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Fast Development with a Stable Income Distribution : Taiwan, 1979-1994

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  • François Bourguignon

    (Crest)

  • Martin Fournier

    (Crest)

  • Marc Gurgand

    (Crest)

Abstract

This paper studies the mechanisms underlying the apparent stability of the income distribution in Taiwan. An original decomposition methodology based on micro-simulation techniques is proposed. Applied to the distribution of income in Taiwan since 1979 it permits isolating the respective impact of changes in : a) earning structure ; b) labor-force participation behavior ; and c) the socio-demographic structure of the population. The stability of the distribution in Taiwan appears as the result of various structural forces which happened to offset each other. At the individual level, the small drop observed in inequality resulted from the combination of unequalizing changes in the wage structure and the effects of changes in female labor-force participation as well as changes in the educational structure of the population. The same offsetting forces, together with changes in the composition of households, resulted in a small increase in the inequality of the distribution of equivalized household income.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 99-21.

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Date of creation: 1999
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Handle: RePEc:crs:wpaper:99-21

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Cited by:
  1. Thomas Otter, 2009. "Characterization of inequality changes through microeconometric decomposition - Paraguay 1992-2005," Ibero America Institute for Econ. Research (IAI) Discussion Papers 189, Ibero-America Institute for Economic Research.
  2. Stephan Klasen & Thomas Otter & Carlos Villalobos Barría, 2012. "The dynamics of inequality change in a highly dualistic economy: Honduras, 1991-2007," Ibero America Institute for Econ. Research (IAI) Discussion Papers 215, Ibero-America Institute for Economic Research.
  3. Borodkin, Fridrich & Bragin, Vladimir & Shpack, Maria, 2006. "Stability of Incomes Distribution in Modern Russia (1994–2004)," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 3(3), pages 17-67.
  4. Fabian Bornhorst, 2009. "How Good Are Ex Ante Program Evaluation Techniques? The Case of School Enrollment in PROGRESA," IMF Working Papers 09/187, International Monetary Fund.
  5. Caesar B. Cororaton & John Cockburn, 2005. "Trade Reform and Poverty in the Philippines: a Computable General Equilibrium Microsimulation Analysis," Cahiers de recherche 0513, CIRPEE.
  6. John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA.
  7. Frank A Cowell & Carlo V. Fiorio, 2009. "Inequality Decomposition - A Reconciliation," STICERD - Distributional Analysis Research Programme Papers 100, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  8. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
  9. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, Interational Microsimulation Association, vol. 2(1), pages 49-56.
  10. Devarajan, Shantayanan & Robinson, Sherman, 2002. "The influence of computable general equilibrium models on policy," TMD discussion papers 98, International Food Policy Research Institute (IFPRI).
  11. Cecilia Llambi & Silvia Laens & Marcelo Perera & Mery Ferrando, 2011. "Assessing the Impact of the 2007 Tax Reform on Povert and Inequality in Uruguay," Working Papers PMMA 2011-14, PEP-PMMA.
  12. De Hoyos, Rafael E., 2005. "The Microeconomics of Inequality, Poverty and Market Liberalizing Reforms," Working Papers RP2005/63, World Institute for Development Economic Research (UNU-WIDER).
  13. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
  14. Denis Cogneau, 2005. "Equality of opportunity and other equity principles in the context of developing countries," Working Papers DT/2005/01, DIAL (Développement, Institutions et Mondialisation).
  15. Claudia Gutierrez, 2008. "Analysis of Poverty and Inequality in Bolivia,1999-2005: A Microsimulation Approach," Development Research Working Paper Series 01/2008, Institute for Advanced Development Studies.
  16. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA 2011-15, PEP-PMMA.
  17. Michael Grimm, 2001. "Macro-economic adjustment socio-demographic change, and the evolution of income distribution in Côte d'Ivoire. A decomposition by microsimulation," Working Papers DT/2001/12, DIAL (Développement, Institutions et Mondialisation).
  18. Rob Vos & Marco V. Sánchez & Cornelia Kaldewei, 2008. "Latin America and the Caribbean’s Challenge to Reach the MDGs: Financing Options and Trade-offs," Working Papers 68, United Nations, Department of Economics and Social Affairs.
  19. Luebker, Malte, 2012. "Income Inequality, Redistribution and Poverty: Contrasting rational choice and behavioural perspectives," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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