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

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  • Bourguignon, F.
  • Fournier, M.
  • Gurgand, M.

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 DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2000-07.

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Length: 30 pages
Date of creation: 2000
Date of revision:
Publication status: Published in Review of Income and Wealth, 2001, 47(2), pp. 139-163
Handle: RePEc:del:abcdef:2000-07

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Keywords: INCOME DISTRIBUTION ; ECONOMIC DEVELOPMENT ; TAIWAN ; SIMULATION;

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Cited by:
  1. 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.
  2. Grimm, Michael, 2001. "Macroeconomic adjustment, socio-demographic change, and the evolution of income distribution in Côte d’Ivoire. A decomposition by microsimulation," Economics Papers from University Paris Dauphine 123456789/4708, Paris Dauphine University.
  3. 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).
  4. Frank Cowell & Carlo V. Fiorio, 2009. "Inequality decomposition: a reconciliation," LSE Research Online Documents on Economics 25431, London School of Economics and Political Science, LSE Library.
  5. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
  6. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
  7. 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.
  8. Luebker, Malte, 2012. "Income Inequality, Redistribution and Poverty: Contrasting rational choice and behavioural perspectives," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. 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.

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