Anomaly, class division, and decoupling in income dynamics

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Authors: Jaeseok Hur, Meesoon Ha, Hawoong Jeong
Cited by: 1
References: 44

Abstract

Economic inequality emerges from the interplay between regional growth-rate differences and the interaction network that couples regions. We propose a minimal income-dynamics model, where heterogeneity is governed by growth-rate assortativity A and regional concentration R, allowing us to quantify the spatiotemporal patterns of empirically observed log-income distributions. To systematically analyze these patterns, we derive closed-form approximations for the Hellinger distance and the Gini index in limiting configurations. Our findings highlight the spatial segregation of growth rates as a key driver of economic class division and demonstrate how small-world shortcuts in the underlying network can disrupt this segregation. Finally, our framework provides a robust explanation for the bimodality and strong regional correlations found in global income distributions.

Fields of Study & Subjects

Complex Systems and Time Series Analysis Income Poverty and Inequality Intergenerational and Educational Inequality Studies

Publication details

Journal / source
Physical review. E
Publisher
American Physical Society (APS)
Volume
113
Issue
5
Pages
054305–054305
Publication date
22 April 2026
Language
EN