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Fast Development with a Stable Income Distribution : Taiwan, 1979-1994

Author

Listed:
  • François Bourguignon

    (Crest)

  • Martin Fournier

    (Crest)

  • Marc Gurgand

    (Crest)

Abstract
This paper studies the mechanisms underlying the apparent stability of the income distribution in Taiwan. An original decomposition methodology based on micro-simulation techniques is proposed. Applied to the distribution of income in Taiwan since 1979 it permits isolating the respective impact of changes in : a) earning structure ; b) labor-force participation behavior ; and c) the socio-demographic structure of the population. The stability of the distribution in Taiwan appears as the result of various structural forces which happened to offset each other. At the individual level, the small drop observed in inequality resulted from the combination of unequalizing changes in the wage structure and the effects of changes in female labor-force participation as well as changes in the educational structure of the population. The same offsetting forces, together with changes in the composition of households, resulted in a small increase in the inequality of the distribution of equivalized household income.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • 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.
    • Handle: RePEc:crs:wpaper:99-21
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    File URL: http://crest.science/RePEc/wpstorage/1999-21.pdf
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    Citations

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    Cited by:

    1. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute of Labor Economics (IZA).
    2. 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.
    3. Stephan Klasen & Thomas Otter & Carlos Villalobos Barria, 2012. "The Dynamics of Inequality Change in a Highly Dualistic Economy: Honduras, 1991-2007," WIDER Working Paper Series wp-2012-017, World Institute for Development Economic Research (UNU-WIDER).
    4. Denis Cogneau, 2005. "Equality of opportunity and other equity principles in the context of developing countries," Working Papers DT/2005/01, DIAL (Développement, Institutions et Mondialisation).
    5. François Bourguignon & Francisco de Hollanda Guimarães Ferreira, 2000. "Understanding inequality in Brazil: a conceptual overview," Textos para discussão 434, Department of Economics PUC-Rio (Brazil).
    6. Thomas Otter, 2009. "Characterization of inequality changes through microeconometric decomposition - Paraguay 1992-2005," Ibero America Institute for Econ. Research (IAI) Discussion Papers 189, Ibero-America Institute for Economic Research.
    7. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 49-56.
    8. 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).

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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