IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v22y2018i3p885-903.html
   My bibliography  Save this article

Aging and inequality: The link and transmission mechanisms

Author

Listed:
  • Zhi Luo
  • Guanghua Wan
  • Chen Wang
  • Xun Zhang

Abstract

There exists a shortage of rigorous empirical analyses that focus on the aging‐to‐inequality transmission mechanisms although both developed and some developing countries have been confronted with the challenge of population aging. Using cross‐country panel data covering the period of 1975 to 2015, this paper contributes to the literature by directly modeling the relationship between aging and inequality and exploring the transmission mechanisms. Our estimation results show that (1) Aging worsens income distribution; (2) This adverse impact is attributable to its negative correlation with the share of labor income that in general is more equally distributed than capital income; (3) The labor share‐reducing effect of aging can be further attributed to the significant and negative impact of aging on both labor input or supply and wage or labor productivity; and (4) Our findings are robust to changes in model specifications, use of different indicators of aging, different inequality and labor share data sources.

Suggested Citation

  • Zhi Luo & Guanghua Wan & Chen Wang & Xun Zhang, 2018. "Aging and inequality: The link and transmission mechanisms," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 885-903, August.
    • Handle: RePEc:bla:rdevec:v:22:y:2018:i:3:p:885-903
    DOI: 10.1111/rode.12394
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12394
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12394?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chu, Yihe & Li, Yujia & Che, Ming, 2024. "Population aging and the dynamics of the skill income gap: An analysis of a multiple mediation effect," Finance Research Letters, Elsevier, vol. 62(PB).
    2. Hanewald, Katja & Jia, Ruo & Liu, Zining, 2021. "Why is inequality higher among the old? Evidence from China," China Economic Review, Elsevier, vol. 66(C).
    3. Shaik, Muhammad Raees & Goh, Soo Khoon & Wong, Koi Nyen & Law, Chee Hong, 2024. "Does population aging coexist with income inequality in the long run? Evidence from selected Asia-Pacific countries," Economic Systems, Elsevier, vol. 48(1).
    4. İşcan, Talan B. & Lim, Kyoung Mook, 2022. "Structural transformation and inequality: The case of South Korea," Economic Modelling, Elsevier, vol. 107(C).
    5. Guanghua Wan & Ting Wu & Yan Zhang, 2018. "The Decline of Income Inequality in China: Assessments and Explanations," Asian Economic Papers, MIT Press, vol. 17(3), pages 115-140, Fall.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:22:y:2018:i:3:p:885-903. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.