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Inequality in Dual Economy Models


  • Fields, Gary S


This paper seeks to make more precise the notion of inequality by asking how inequality ought to behave under certain kinds of income changes. These view are derived axiomatically from the Lorenz properties and from additional considerations of 'elitism of the rich' and 'isolation of the poor.' Although several alternative patterns are generated, six commonly used inequality measures accord with one particular inequality pattern. Inequality measures can be formulated to represent the other inequality patterns; a class of such measures is displayed. Copyright 1993 by Royal Economic Society.

Suggested Citation

  • Fields, Gary S, 1993. "Inequality in Dual Economy Models," Economic Journal, Royal Economic Society, vol. 103(420), pages 1228-1235, September.
  • Handle: RePEc:ecj:econjl:v:103:y:1993:i:420:p:1228-35

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    References listed on IDEAS

    1. Artis, Michael & Ehrmann, Michael, 2006. "The exchange rate - A shock-absorber or source of shocks? A study of four open economies," Journal of International Money and Finance, Elsevier, vol. 25(6), pages 874-893, October.
    2. David D. VanHoose & Christopher J. Waller, 1989. "Discretion, wage indexation, and inflation," Research Working Paper 89-03, Federal Reserve Bank of Kansas City.
    3. Maurice Obstfeld, 2001. "International Macroeconomics: Beyond the Mundell-Fleming Model," NBER Working Papers 8369, National Bureau of Economic Research, Inc.
    4. James Cover & David Hoose, 2002. "Asymmetric wage indexation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(1), pages 34-47, March.
    5. Fabrizio Coricelli & Alex Cukierman & Alberto Dalmazzo, 2006. "Monetary Institutions, Monopolistic Competition, Unionized Labor Markets and Economic Performance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 39-63, March.
    6. Sibert, Anne & Sutherland, Alan, 2000. "Monetary union and labor market reform," Journal of International Economics, Elsevier, vol. 51(2), pages 421-435, August.
    7. Gray, Jo Anna, 1976. "Wage indexation: A macroeconomic approach," Journal of Monetary Economics, Elsevier, vol. 2(2), pages 221-235, April.
    8. Bentolila, Samuel & Saint-Paul, Gilles, 2000. "Will EMU Increase Eurosclerosis?," CEPR Discussion Papers 2423, C.E.P.R. Discussion Papers.
    9. Bryson, Jay H & Chen, Chih-huan & VanHoose, David D, 1998. " Implications of Economic Interdependence for Endogenous Wage Indexation Decisions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 693-710, December.
    10. Christopher J. Waller & David D. VanHoose, 1992. "Discretionary Monetary Policy and Socially Efficient Wage Indexation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1451-1460.
    11. Alun H. Thomas, 1997. "Is the Exchange Rate a Shock Absorber? the Case of Sweden," IMF Working Papers 97/176, International Monetary Fund.
    12. Gray, Jo Anna, 1978. "On Indexation and Contract Length," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 1-18, February.
    13. Holden, Steinar, 1997. "Wage Bargaining, Holdout, and Inflation," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 235-255, April.
    14. Gottfries, Nils, 1992. "Insiders, Outsiders, and Nominal Wage Contracts," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 252-270, April.
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    Cited by:

    1. Lewis S. Davis, 2004. "Explaining the Evidence on Inequality and Growth: Informality and Redistribution," DEGIT Conference Papers c009_032, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Theo S Eicher & Cecilia Garcia Penalosa, "undated". "Inequality and Growth," Working Papers 0083, University of Washington, Department of Economics.
    3. Eicher, Theo S. & Garcia-Penalosa, Cecilia, 2001. "Inequality and growth: the dual role of human capital in development," Journal of Development Economics, Elsevier, vol. 66(1), pages 173-197, October.
    4. Fields, Gary S., 2007. "How much should we care about changing income inequality in the course of economic growth?," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 577-585.
    5. Vicente-Perdiz, Juan & Rubio Sanz, Maria Teresa & Decimavilla Herrero, Esther, 2010. "World’ Growth and Inequalities/Crecimiento mundial y desigualdades," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 485(14á).-4, Agosto.
    6. Juan Vicente-Perdiz & Luis M. Borge, 2000. "Desarrollo y desigualdad con progreso técnico," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 709-726, September.
    7. Bosmans, Kristof, 2007. "Income inequality, quasi-concavity, and gradual population shifts," Mathematical Social Sciences, Elsevier, vol. 53(1), pages 29-45, January.
    8. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.

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