scholarly journals The Impact of Gender Wage Gap on Sectoral Economic Growth – Cross-country Approach

Equilibrium ◽  
2013 ◽  
Vol 8 (3) ◽  
pp. 103-122
Author(s):  
Joanna Wolszczak-Derlacz
Keyword(s):  
Economic Growth ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Empirical Studies ◽  
Skilled Workers ◽  
Manufacturing Sectors ◽  
Sectoral Growth ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

We propose an empirical analysis of testing the relationship between gender wage gap and economic growth. The study takes into account 12 manufacturing sectors in 18 OECD countries for the period between 1970 and 2005.We use industrial statistics (EU KLEMS, 2008) on female and male wages that distinguish between wages paid to different groups of workers classified according to skill level: high, medium and low. We estimate augmented production function where the malefemale wage differentials constitute a potential channel influencing growth (positively or negatively). Our research is motivated by the ambiguous results of previous empirical studies (e.g.: Seguiono 2000; Busse, Spielmann 2006; Seguino 2011; Schober, Winter-Ebmer 2011). Our main findings indicate that gender wage gap for high, medium and low-skilled workers is negatively correlated with sectoral growth. This results are confirmed in a number of robustness checks.

At what level of corruption does economic growth decrease?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Ali Trabelsi ◽  
Hédi Trabelsi
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Sectional ◽  
Content Type ◽  
Marginal Costs ◽  
Marginal Change ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear and by assessing the veracity of the assumption that corruption is always detrimental to economic growth. Several cross-country studies have treated this question but the findings are not universally robust. Design/methodology/approach In this paper, a panel data analysis has been used to examine 88 countries over the 1984-2011 period. A cross-sectional framework is used in which growth rate and the International Country Risk Guide (ICRG) index are observed only once for each country. Findings The findings indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth. Originality/value This paper shows that the threshold would be a corruption level between 2.5 and 3, which represents the “acceptable corruption level”. This result is conforming to one of the ten principles of economics: “Rational people think at the marginal change”. This threshold represents the point where the marginal benefits of corruption are equal to marginal costs incurred by corruption. Conversely, lack of corruption may be a mechanism that slows down growth.

Trade Unions, Economic Growth and Politics

1989 ◽  
Vol 31 (3) ◽  
pp. 372-384
Author(s):  
Ignace Ng ◽  
John McCallum
Keyword(s):  
Economic Growth ◽  
Trade Unions ◽  
Empirical Studies ◽  
Union Density ◽  
Primary Objective ◽  
The Subject ◽  
Growth Promoting ◽  
The Government ◽  
The Impact ◽  
The Relationship

Even though identifying the causes of economic growth has been the subject of numerous empirical studies, little is known about the impact of inter-country variations in unionization on differences in economic growth between countries. To fill this apparent gap in the literature, the primary objective of this paper is to examine the influence of trade unions on economic growth in seventeen oECD countries from 1960 to 1979. The results show that the nature of the relationship between trade unions and economic growth depends upon the ideology of the government in power. Under 'non-socialist' governments, increased union density reduces economic growth, whereas under `socialist' governments, a higher level of unionization increases economic growth. This, in turn, implies that governments can have an influence on whether trade unions are growth-inhibiting or growth-promoting. However, because of the limitations in the sample used, additional studies are needed before a consensus can be reached on this issue.

scholarly journals The Impact of Corruption On Economic Growth: A Nonlinear Evidence

2021 ◽  
Author(s):  
Mohamed Ali Trabelsi
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Detrimental Effect ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Country ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect ◽  
Effect On Growth

Abstract Several cross-country studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy.This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2018 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.JEL: B23, C51, D73, O47.

scholarly journals Employment and economic growth in the conditions of COVID-19 pandemics: Cross-country comparisons

2021 ◽  
Vol 21 (1) ◽  
pp. 30-37
Author(s):  
Tatiana I. Solodkaya ◽  
◽  
Maksim A. Industriev ◽  
Keyword(s):  
Economic Growth ◽  
Total Output ◽  
Industrial Enterprises ◽  
Real Gdp ◽  
The Usa ◽  
Coronavirus Infection ◽  
Cross Country ◽  
Almost All ◽  
The Impact ◽  
The Relationship

Introduction. The factor of a sharp slowdown in economic growth in almost all countries since the beginning of 2020 has been quite atypical. Whereas previously we had seen shocks mainly related to economic processes, this time the “black swan” was a public health emergency – the new coronavirus pandemic COVID-19. A feature of this crisis was the unprecedented measures of states to restrict the movement of citizens, as well as the suspension of the activities of both industrial enterprises and enterprises in the sphere of trade and services. The aim of this work is to make cross-country comparisons of the impact of increased unemployment caused by the COVID-19 pandemic on different countries’ economic growth. Theoretical analysis. The relationship between the actual output gap and potential and cyclical unemployment rates has traditionally been studied according to the well-known law of A. Okun. Okun’s Law can be viewed as a linear algebraic equation for the function of real gross domestic product (GDP). The essence of the law is that with an increase in cyclical unemployment, total output should decrease, since the number of people employed in GDP production falls. Empirical analysis. Cross-country comparisons of economic growth and characteristics of the labor market in Russia, the USA, China, Canada and Germany from 2000 to 2020, including the period of the new coronavirus infection pandemic, were carried out. Results. Based on the analysis of time series of GDP and the unemployment rate, it is shown that, depending on the depth and effectiveness of state support measures for business in terms of maintaining employment, deviations of the actual values of GDP from those calculated in accordance with Okun’s empirical law are observed. The largest and smallest deviations in real GDP changes from the predictions for the first half of 2020 have been recorded in Germany and Canada, respectively.

scholarly journals Fiscal decentralization and economic growth: A dilemma between theory and empiricism

2017 ◽  
Vol 20 (3) ◽  
pp. 77-94
Author(s):  
Azar Hasanli
Keyword(s):  
Economic Growth ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Empirical Studies ◽  
Measurement Techniques ◽  
Theoretical Background ◽  
Time Period ◽  
The Impact ◽  
The Relationship ◽  
Selection Of

Abandoning fiscal decision-making, redistributing and dispersing authorities provided by central government in favor of local and regional-level governance bodies is one of the widely discussed issues across the world based on the theory of “fiscal decentralization”. Incumbent theoretical and empiric researches regarding to achieving economic growth in the light of global economic fragilities indicate that managerial allocation of public funds among central and local authorities casts significant attention in terms of optimizing economic efficiency. In the article, it is tried to introduce brief theoretical background and measurement techniques to depict empiric relationship between fiscal decentralization and economic growth. In addition to investigating empiric facts, an effort to reveal the impact of fiscal decentralization on acquiring economic growth is made. Based on the investigations conducted in the framework of the article, it becomes obvious that empirical approaches toward the issue can be differed in several aspects: the selection of different economies, the time period chosen, the economies’ level of development and the estimation methodology. However, there are few empirical studies that analyze the relationship between fiscal decentralization and economic growth, and unfortunately the evidence on this topic is inconclusive.

scholarly journals Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women *

2015 ◽  
Vol 131 (2) ◽  
pp. 633-686 ◽  
Author(s):  
David Card ◽  
Ana Rute Cardoso ◽  
Patrick Kline
Keyword(s):  
Wage Inequality ◽  
Gender Gap ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Strongly Correlated ◽  
Skilled Workers ◽  
Cross Sectional ◽  
Income Statement ◽  
The Impact ◽  
Over Time

Abstract There is growing evidence that firm-specific pay premiums are an important source of wage inequality. These premiums will contribute to the gender wage gap if women are less likely to work at high-paying firms or if women negotiate (or are offered) worse wage bargains with their employers than men. Using longitudinal data on the hourly wages of Portuguese workers matched with income statement information for firms, we show that the wages of both men and women contain firm-specific premiums that are strongly correlated with simple measures of the potential bargaining surplus at each firm. We then show how the impact of these firm-specific pay differentials on the gender wage gap can be decomposed into a combination of sorting and bargaining effects. We find that women are less likely to work at firms that pay higher premiums to either gender, with sorting effects being most important for low- and middle-skilled workers. We also find that women receive only 90% of the firm-specific pay premiums earned by men. Importantly, we find the same gender gap in the responses of wages to changes in potential surplus over time. Taken together, the combination of sorting and bargaining effects explain about one-fifth of the cross-sectional gender wage gap in Portugal.

Growth quality and income inequality: cross-country analysis

2021 ◽  
Vol 17 (4) ◽  
pp. 454-461
Author(s):  
Bulat Khusainov ◽  
Asset Nussupov
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Time Lag ◽  
National Income ◽  
Income Levels ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

The article is devoted to the construction and implementation of an econometric model for quantitative assessment of the impact of cross-country, international, and national income inequality on the dynamics and quality of growth of four groups of countries with different levels of development. A substantial analysis of numerous Russian and foreign research that discover the dynamics and quality of growth was carried out. On this basis, we conclude that income inequality is an important characteristic of the quality of growth of both the national and global economies. To study the relationship between inequality and economic growth, the research uses two concepts proposed by the World Bank – cross-country and international inequality. The distinction of this study from all other known works is not in identifying the genesis of the phenomenon of «inequality», but in focusing on the development of concepts of inequality between countries and quantity assessment of their impact on the growth of economies with different income levels (high, above average, below average and low). This development contributes to the expansion of the research landscape that analyses the relationship between economic growth and inequality. The implementation of the constructed model of cross-country regression confirmed the assumption on the negative impact of three types of inequality on countries with different income levels. At that, the degree of their influence for four groups of countries is shown with a different time lag. The statistically significant empirical results are the convincing scientific basis for evidence-based policy while developing an adequate economic policy by national governments, especially in modern conditions

The Impact of Public Debt on Economic Growth: A Review of Contemporary Literature

2018 ◽  
Vol 45 (4) ◽  
pp. 339-357
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Positive Impact ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Long Run ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This article provides a detailed survey of existing theoretical and empirical literature on the impact of public debt on economic growth in both developing and developed economies. The aim of the article is to add to the existing debate on the relationship between public debt and economic growth in world economies. The survey finds diverse and, in some cases, inconsistent evidence on the relative impact of public debt on economic growth. Although the majority of the surveyed literature supports the negative effect of public debt on economic growth, several other studies have found a long-run positive impact of public debt on economic growth through the fiscal multiplier effect. The article also found that a few other studies support the Ricardian Equivalence Hypothesis (REH), which states that the relationship between public debt and economic growth is nonexistent. On balance, the article also found that there is a growing body of empirical evidence, which supports the presence of threshold effects in the relationship between public debt and economic growth. Overall, it concludes that theoretical models and empirical studies yield inconclusive results depending on a set of heterogeneous factors, including the level of development of the sampled countries, data coverage, methodology used, and the researchers’ choice of control variables, among other factors. This literature survey differs predominantly from other earlier studies in that it provides a comprehensive review of the linkage between government debt and economic growth, in addition to disentangling public debt into two components, domestic and foreign, and expounding on their relative effects on economic growth.

scholarly journals Corruption Prevention and Economic Growth: A Mediating Effect of Rule of Law

2018 ◽  
Vol 6 (2) ◽  
pp. 128 ◽  
Author(s):  
Qian Hongdao ◽  
Ayesha Mumtaz ◽  
Hamid Mukhtar ◽  
Hafiz Abdul Rahman Saleem ◽  
Sonia Azam
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Empirical Studies ◽  
Mediating Effect ◽  
Governance Indicators ◽  
The World ◽  
Corruption Prevention ◽  
The Impact ◽  
The Relationship ◽  
Control Of Corruption

This article is based on the mediating effect of rule of law between control of corruption and economic growth in China. Many empirical studies have been conducted on the relationship of corruption with economic growth, income, democracy, education, employment rate and the likes. Most of them are based on linear relationship and evaluate the impact of corruption and corruption prevention on different economic and social variables. But the study under consideration is focusing upon the role of rule of law in control of corruption and economic growth in China. It puts forth a question that what kind of effects rule of law put on economic growth and corruption prevention. The top seven economies of the world have been selected and data has been extracted from the Worldwide Governance indicators of the World Bank. In order to address the above question, the study was divided into two major parts. First, the author has applied regression analyses to see the relationship among the economic growth, rule of law and corruption; and also the impact of economic growth and control of corruption on rule of law. Then, mediation analysis has been conducted to see if rule of law plays a role in control of corruption and economic growth. The results show that economic growth significantly improve the level of control of corruption and rule of law plays a partial intermediary role in the process of economic development to enhance the corruption prevention. Second, the author has discussed the condition of rule of law and corruption in the era of the current leader, Xi Jinping and before 2012.

The Impact of a Sustained Gender Wage Gap on the Australian Economy

2009 ◽  
Author(s):  
Rebecca Cassells ◽  
Yogi Vidyattama ◽  
Riyana Miranti ◽  
Justine McNamara
Keyword(s):  
Gender Wage Gap ◽  
Wage Gap ◽  
Australian Economy ◽  
The Impact
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