Title
Catching-up, structural transformation, and inequality : industry-level evidence from Asia Catching-up, structural transformation, and inequality : industry-level evidence from Asia
Author
Faculty/Department
Institute of Development Policy and Management
Publication type
article
Publication
Oxford ,
Subject
Economics
Source (journal)
Industrial and corporate change. - Oxford
Volume/pages
(2016) , p. 1-28
ISSN
0960-6491
Carrier
E-only publicatie
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
This article empirically investigates the effect of structural transformation on wage inequality in Asia, using industry-level data for three skill groups of workers. While structural transformation, associated with technological progress, productivity catching-up, and capital deepening, has contributed to Asias sustained growth, its effect on income inequality remains uncertain. Our results show that the process of economic transformation has exacerbated inequality in the region by increasing the relative share of high-skilled workers in total compensation. This is mainly due to a shift toward more productiveand more intensive in the use of skilled laboractivities both within and between industries. However, we also find that policy responses, especially investments in education, mitigate the increase in inequality.
Handle