Optimal Contracts under Inequity Aversion with Voluntary Enforcement (with Tilman Borgers)

We analyze contract structure and efficiency in a Moral Hazard model with possibly fairminded agent and principal when the contract is not automatically enforced but this is a voluntary choice by the contracting parties independently. We find that no penalizing... View Details
  • 02 Jun 2021
  • Research & Ideas

A Rare Find in Health Care: A Simple Solution to Racial Inequity

George Floyd’s murder last year forced many people to recognize the systemic racism that pervades American institutions, from law enforcement to health care. Even so, identifying those inequities is different than fixing them. “I don’t... View Details
Keywords: by Michael Blanding; Health
  • 2016
  • Working Paper

Popular Acceptance of Inequality Due to Innate Brute Luck and Support for Classical Benefit-Based Taxation

By: Matthew C. Weinzierl
U.S. survey respondents' views on distributive justice are shown to differ in two specific, related ways from what is conventionally assumed in modern optimal tax research. A large share of respondents, and in some cases a large majority, resist the full equalization... View Details
Keywords: Equality and Inequality; Attitudes; Taxation; Theory; United States
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Weinzierl, Matthew C. "Popular Acceptance of Inequality Due to Innate Brute Luck and Support for Classical Benefit-Based Taxation." Harvard Business School Working Paper, No. 16-104, March 2016. (Revised July 2016. Also NBER Working Paper Series, No. 22462, July 2016. Also see Notes on Fortune article. Accepted for publication by the Journal of Public Economics.)
  • 2008
  • Working Paper

Structural Closure and Exposure: Formation of Structural Inequality in Managerial Labor Markets

By: Mikolaj Jan Piskorski
Positional advantages arise when actors obtain rewards attached to positions they occupy, but these rewards are not merited by their performance. Existing theory suggests that in competitive markets there should be no positional advantages. This paper proposes a model... View Details
Keywords: Compensation and Benefits; Jobs and Positions; Managerial Roles; Performance Improvement; Alignment; Competitive Advantage; Equality and Inequality
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Piskorski, Mikolaj Jan. "Structural Closure and Exposure: Formation of Structural Inequality in Managerial Labor Markets." Harvard Business School Working Paper, No. 08-086, April 2008.
  • 02 Jul 2015
  • Working Paper Summaries

Mums the Word! Cross-national Effects of Maternal Employment on Gender Inequalities at Work and at Home

Keywords: by Kathleen L. McGinn & Elizabeth Long Lingo
  • 2014
  • Article

Unequality: Who Gets What and Why It Matters

By: Michael I. Norton
Who should get what, and what are the consequences? Economic inequality in the United States has been rising for decades, yet only recently have behavioral scientists explored two central questions surrounding the optimal level of inequality. First, what are the... View Details
Keywords: Inequality; Ethics; Productivity; Gambling; Equality and Inequality; Fairness; Income; Performance Productivity; United States
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Norton, Michael I. "Unequality: Who Gets What and Why It Matters." Policy Insights from the Behavioral and Brain Sciences 1, no. 1 (2014): 151–155.
  • July 2005
  • Article

Profit Maximization versus Disadvantageous Inequality in Choice Behavior: The Impact of Self-Categorization

By: S. M. Garcia, A. Tor, M. Bazerman and D. T. Miller
Keywords: Profit; Decision Choices and Conditions; Behavior; Social Psychology
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Garcia, S. M., A. Tor, M. Bazerman, and D. T. Miller. "Profit Maximization versus Disadvantageous Inequality in Choice Behavior: The Impact of Self-Categorization." Journal of Behavioral Decision Making 18, no. 3 (July 2005): 187–198.
  • 2000
  • Working Paper

Resources, Power and Prestige: Formulation of Structural Inequality in Social Exchange Networks

By: Bharat Anand and M.J. Piskorski
Citation
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Anand, Bharat, and M.J. Piskorski. "Resources, Power and Prestige: Formulation of Structural Inequality in Social Exchange Networks." Harvard Business School Working Paper, No. 00-070, January 2000. (Formerly Titled: Why Are Networks Important.)
  • 2012
  • Chapter

Inflection Point: New Vision, New Strategy, New Organization

By: Nancy O. Andrews and Nicolas P. Retsinas
What does it cost to build a great society? More pointedly, what does it cost to lose a great society? Since the War on Poverty began almost 50 years ago, investments in America’s communities have spurred those questions. Today we face a society more unequal than... View Details
Keywords: Income Inequality; Equality and Inequality; Income; Residency; Poverty
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Andrews, Nancy O., and Nicolas P. Retsinas. "Inflection Point: New Vision, New Strategy, New Organization." In Investing in What Works for America's Communities: Essays on People, Place & Purpose, edited by Nancy O. Andrews, David J. Erickson, Ian J. Galloway, and Ellen S. Seidman, 407–419. San Francisco, CA: Federal Reserve Bank of San Francisco, 2012.
  • 2021
  • Working Paper

The Great Unequalizer: Initial Health Effects of COVID-19 in the United States

By: Marcella Alsan, Amitabh Chandra and Kosali I. Simon
We measure inequities from the COVID-19 pandemic on mortality and hospitalizations in the United States during the early months of the outbreak. We discuss challenges in measuring health outcomes and health inequality, some of which are specific to COVID-19 and others... View Details
Keywords: COVID-19; Health Inequality; Health Pandemics; Demographics; Equality and Inequality
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Alsan, Marcella, Amitabh Chandra, and Kosali I. Simon. "The Great Unequalizer: Initial Health Effects of COVID-19 in the United States." NBER Working Paper Series, No. 28958, June 2021.
  • 2015
  • Working Paper

A Theory of Intergenerational Mobility

By: Gary Becker, Scott Duke Kominers, Kevin Murphy and Jorg L. Spenkuch
We develop a model of intergenerational resource transmission that emphasizes the link between cross-sectional inequality and intergenerational mobility. By drawing on first principles of human capital theory, we derive several novel results. In particular, we show... View Details
Keywords: Intergenerational Mobility; Inequality; Complementarities; Human Capital; Equality and Inequality; Income; Family and Family Relationships
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Becker, Gary, Scott Duke Kominers, Kevin Murphy, and Jorg L. Spenkuch. "A Theory of Intergenerational Mobility." Working Paper, August 2015.
  • 2019
  • Chapter

Blacks Leading Whites: How Mutual and Dual (Ingroup and Outgroup) Identification Affect Inequality

By: Lumumba Babushe Seegars and Lakshmi Ramarajan
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Seegars, Lumumba Babushe, and Lakshmi Ramarajan. "Blacks Leading Whites: How Mutual and Dual (Ingroup and Outgroup) Identification Affect Inequality." Chap. 19 in Race, Work, and Leadership: New Perspectives on the Black Experience, edited by Laura Morgan Roberts, Anthony J. Mayo, and David A. Thomas. Boston, MA: Harvard Business Review Press, 2019.
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