On Growth and Income Distribution in a Globalizing World
AbstractThe basic idea explaining the relationship between economic growth and income distribution is the “U- shaped hypothesis” postulated by Simon Kuznets. This can be shown in a dual-economy model with technical progress. Initially, inequality is low, but as labour participation in the modern sector increases, higher wages in this sector tend to increase inequality. However, if enough labour is incorporated in the modern sector, wage inequality begins to diminish. Income inequality continues to worsen between the two sectors, if a new modern economy (e.g. IT-based technical change) is introduced and potential GDP shifts to a new trajectory before the turning point is reached. In a globalised word, the substantial unskilled-labour-saving technical progress puts pressure on wages of unskilled workers (in industrialized countries). Also, globalization may be blamed for leaving many nations and millions of people out from reaping the benefits of globalization. This problem can only be overcome by appropriate reforms of the international economic system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas in its journal Revista de Economía y Estadística.
Volume (Year): XLVI (2008)
Issue (Month): 2 (July)
Contact details of provider:
Postal: Av. Valparaíso s/n - Ciudad Universitaria - (5000) - Córdoba
Phone: 54 0351 4437300 int 253
Fax: 54 351 433 4436
Web page: http://ief.eco.unc.edu.ar/
More information through EDIRC
Economic Growth; Income Distribution; Globalization;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bulow, Jeremy I & Summers, Lawrence H, 1986.
"A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment,"
Journal of Labor Economics, University of Chicago Press,
University of Chicago Press, vol. 4(3), pages 376-414, July.
- Jeremy I. Bulow & Lawrence H. Summers, 1985. "A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment," NBER Working Papers 1666, National Bureau of Economic Research, Inc.
- Kylymnyuk Dmytro & Maliar Lilia & Maliar Serguei, 2007.
"Rich, Poor and Growth-Miracle Nations: Multiple Equilibria Revisited,"
The B.E. Journal of Macroeconomics, De Gruyter,
De Gruyter, vol. 7(1), pages 1-44, August.
- Lilia Maliar & Dmytro Kylymnyuk & Serguei Maliar, 2004. "Rich, Poor And Growth-Miracle Nations: Multiple Equilibria Revisited," Working Papers. Serie AD, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie) 2004-39, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Blanchard, Olivier & Wolfers, Justin, 2000.
"The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence,"
Economic Journal, Royal Economic Society,
Royal Economic Society, vol. 110(462), pages C1-33, March.
- Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
- Philippe Aghion & Peter Howitt, 1997. "Endogenous Growth Theory," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262011662, December.
- Nicola Brandt & Jean-Marc Burniaux & Romain Duval, 2005. "Assessing the OECD Jobs Strategy: Past Developments and Reforms," OECD Economics Department Working Papers 429, OECD Publishing.
- Acemoglu, Daron, 1997.
"Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
1707, C.E.P.R. Discussion Papers.
- Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change And Wage Inequality," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(4), pages 1055-1089, November.
- Acemoglu, D., 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-14, Massachusetts Institute of Technology (MIT), Department of Economics.
- Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 60(1), pages 126-42, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcelo Coser).
If references are entirely missing, you can add them using this form.