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Income Inequality in Taiwan 1976-1995: Changing Family Composition, Aging, and Female Labor Force Participation

Author

Listed:
  • T. Paul Schultz

    (Economic Growth Center, Yale University)

Abstract

Change in income inequality in Taiwan from 1964 to 1995 is sensitive to how household incomes are adjusted for household composition. The reasonable practice of dividing household income by persons (or adults) in the household eliminates the widely noted increase in income inequality from 1980 to 1995, and calls into question whether income inequality decreased substantially from 1964 to 1975. The increasing share of the population over age 30 that is associated with the demographic transition has contributed only slightly to increasing income inequality across all ages. The entry of women into the labor force is concentrated among higher wage groups, and thus when one attributes a shadow wage to the time of all persons, regardless of how much they work in the labor force, this broader measure of "full income" inequality is more equal than market income inequality, and it has decreased over time.

Suggested Citation

  • T. Paul Schultz, 1997. "Income Inequality in Taiwan 1976-1995: Changing Family Composition, Aging, and Female Labor Force Participation," Working Papers 778, Economic Growth Center, Yale University.
    • Handle: RePEc:egc:wpaper:778
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    Citations

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    Cited by:

    1. Martin Fournier, 2001. "Inequality decomposition by factor component : a “rank-correlation” approach illustrated on the Taiwanese case," Recherches économiques de Louvain, De Boeck Université, vol. 67(4), pages 381-403.
    2. Xinxin Wang & Kevin Z. Chen & Sherman Robinson & Zuhui Huang, 2017. "Will China's demographic transition exacerbate its income inequality?–CGE modeling with top-down microsimulation," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(2), pages 227-252, April.
    3. Chun-Hung Lin & Suchandra Lahiri & Ching-Po Hsu, 2015. "Population Aging and Regional Income Inequality in Taiwan: A Spatial Dimension," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(3), pages 757-777, July.
    4. Sung-Jin Kang & Robert Rudolf, 2016. "Rising Or Falling Inequality In Korea? Population Aging And Generational Trends," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-26, December.
    5. Wang, Xinxin & Chen, Kevin Z. & Robinson, Sherman & Huang, Zuhui, 2016. "Will China’s demographic transition exacerbate its income inequality? A CGE modeling with top-down microsimulation:," IFPRI discussion papers 1560, International Food Policy Research Institute (IFPRI).
    6. Sylvie DEMURGER & Martin FOURNIER, 1999. "Human Capital and Growth: What Can we Learn from Micro-data? Evidence from Taiwan (1976-95)," Working Papers 199919, CERDI.
    7. Martin FOURNIER, 2001. "Inequality decomposition by factor component : a “rank-correlation” approach illustrated on the Taiwanese case," Discussion Papers (REL - Recherches Economiques de Louvain) 2001042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Bharati, Tushar & Chang, Simon & Li, Qing, 2021. "The Effect of Tertiary Education Expansion on Fertility: A Note on Identification," IZA Discussion Papers 14672, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Income Inequality; Taiwan; Full Income; Family Composition;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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