Fast Development with a Stable Income Distribution: Taiwan, 1979-1994
AbstractThis 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 InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2000-07.
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
INCOME DISTRIBUTION ; ECONOMIC DEVELOPMENT ; TAIWAN ; SIMULATION;
Other versions of this item:
- François Bourguignon & Martin Fournier & Marc Gurgand, 1999. "Fast Development with a Stable Income Distribution : Taiwan, 1979-1994," Working Papers 99-21, Centre de Recherche en Economie et Statistique.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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