The Effect of Entrepreneurship on Income Inequality in Selected Countries

The Effect of Entrepreneurship on Income Inequality in Selected CountriesAbstractIncome inequality is one of the important socio - economic issues that is very important in development economics the study of the factors affecting it. In this regard, the present study has tried to investigate the impact of entrepreneurship on income inequality in two groups of selected developing and developed countries during the period 2009 - 2019 . In order to achieve more accurate results, entrepreneurship is divided into necessity and opportunistic entrepreneurship groups in the model . For this purpose, the research model has been estimated by approaching panel data and Generalized Moment Method ( GMM ) separately for the two groups of selected countries . The results show that necessity-oriented entrepreneurship has a negative and significant effect on income inequality in both groups of selected countries . However, the estimated coefficient is higher in developing countries . Also, opportunistic entrepreneurship has a positive and significant effect on income inequality in both groups of selected countries. However, the estimated coefficient is higher in developed countries .