scholarly journals A Survey of Inclusive Growth Policy

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 65 ◽  
Author(s):  
Almas Heshmati ◽  
Jungsuk Kim ◽  
Jacob Wood
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Developing Economies ◽  
Methodological Approach ◽  
Inclusive Growth ◽  
Growth Policy ◽  
Biased Technological Change ◽  
Silver Bullet ◽  
Generous Welfare ◽  
Do So

Background: Since the latter part of the 20th Century, countries have been particularly challenged by the trade-off that exists between delivering generous welfare provisions and strong economic growth. Such dynamics have stimulated a need to better understand the causes of income inequality so as to better formulate policies that foster inclusive growth and reduce growing concerns surrounding income inequality. Method: Given its ability to succinctly summarize, analyze, and synthesize an extant body of literature from a certain genre of scholastic endeavor, this study utilizes a literature review as its proposed methodological approach. Results: From our assessment of the literature, we identified four key areas that contribute significantly to income inequality in both advanced and developing economies, these include: (i) pursuing skill-biased technological change; (ii) enhancing education systems; (iii) consolidation of globalization; and (iv) reform of the labor market and its relevant institutions. Conclusion: There is no silver bullet to achieving inclusive growth. Any policy manifesto must seek to offer a coordinated policy platform that looks to deal directly with the causes of inequality. In order to do so, consideration should be given to a range of policy areas including fiscal, education, trade liberalization, and labor market reforms.

THE DRIVERS OF LABOR INCOME INEQUALITY — A LITERATURE REVIEW

2013 ◽  
Vol 04 (01) ◽  
pp. 1350004 ◽  
Author(s):  
RAFAL KIERZENKOWSKI ◽  
ISABELL KOSKE
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Literature Review ◽  
General Trend ◽  
Labor Income ◽  
Labor Market Policies ◽  
Biased Technological Change ◽  
Key Drivers ◽  
Main Determinants

Despite a general trend of increasing labor income inequality, there have been differences in the timing, intensity and even direction of these changes across OECD countries. These stylized facts have led to numerous studies about the main determinants of labor income inequality and, as a result, a significant revision of the previous consensus about the key drivers. The most researched channels include skill-biased technological change, international trade, immigration, education as well as the role of labor market policies and institutions.

scholarly journals The Initial Labor Market Conditions in Developing Economies as a Factor in Understanding the Progression of SARS-CoV-2: The Case of Chile

2021 ◽  
Vol 13 (4) ◽  
pp. 1704
Author(s):  
Manuel Pérez Trujillo ◽  
Miguel Atienza
Keyword(s):  
Labor Market ◽  
Significant Relationship ◽  
Economic Activity ◽  
Developing Economies ◽  
Socioeconomic Conditions ◽  
Labor Market Conditions ◽  
Economic Context ◽  
The Social ◽  
Number Of Individuals ◽  
Do So

This study assesses how the initial economic context of a country functions as a factor in the progression of the SARS-CoV-2 pandemic. To do so, we analyze Chile during the first wave of the pandemic. Chile is a developing country that suffered an unprecedented social disturbance (the Social Outbreak) that deteriorated economic activity and increased unemployment just months before the pandemic begun. We empirically test the hypothesis that the previous deterioration in the labor market, as an indicator of economic deterioration at the beginning of the pandemic, impacted the infection rate. Our results show a positive and significant relationship between unemployment prior to the pandemic at a provincial level and the number of individuals infected by SARS-CoV-2. All in all, we provide evidence that the initial social and socioeconomic conditions of each territory must be considered in the design of any policy aimed at minimizing the effects of the pandemic.

scholarly journals LABOR MARKET DYNAMICS UNDER TECHNOLOGY SHOCKS: THE ROLE OF SUBSISTENCE CONSUMPTION

2021 ◽  
pp. 1-29
Author(s):  
Sangyup Choi ◽  
Myungkyu Shim
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Developing Economies ◽  
Structural Var ◽  
Market Dynamics ◽  
Technology Shocks ◽  
Structural Factors ◽  
Long Run ◽  
Labor Market Dynamics ◽  
Short Run

This paper establishes new stylized facts about labor market dynamics in developing economies, which are distinct from those in advanced economies, and then proposes a simple model to explain them. We first show that the response of hours worked and employment to a technology shock—identified by a structural VAR model with either short-run or long-run restrictions—is substantially smaller in developing economies. We then present compelling empirical evidence that several structural factors related to the relevance of subsistence consumption across countries can jointly account for the relative volatility of employment to output and that of consumption to output. We argue that a standard real business cycle (RBC) model augmented with subsistence consumption can explain the several salient features of business cycle fluctuations in developing economies, especially their distinct labor market dynamics under technology shocks.

scholarly journals Market Imperfections and Income Distribution

2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Labor Markets ◽  
Wage Rate ◽  
Consumption Patterns ◽  
Market Imperfections ◽  
Luxury Goods ◽  
Sector Model ◽  
Two Sectors

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.

Information Technology Skills and Labor Market Outcomes for Workers

2021 ◽  
Author(s):  
Hilal Atasoy ◽  
Rajiv D. Banker ◽  
Paul A. Pavlou
Keyword(s):  
Information Technology ◽  
Labor Market ◽  
Developing Economies ◽  
Labor Market Outcomes ◽  
The Elderly ◽  
It Use ◽  
Market Outcomes ◽  
Disadvantaged Groups ◽  
It Training ◽  
It Skills

Job erosion is a major concern globally, especially given the COVID-19 pandemic. Unemployment and low wages remain pressing societal challenges in the wake of increased automation, more so for traditionally disadvantaged groups in the labor market, such as women, minorities, and the elderly. However, workers who possess relevant information technology (IT) skills may have an edge in an increasingly digital economy. In this study, we examine the role of IT skills in labor market outcomes for workers, using a household IT use survey from an emerging economy that captures detailed, individual-level data on IT skills, which are also integrated with data on workers’ wages, occupations, and industries between 2007 and 2015. The results indicate that basic IT skills increase individuals’ employment probability, which is driven by both higher labor force participation and a higher probability of transitioning from unemployment to employment, after accounting for the decision to participate in the workforce. Advanced IT skills do not provide a significant incremental effect on employment probability on top of basic IT skills. However, having advanced IT skills helps workers to earn higher wages while incrementally increasing the probability that they are employed in higher-paid jobs. Interestingly, the effect of basic IT skills on employment is significantly larger for the female and older workforce that typically has a higher preference for flexible work options. These results emphasize the importance of providing necessary IT access and offering basic IT training to traditionally disadvantaged groups to close the IT skills gap and the digital divide. We offer implications for the future of work, education, and public policy for designing IT training policies for workers, students, and organizations to stimulate employment with higher wages, particularly in developing economies and for traditionally disadvantaged segments of the workforce, such as women and the elderly, particularly after the COVID-19 pandemic.

scholarly journals Skill-Biased Technological Change and Inequality in the U.S.

2020 ◽  
pp. 91-107
Author(s):  
Ana Ferreira
Keyword(s):  
Income Inequality ◽  
Technological Change ◽  
Incomplete Markets ◽  
Gini Coefficient ◽  
Income Tax ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Biased Technological Change ◽  
Household Heterogeneity ◽  
The U.S

Since the 1980s, income inequality has increased markedly and has reached the highest level ever since it started being recorded in the U.S. This paper uses an overlapping generations model with incomplete markets that allows for household heterogeneity that is calibrated to match the U.S. economy with the purpose to study how skill-biased technological change (SBTC) and changes in taxation quantitatively account for the increase in inequality from 1980 to 2010. We find that SBTC and taxation decrease account for 48% of the total increase in the income Gini coefficient. In particular, we conclude that SBTC alone accounted for 42% of the overall increase in income inequality, while changes in the progressivity of the income tax schedule alone accounted for 5.7%.

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