Income Distribution Commons^™

The Labor Share Question In China, Hao Qi

Doctoral Dissertations

In this study I explore why China’s labor share measured by the conventional approach experienced a major decline over the period from the mid-1990s to the outbreak of the global financial and economic crisis in 2008. I adopt a Marxian approach to address this question. Following the Marxian approach, I focus on how the power relation in the sphere of production affects labor’s share. I argue that major changes in the power relation that took place during the transition of China’s economic system have played a crucial role in the changes of distribution. To this end, I build homogenous series …

Decomposing Ldc Inequality, Gary S. Fields

Gary S Fields

[Excerpt] At the present time, there is great interest among development economists in the problem of economic inequality in less developed countries (LDCs). Studies of the determinants of inequality follow either of two general approaches. The more traditional approach is associated with names like Kuznets (1963), Chenery and associates (1960, 1968, 1975), Adelman and Morris (1973), Ahluwalia (1976) and Chiswick (1971). These studies share a common methodology, consisting basically of looking at a cross-section of countries, and (1) measuring the degree of inequality in each, (2) measuring other characteristics of each country (e.g., level of GNP, its rate of growth, …

Changing Labor Market Conditions And Economic Development In Hong Kong, The Republic Of Korea, Singapore, And Taiwan, China, Gary S. Fields

Gary S Fields

In the newly industrializing economies (NIEs) of Hong Kong, the Republic of Korea, Singapore, and Taiwan (China), the entire working population has benefited from labor market institutions. The East Asian NIEs attained and maintained generally full employment, improved their job mixes, raised real earnings, and lowered their rates of poverty. This article reaches two principal conclusions. First, labor market conditions continued to improve in all four economies in the 1980s at rates remarkably similar to their rates of aggregate economic growth. Second, labor market repression was not a major factor in the growth experiences of these economies in the 1980s. …

Higher Education And Income Distribution In A Less Developed Country, Gary S. Fields

Gary S Fields

[Excerpt] The primary purpose of this paper is to empirically test among both the intra- and the inter-generational version of these three hypotheses for higher (i.e. post-secondary) levels of education for one less developed country, Kenya. A secondary purpose is to investigate other economic aspects of spending on higher education, most notably the question of horizontal equity in school finance. Before proceeding, a methodological point is in order. There is no consensus in the public economics literature on what is a suitable criterion for assessing the equitability of a fiscal programme. At least three criteria may be distinguished (the terminology …

Private Returns And Social Equity In The Financing Of Higher Education, Gary S. Fields

Gary S Fields

[Excerpt] A widespread phenomenon in developing countries has been the rapid growth of schools and institutions of higher learning resulting in a so-called ‘education explosion’. One possible explanation for the education explosion is that education is a profitable personal investment, as evidenced by high private rates of return. The high private returns are translated into demands on politicians for additional schooling spaces. To gain or maintain public favour, each politician uses his influence to try to increase the number of schools in his constituency. By this chain of events, growth of educational systems might be anticipated as long as private …

The Dynamics Of Poverty, Inequality And Economic Well-Being: African Economic Growth In Comparative Perspective, Gary S. Fields

Gary S Fields

Two hundred and fifty million Africans (about 45% of the population) are poor. In rural areas, where most Africans live, there is, alas, a 'poor majority'. Rural poverty rates range from 37% in Madagascar and 41% in Kenya to 88% in Zambia and 94% in Ghana (Table 1). It is hard to imagine an issue in development economics that is of greater importance to humankind than the effects of economic growth on poverty and economic well-being. Yet there is remarkably little consensus on this vitally important issue, as illustrated by the following two polar positions: New patterns of growth will …

Changes In Poverty And Inequality In Developing Countries, Gary S. Fields

Gary S Fields

This paper presents new data on poverty, inequality, and growth in those developing countries of the world for which the requisite statistics are available. Economic growth is found generally but not always to reduce poverty. Growth, however, is found to have very little to do with income inequality. Thus the "economic laws" linking the rate of growth and the distribution of benefits receive only very tenuous empirical support here.

Income Distribution In Developing Economies: Conceptual, Data, And Policy Issues In Broad-Based Growth, Gary S. Fields

Gary S Fields

[Excerpt] The aim of economic development is to raise the standard of living of a country's people, especially its poor. Economic growth, particularly when broadly based, is a means to that end. 'Underdevelopment' can be defined as a state of severely constrained choices. When one is choosing from among an undesirable set of alternatives, the outcome will itself be undesirable. Standards of living will be low. If standards of living are to be improved, people must have a better set of alternatives from which to choose. 'Economic development' is the process by which the constraints on choices are relaxed. Based …

Public Actors In Private Markets: Toward A Developmental Finance State, Robert Hockett, Saule Omarova

Saule T. Omarova

The recent financial crisis brought into sharp relief fundamental questions about the social function and purpose of the financial system, including its relation to the “real” economy. This Article argues that, to answer these questions, we must recapture a distinctively American view of the proper relations among state, financial market, and development. This programmatic vision – captured in what we call a “developmental finance state” – is based on three key propositions: (1) that economic and social development is not an “end-state” but a continuing national policy priority; (2) that the modalities of finance are the most potent means of …

The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra

Upjohn Institute Working Papers

Using unique longitudinal administrative tax panel data for the District of Columbia (DC), we assess the combined effect of the DC supplemental earned income tax credit (EITC) and the federal EITC on poverty and income dynamics within Washington, DC, from 2001 to 2011. The EITC in DC merits investigation, as the DC supplement to the federal credit is the largest in the nation. The supplemental DC EITC was enacted in 2000, and has been expanded from 10 percent of the federal credit in 2001 to 40 percent as of 2009. To implement the study, we estimate least squares models with …

Assessing The Cost Of Discrimination, Madhavi Venkatesan

Madhavi Venkatesan

In economics, discrimination is modeled as a cost that individuals are willing to bear to limit contact or interaction with specific types or groups of individuals. As a result, discrimination is evaluated as though it were a rational behavior rather than a sub-optimal action that prevents the attainment of a more optimal social justice-based sustainable outcome. In my Spring 2015 Economics of Race (ECON 427) course we explored the contribution of economics with respect to the persistence of discrimination and specific to the manner in which the discipline has evaluated the cost and benefit of discrimination. The presentation includes both …

Determining The Effect Of The Minimum Wage On Income Inequality, Benjamin S. Litwin

Student Publications

Many recent studies have shown a significant increase to income inequality since the 1980s. One of the proposed methods for fixing this trend is to increase the minimum wage, since this policy would help those at the low end of the income spectrum to see economic growth. To analyze the effectiveness of this policy, we studied data from countries that are part of the Organization for Economic Development and Cooperation. By forming an econometric model to account for many factors that affect income inequality in nations around the world, including the real value of the minimum wage, we can determine …

Earnings Inequality In Germany, Katharine G. Abraham, Susan N. Houseman

Susan N. Houseman

Recent studies have documented the growth of earnings inequality in the United States during the 1980s. In contrast to these studies' findings, our analysis of micro data for the former West Germany yields virtually no evidence of growth in earnings inequality over the same period. Between 1978 and 1988, a reduction in the dispersion of earnings among workers in the bottom half of the earnings distribution led to a narrowing of the overall dispersion of earnings in Germany. Earnings differentials across education and age groups remained roughly stable, and there was no general widening of earnings differentials within either education …

Economic Interrelationships And Impacts Of The Aviation/Aerospace Industry In The State Of Florida Using Input-Output Analysis, Kelly A. Whealan-George

Doctoral Dissertations and Master's Theses

The study provided a detailed description of the interrelatedness of the aviation and aerospace industry with principal industries in Florida and Volusia County (VC) using Input-Output (IO) analysis. Additionally, this research provided an economic impact analysis of the creation of a university research park in Daytona Beach (DB). The economic impact measures included not only direct economic output and industry employment descriptions but also described the multiplier effects in the form of indirect and induced impacts using data for 2012.

This research concluded the average labor income of the aviation and aerospace industry was higher than average labor income in …

Living Wages And Local Governments, Timothy J. Bartik

Timothy J. Bartik

No abstract provided.

Thinking About Local Living Wage Requirements, Timothy J. Bartik

Timothy J. Bartik

This paper reviews what we currently know about the benefits and costs of different varieties of a "living wage": a local government requirement, now adopted by over 50 local governments, for wages above the federal minimum imposed on employers with some financial link to the local government. The review includes economic theory, empirical research on local labor markets, and empirical research on the living wage. The paper concludes that moderate living wage requirements applied to the local government's own employees, and contractors' and grantees' employees who are funded by the local government, may do more good than harm. Excessive living …

Stagnant Structure Of Workforce Among Scheduled Tribes (Sts) In Andhra Pradesh, Venkatanarayana Motkuri

Venkatanarayana Motkuri Mr.

In the perspective of inclusive growth, generating and providing productive employment opportunities especially for the disadvantaged groups would enable and empower people belonging to these groups to contribute to the growth and benefit from it. In this context the paper presents a macro view of changes in the structure of the workforce of Scheduled Tribes in Andhra Pradesh its impact in the inclusive growth perspective. The analysis indicates that although there has been progress on many development indicators in the ST community in the state, they still lagged behind the ‘other’ social groups. Slow progress in expected change in structure …

Economic Development And Female Labor Force Participation In The Middle East And North Africa: A Test Of The U-Shape Hypothesis, Kelsey A. Chapman

Gettysburg Economic Review

This paper investigates the relationship between economic development and female labor force participation in the Middle East and North Africa (MENA). Using a panel data set of 20 countries in the region for the period of 1990-2012, I develop an econometric model that tests the U-shape hypothesis. This study builds upon previous literature examining the U-shape hypothesis in time series studies for developing countries, and cross-country studies. The results of this paper suggest that there is a U-shaped relationship between economic growth and female labor force participation rates. The MENA region’s low female labor force participation rates can be explained …

The Gettysburg Economic Review, Volume 8, Spring 2015

Gettysburg Economic Review

No abstract provided.

Effects Of Husband’S Education On Wife’S Earnings: The Recent Evidence, Humenghe Zhao

Gettysburg Economic Review

This paper aims to examine the relationship between husband’s education and his wife’s earnings. The study builds upon previous literature revolving around the relationship between a woman’s human capital and her husband’s earnings. Using pooled cross-sectional data from the Current Population Survey (CPS), I adjust the OLS wage model to estimate whether a man’s human capital has positive effects on his wife’s earnings. Two major hypotheses concerning the correlation between spousal education and earnings are cross-productivity effect between couples and assortative mating. Using the original regression model, I also estimate a sub-sample designed to restrict the effects of positive assortative …

Do Living Wages Alter The Effect Of The Minimum Wage On Income Inequality?, Benjamin S. Litwin

Gettysburg Economic Review

Anker (2006) proposed a new methodology for calculating the living wage in countries around the world. By looking at OECD nations between 2000-2010, we look to see if countries with a national minimum wage higher than this living wage value see a notable difference in the effect of the minimum wage on income inequality. Our results show that countries with the minimum wage higher than the living wage value do see lower inequality, although there is a key value of the minimum wage, at which countries start to see disemployment effects that increase inequality.

The Evolution Of Black-White Wage Inequality Across Occupational Sectors In The Us Since The 1990s, Tianxiao Ye

CMC Senior Theses

This paper updates the current knowledge about Black-White wage inequality in the US male labor market by using the NLSY97 sample. Compared with the results obtained from the NLSY79 cohort, I find that the unconditional racial wage inequality is smaller today, but after controlling for premarket academic skills, the conditional racial wage gap remains roughly the same as it was twenty years ago. After dividing the labor market by occupational categories, I find that in the white collar sector, the racial wage gap has largely disappeared even without controlling for academic skills. In the blue collar sector, academic skills can …

Sapat Na Ba Ang Pagsesenyas Upang Tugunan Ang Di-Pagtutugma Sa Bilihan Ng Paggawa, Tereso S. Tullao Jr

Angelo King Institute for Economic and Business Studies (AKI)

Sa harap ng maraming teorya at pananaw sa pagpapaliwanag tungkol sa pagkakaroon ng di-pagtutugma ng kasanayan, sa isang banda, at sa pangangailangan ng mga kompanya, sa kabilang banda, sa bilihan ng paggawa, ang di-timbang na impormasyon ang nangingibabaw na paliwanag. Subalit sa lawak ng impormasyong kinakailangan, at sa magastos na paglikom ng impormasyon, ang mekanismo ng pagsesenyas sa bilihan ng paggawa na isinasagawa ng pamahalaan ay maaaring magkulang sa pagsasara ng agwat sa impormasyon. Ang kakulangang ito ay nagiging lantad kapag lumalabas na ang ganap na impormasyon ay nangyayari lamang sa aktuwal na kapaligiran ng trabaho. Sa aktuwal na trabaho, …

Determinantes De La Brecha Salarial Por Género Y Segregación Ocupacional: Áreas Metropolitanas De Colombia 2009 2012, Diego Alejandro Parga Castrillón, Hamilton Herbert Galindo Lúligo

Economía

La demanda laboral y el incremento de la población han sido temas determinantes del acceso laboral en Colombia en la última década, enmarcados en situaciones de discriminación salarial por género y segregación ocupacional, haciendo necesario el estudio de la relación que existe entre ellas. Esta investigación pretende obtener resultados del comportamiento de la brecha salarial y como dentro de sus determinantes se pondera la segregación ocupacional para las 13 áreas metropolitanas del país en los periodos del 2008 al 2012. Se basa en distintas investigaciones propuestas por los diversos teóricos que evaluaron la dimensión salarial por raza y sexo, y …

Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West

Upjohn Institute Working Papers

The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels. We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. These effects are most pronounced for younger workers and in …