IDEAS home Printed from https://ideas.repec.org/p/dia/wpaper/dt200112.html
   My bibliography  Save this paper

Macro-economic adjustment socio-demographic change, and the evolution of income distribution in Côte d'Ivoire. A decomposition by microsimulation

Author

Listed:
  • Michael Grimm

    (University of Göttingen, Department of Economics, DIW and DIAL)

Abstract

This paper proposes a microeconomic decomposition of the evolution of income inequality in Cˆote d’Ivoire in the 1990s, allowing the in-depth analysis of simultaneous contributions of four types of phenomena to the evolution of the distribution of income: a change in the remuneration rates of observed and unobserved earnings determinants, a change in occupational preferences, and a change in the socio-demographic population structure. I show, for instance, that the increase in income inequality in Abidjan was the result of changes in the socio-demographic population structure and of changes in unobserved earnings determinants, even though higher activity, inflows in wage labour, a drop in returns to schooling, and the Ivorian/Non-Ivorian wage differential worked toward a more equal distribution. Concerning the link between growth and inequality, it is interesting to note that both negative income growth in Abidjan as well as positive income growth in rural Cˆote d’Ivoire, were connected with rising inequality. _________________________________ Cet article propose une d´ecomposition micro-économique de l’évolution de l’inégalité en Côte d’Ivoire dans les années 1990, en vue d’identifier les contributions simultanées de quatre types de phénomnes à la distribution du revenu : un changement des taux de rémunération des déterminants observés et nonobserv és du revenu, un changement du comportement de l’offre de travail et un changement de la structure socio-démographique de la population. Je montre, par exemple, que l’augmentation de l’inégalité du revenu Abidjan a été le résultat de changements dans la structure socio-démographique de la population et de variations des taux de rémunération des déterminants non-observés du revenu, et ce en dépit de taux d’activité et d’entrées dans le salariat plus forts, d’une baisse des rendements de l’éducation et du différentiel de salaire entre Ivoiriens et Non-Ivoiriens, qui ont joué à l’inverse en faveur de l’égalité des revenus. Concernant le lien entre croissance et inégalité, il est intéressant à noter que la croissance négative du revenu `a Abidjan comme la croissance positive dans le milieu rural ont été, tous les deux, accompagnées d’une hausse de l’inégalité.

Suggested Citation

  • Michael Grimm, 2001. "Macro-economic adjustment socio-demographic change, and the evolution of income distribution in Côte d'Ivoire. A decomposition by microsimulation," Working Papers DT/2001/12, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt200112
    as

    Download full text from publisher

    File URL: https://dial.ird.fr/wp-content/uploads/2021/12/2001-12.pdf
    File Function: First version, 2001
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457, Elsevier.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    5. Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Simulated residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 201-252.
    6. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    7. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
    8. Steiner, Viktor & Wagner, Kersten, 1996. "Has earnings inequality in Germany changed in the 1980's?," ZEW Discussion Papers 96-32, ZEW - Leibniz Centre for European Economic Research.
    9. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    10. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, August.
    11. François Bourguignon & Martin Fournier & Marc Gurgand, 1999. "Fast Development with a Stable Income Distribution : Taiwan, 1979-1994," Working Papers 99-21, Center for Research in Economics and Statistics.
    12. World Bank, 2000. "World Development Indicators 2000," World Bank Publications - Books, The World Bank Group, number 13828, December.
    13. Wim P. M. Vijverberg, 1993. "Educational Investments and Returns for Women and Men in Côte d'Ivoire," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 933-974.
    14. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lustig, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications - Books, The World Bank Group, number 14844, December.
    15. Grootaert, Christiaan, 1997. "The Determinants of Poverty in Cote d'Ivoire in the 1980s," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(2), pages 169-196, July.
    16. Kozel, V., 1990. "The Composition And Distribution Of Income In Cote D'Ivoire," Papers 68, World Bank - Living Standards Measurement.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonardo Gasparini & Mariana Marchionni & Walter Sosa Escudero, 2000. "Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires," IIE, Working Papers 025, IIE, Universidad Nacional de La Plata.
    2. Liyanaarachchi, Tilak S. & Naranpanawa, Athula & Bandara, Jayatilleke S., 2016. "Impact of trade liberalisation on labour market and poverty in Sri Lanka. An integrated macro-micro modelling approach," Economic Modelling, Elsevier, vol. 59(C), pages 102-115.
    3. Puhani, Patrick A., 1997. "All Quiet on the Wage Front? Gender, Public-Private Sector Issues, and Rigidities in the Polish Wage Structure," ZEW Discussion Papers 97-03, ZEW - Leibniz Centre for European Economic Research.
    4. Prathi Seneviratne, 2017. "Explaining Changes in Sri Lanka’s Wage Distribution, 1992-2014: A Quantile Regression Analysis," Working Papers 2017-01, Carleton College, Department of Economics.
    5. François Bourguignon & Francisco Ferreira & Phillippe Leite, 2008. "Beyond Oaxaca–Blinder: Accounting for differences in household income distributions," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(2), pages 117-148, June.
    6. Steiner, Viktor & Wagner, Kersten, 1996. "Has earnings inequality in Germany changed in the 1980's?," ZEW Discussion Papers 96-32, ZEW - Leibniz Centre for European Economic Research.
    7. Pedro Telhado Pereira & Pedro Silva Martins, 2000. "Does education reduce wage inequality? Quantile regressions evidence from fifteen European countries," Nova SBE Working Paper Series wp379, Universidade Nova de Lisboa, Nova School of Business and Economics.
    8. Aleksandra Anić & Gorana Krstić, 2019. "What Lies Behind The Gender Wage Gap In Serbia?," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(223), pages 137-170, October –.
    9. Ceriani,Lidia & Inchauste Comboni,Maria Gabriela & Olivieri,Sergio Daniel, 2015. "Understanding poverty reduction in Sri Lanka : evidence from 2002 to 2012/13," Policy Research Working Paper Series 7446, The World Bank.
    10. T. Paul Schultz, 1999. "Health and Schooling Investments in Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 67-88, Summer.
    11. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    12. Filipe Almeida-Santos & Karen Mumford, 2006. "Employee Training, Wage Dispersion and Equality in Britain," Discussion Papers 06/14, Department of Economics, University of York.
    13. Gurleen Popli & Okan Yılmaz, 2017. "Educational Attainment and Wage Inequality in Turkey," LABOUR, CEIS, vol. 31(1), pages 73-104, March.
    14. Robert S. Chase, 1997. "Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia," Working Papers 770, Economic Growth Center, Yale University.
    15. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    16. Nicolai Kristensen & Dorte Verner, 2008. "Labor Market Distortions in Côte d'Ivoire: Analyses of Employer‐Employee Data from the Manufacturing Sector," African Development Review, African Development Bank, vol. 20(3), pages 343-377.
    17. Ebo Botchway & Kofi Fred Asiedu, 2020. "Ownership type and earnings gap decomposition: Evidence from the Ghanaian labor market," African Development Review, African Development Bank, vol. 32(4), pages 619-631, December.
    18. Gustavo Yamada, 2007. "Retornos a la educación superior en el mercado laboral: ¿vale la pena el esfuerzo?," Diagnóstico y propuesta, Consorcio de Investigación Económica y Social.
    19. Ken Yamada & Daiji Kawaguchi, 2012. "Changing Unchanged Inequality: Higher Education, Youth Population, and the Japan's Seniority Wages," Global COE Hi-Stat Discussion Paper Series gd12-243, Institute of Economic Research, Hitotsubashi University.
    20. Heinze, Anja & Beninger, Denis & Beblo, Miriam & Laisney, François, 2003. "Measuring Selectivity-Corrected Gender Wage Gaps in the EU," ZEW Discussion Papers 03-74, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Decomposition; earnings differentials; income distribution; microsimulation; occupational choices; poverty.;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    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:dia:wpaper:dt200112. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Loic Le Pezennec (email available below). General contact details of provider: https://edirc.repec.org/data/diallfr.html .

    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.