scholarly journals DOES OPENNESS REDUCE WAGE INEQUALITY IN DEVELOPING COUNTRIES? PANEL DATA EVIDENCE FROM BANGLADESH

2012 ◽  
Vol 57 (02) ◽  
pp. 1250012 ◽  
Author(s):  
FARZANA MUNSHI
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Theoretical Prediction ◽  
Trade Liberalization ◽  
Dynamic Model ◽  
Wage Inequality ◽  
Manufacturing Industries ◽  
Openness To Trade

This paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Estimates from a dynamic model for five major manufacturing industries spanning the 1975–2002 period suggest that the effect of increased openness to trade is associated with a decrease in wage inequality. The result is in line with the theoretical prediction in that greater openness is expected to reduce wage inequality in developing countries.

scholarly journals Trade, Environment, Human Capital and Services Sector in Developing Countries: A Panel Data Analysis

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Ismat Nasim ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq ◽  
Furrukh Bashir
Keyword(s):  
Carbon Dioxide ◽  
Developing Countries ◽  
Human Capital ◽  
Panel Data ◽  
Trade Liberalization ◽  
Unit Root ◽  
Trade Openness ◽  
Carbon Dioxide Emission ◽  
Value Addition ◽  
Services Sector

This study aims to examine the influence of Trade Liberalization, Environmental Quality (CO2 Emission) on Services Sector Growth in some selected developing. The estimation of the study considers panel data unit root and panel data ARDL approach. The environmental quality is represented by Carbon Dioxide Emission and trade liberalization is by trade openness. The results of Panel Unit Root test summarize that Panel ARDL is the most appropriate method of estimation for having Panel Coefficient values due to mixed order of integration for developing countries. The empirical findings of model, in Developing Countries, Labor Force, Capital Stock, Trade Openness, Money Supply, Government Expenditure and Human Capital exert upward pressure on Services Value Addition while Carbon Dioxide Emission and Price Level is putting download pressure on Services Value Addition.

WAGE INEQUALITY, UNEMPLOYMENT, AND EXPORT-ORIENTED POLICY

2020 ◽  
Vol 65 (06) ◽  
pp. 1753-1772
Author(s):  
CHU-PING LO
Keyword(s):  
Developing Countries ◽  
Simple Model ◽  
Latin American ◽  
Wage Inequality ◽  
East Asian ◽  
Capital Intensity ◽  
Track Record ◽  
Conflicting Evidence ◽  
The 1960S ◽  
Openness To Trade

This paper presents a simple model to address why openness to trade increases the dispersion in wages, unemployment, and capital intensity. However, the dispersion is stronger for developing countries. We argue that the export-oriented policy that most developing countries have widely adopted in recent decades, amplifies the dispersion in these countries. This paper also helps explain the conflicting evidence between two groups of developing countries: East Asian and Latin American. In comparison to the latter, the former has a track record since the 1960s of a miraculous performance in narrowing wage inequality and unemployment by practicing export-oriented policies.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

scholarly journals Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes?

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 81
Author(s):  
Jarle Aarstad ◽  
Olav A. Kvitastein
Keyword(s):  
Panel Data ◽  
Granger Causality ◽  
Wage Inequality ◽  
Wage Premium ◽  
Wage Increase ◽  
Low Incomes ◽  
Causality Tests ◽  
Granger Causality Tests

Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee.

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