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Population Contributions to Global Income Inequality: A Fuller Account

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  • ELOUNDOU-ENYEGUE Parfait
  • TENIKUE Michel
  • KANDIWA Vongai M.

Abstract

Population processes are expected to contribute to global income inequality but so far, studies have mostly documented the contributions of changing population size. Such studies typically decompose global inequality trends into population size vs. income effects. We expand decomposition to cover population size, age structure and worker productivity, thus giving a fuller account of demographic influences. This expansion reveals a larger influence of population factors than previously recognized. Further, age structure (not population size) wields the larger influence and its acknowledgment helps consider international differences in dependency ratios. The implications and extensions of these findings are discussed

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2013-28.

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Length: 28 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:irs:cepswp:2013-28

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Keywords: Demographic transitions; population size; age structure; decomposition; global inequality; population growth;

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  1. DECANCK, Koen & DECOSTER, André & SCHOOKAERT, Erik, . "The evolution of world inequality in well-being," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2140, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Peter Svedberg, 2004. "World Income Distribution: Which Way?," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(5), pages 1-32.
  3. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, World Bank Group, vol. 10(3), pages 565-91, September.
  4. Xavier Sala-i-Martin, 2002. "The Disturbing "Rise" of Global Income Inequality," NBER Working Papers 8904, National Bureau of Economic Research, Inc.
  5. Zhao Kai, 2011. "Social Security, Differential Fertility, and the Dynamics of the Earnings Distribution," The B.E. Journal of Macroeconomics, De Gruyter, De Gruyter, vol. 11(1), pages 1-31, August.
  6. World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, August.
  7. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and ... Convergence, Period," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 121(2), pages 351-397, May.
  8. Kenny, Charles, 2005. "Why Are We Worried About Income? Nearly Everything that Matters is Converging," World Development, Elsevier, Elsevier, vol. 33(1), pages 1-19, January.
  9. Neumayer, Eric, 2003. "Beyond income: convergence in living standards, big time," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 14(3), pages 275-296, September.
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