Three essays on income inequality

In the last few decades, many low/middle-income countries have opened their stock markets to foreigners and as the global economy continues to develop, poverty problems are becoming more and more serious. Most previous studies address the correlation between income inequality and economic development, and the relationship between stock market liberalization and economy growth. This paper analyzes the effect of stock market liberalization on income inequality. I use the Fixed Effect Model to explore the effects of liberalization while controlling some variables and providing a dummy variable. The results indicate that liberalization is associated with an exacerbated income inequality. The findings remain consistent when the model includes more control variables. These results show that low-income group receives less income shares after liberalization and high-income group receives more labor shares after liberalization.