Arbeitspapier
Premature deindustrialization and income inequality in middle-income countries
This paper examines the income inequality implications of a 'premature deindustrialization' trend in middle-income countries. To identify the premature deindustrialization phase, we arrive at five conditions based on the trends in employment and value-added share of manufacture. Among these five conditions, the first and second examine the deindustrialization pattern in economies. The last three classify the identified deindustrialization phase as premature or not. We apply panel fixed-effects and bootstrap-corrected dynamic fixedeffects models to empirically examine the relationship between premature deindustrialization and income inequality. Our findings suggest that income inequality rises with premature deindustrialization if the displaced workers are absorbed into low-productivity and informal market services (especially with employment increase in non-business market services such as trade, transport, hotels, and accommodation activities). In contrast, if high-productivity nonmarket services are the dominant employment provider, this helps to reduce income inequality even in the presence of premature deindustrialization.
- Sprache
-
Englisch
- ISBN
-
978-92-9256-942-6
- Erschienen in
-
Series: WIDER Working Paper ; No. 2021/8
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Economic Development: General
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
income inequality
middle-income countries
manufacturing employment
service sector employment
structural transformation
Babu, Suresh M
- DOI
-
doi:10.35188/UNU-WIDER/2021/942-6
- Handle
- Letzte Aktualisierung
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20.09.2024, 08:22 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ravindran, Rekha
- Babu, Suresh M
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Entstanden
- 2021
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