Finance and Inequality in Thailand
Keywords:
Inequality, Kuznets' curve, social mobility, formal financial access, borrowing constraints, risk managementAbstract
Although income inequality within Thailand is considerable, it is not exhibiting any alarming upward trend. On the other hand, consumption inequality has been steadily decreasing over the last decade. The relationship between income inequality and income per-capita corresponds to a Kuznets' curve, which represents an inverted-U shape.The social mobility of Thai households, especially those with formal access to finance, is reasonably high. This paper outlines findings concerning two main mechanisms, risk management and borrowing constraints, through which formal financial access can affect inequality, and provides supporting empirical evidence for the conclusions presented.
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