IDEAS home Printed from https://ideas.repec.org/p/lis/liswps/691.html
   My bibliography  Save this paper

Different Faces of Inequality across Asia: Decomposition of Income Gaps across Demographic Groups

Author

Listed:
  • Vladimir Hlasny

    ()

Abstract

Economic inequality across Asia has been growing, but dimensions of this inequality and their development are unclear. This paper evaluates income inequality using household surveys from China, India, Japan, Korea, Russia and Taiwan. These countries may be viewed as jointly representative of Asia’s population, covering countries with various income levels, inequality and demographic profiles. This study assesses income gaps between various demographic groups in regard to households’ residence, administrative region, education, employment status and gender at various income quantiles, using unconditional quantile regressions. Gaps are decomposed into parts due to differentials in household endowments and due to differentials in returns to endowments. Rural/urban income gaps are evident across all evaluated countries, particularly in China, India and Russia, but have been falling in Russia and Taiwan. Inequality between disadvantaged and advantaged regions is high in China and India, followed by Taiwan. This gap stagnated in Taiwan and further deepened in Russia.

Suggested Citation

  • Vladimir Hlasny, 2017. "Different Faces of Inequality across Asia: Decomposition of Income Gaps across Demographic Groups," LIS Working papers 691, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:691
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/liswps/691.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Vladimir Hlasny & Paolo Verme, 2013. "Top incomes and the measurement of inequality in Egypt," Working Papers 303, ECINEQ, Society for the Study of Economic Inequality.
    2. Wan, Guanghua & Zhou, Zhangyue, 2004. "Income Inequality in Rural China: Regression-based Decomposition Using Household Data," WIDER Working Paper Series 051, World Institute for Development Economic Research (UNU-WIDER).
    3. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    4. Jean-Marc Fournier & Isabell Koske, 2012. "The determinants of earnings inequality: evidence from quantile regressions," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 7-36.
    5. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, vol. 40(6), pages 1151-1163.
    6. Guanghua Wan & Ming Lu & Zhao Chen, 2007. "Globalization And Regional Income Inequality: Empirical Evidence From Within China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 35-59, March.
    7. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 231-245, September.
    8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    9. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
    10. Kang, Byung-Goo & Yun, Myeong-Su, 2008. "Changes in Korean Wage Inequality, 1980?2005," IZA Discussion Papers 3780, Institute for the Study of Labor (IZA).
    11. Katsushi S. Imai & Bilal Malaeb, 2016. "Asia's Rural-urban Disparity in the Context of Growing Inequality," Discussion Paper Series DP2016-29, Research Institute for Economics & Business Administration, Kobe University.
    12. Rubiana Chamarbagwala, 2010. "Economic liberalization and urban–rural inequality in India: a quantile regression analysis," Empirical Economics, Springer, vol. 39(2), pages 371-394, October.
    13. Pallab Kumar Ghosh & Jae Yoon Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    14. K.P. Gluschenko (glu@nsu.ru ), 2010. "Income inequality in Russian regions: comparative analysis," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
    15. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    16. Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
    17. Hung-Hao Chang, 2012. "Consumption inequality between farm and nonfarm households in Taiwan: a decomposition analysis of differences in distribution," Agricultural Economics, International Association of Agricultural Economists, vol. 43(5), pages 487-498, September.
    18. Amanda Gosling & Stephen Machin & Costas Meghir, 2000. "The Changing Distribution of Male Wages in the U.K," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 635-666.
    19. Konstantin Gluschenko, 2010. "Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia," William Davidson Institute Working Papers Series wp984, William Davidson Institute at the University of Michigan.
    20. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    21. Racha Ramadan & Vladimir Hlasny & Vito Intini, 2016. "Inequality Decomposition in the Arab Region: Application to Jordan, Egypt, Palestine and Tunisia," Working Papers 1016, Economic Research Forum, revised Jun 2016.
    22. YOKOYAMA Izumi & KODAMA Naomi & HIGUCHI Yoshio, 2016. "What Happened to Wage Inequality in Japan during the Last 25 Years? Evidence from the FFL decomposition method," Discussion papers 16081, Research Institute of Economy, Trade and Industry (RIETI).
    23. Pallab Ghosh & Jae Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    24. YOUM Yoosik & YAMAGUCHI Kazuo, 2016. "Gender Gaps in Japan and Korea: A comparative study on the rates of promotions to managing positions," Discussion papers 16011, Research Institute of Economy, Trade and Industry (RIETI).
    25. Dustin Chambers & Alan Krause, 2010. "Is the relationship between inequality and growth affected by physical and human capital accumulation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 153-172, June.
    26. Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
    27. 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.
    28. Joon-Woo Nahm, 2008. "Shrinking Middle Class and Changing Income Distribution of Korea: 1995-2005," Korean Economic Review, Korean Economic Association, vol. 24, pages 345-365.
    29. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    30. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications, The World Bank, number 11985.
    31. Azam, Mehtabul & Bhatt, Vipul, 2016. "Spatial Income Inequality in India, 1993-2011: A District Level Decomposition," IZA Discussion Papers 9892, Institute for the Study of Labor (IZA).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Economic inequality; unconditional quantile regression; Blinder-Oaxaca decomposition; Asia; Luxembourg Income Study.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:lis:liswps:691. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piotr Paradowski). General contact details of provider: http://edirc.repec.org/data/lisprlu.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.