Skip to main content

Changes in income inequality and the black market premium

Buy Article:

$55.00 plus tax (Refund Policy)


Is a high black market premium for US dollars associated with rising or falling income inequality within a nation? This paper empirically examines this issue within a cross section of countries and finds that the black market premium is strongly associated with rising income inequality as measured by changes in the Gini coefficient. Others have used the black market premium as a proxy to measure protectionist policies so a possible implication is that protectionist policies further skew the distribution of income within a country. However, other measures of protectionist policies are not associated with changes in income inequality. Instead, other factors which might drive the black market premium such as interest rate differentials appear to be more relevant in explaining why the black market premium is positively related with increases in income inequality.

Document Type: Research Article


Affiliations: Department of Economics, Southern Illinois University, Carbondale, IL 62901, USA E-mail:

Publication date: 2003-01-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more