An Examination of the Stock Market’s Effect on Economic Inequality

Authors

Nicholas J. Golina, The University of AkronFollow

Abstract

The literature on economic inequality has shown that stock markets can negatively impact aggregate demand because it indicates a higher concentration of wealth in the hands of the top 10% as opposed to the middle class. The stock market could be one of the factors leading to increased inequality. This study contributes to the literature by analyzing stock markets in OECD countries. Building on Tsountas et al (2015), the results showed that stock markets can have a positive impact on inequality, but with weak economic significance. It is recommended that policymakers should focus on factors that more greatly impact inequality.

Recommended Citation

Golina, Nicholas J. (2018) "An Examination of the Stock Market’s Effect on Economic Inequality," Undergraduate Economic Review: Vol. 15: Iss. 1, Article 7.
Available at: https://digitalcommons.iwu.edu/uer/vol15/iss1/7