Search

• There is evidence on the endogeneity of labor productivity to the wage and the persistence of wage inequality across similar workers and firms. • We build an evolutionary micro-dynamic model having these two features of the labor market as interconnected. • We explore the implications of such micro-dynamics for the macro-dynamics of the distribution of income, capacity utilization and output growth. • Firms periodically revise (and possibly switch) their choice of remuneration with a higher or lower wage. • The productivity differential across workers is endogenous to the distribution of wage strategies across firms. • The long run features wage inequality as a persistent outcome. • Plausibly low levels of wage inequality cause the micro- and macro-dynamic variables to experience self-sustaining cyclical fluctuations. There is extensive evidence on both the endogeneity of labor productivity to the wage remuneration and the persistence of wage inequality across observationally similar workers and firms. The paper builds an evolutionary micro-dynamic model having these two features of the labor market as interconnected, and explores the ensuing implications for the macro-dynamics of the distribution of income, capacity utilization and output growth. Firms periodically revise (and possibly switch) their choice of remunerating workers with a higher or lower wage, and the resulting labor productivity differential across workers is endogenous to the distribution of wage remuneration strategies across firms. The long run features wage inequality as a persistent outcome. Plausibly low levels of wage inequality cause the distribution of wage remuneration strategies across firms, and therefore the functional distribution of income, capacity utilization and output growth, all to experience self-sustaining cyclical fluctuations. Interestingly, the level of wage inequality is a bifurcation dimension. [ABSTRACT FROM AUTHOR]

This research analyzes the economic effects of Oportunidades on all sectors and their impact on poverty and inequality in Mexico, through linear general equilibrium models. Important results have mainly affected the sectors due to the elimination of transfers from the program for the tertiary sector. This affects the total output of the economy, the first five deciles of households, and recreation, rental housing and other services. In addition, both moderate and extreme poverty would increase by less than one per cent while inequality continue to submit the same initial proportion. [ABSTRACT FROM AUTHOR]

Although the Turkish economy has adopted an export oriented approach as a goal, export revenues have not reached at the expected level yet. Today, it is a well known fact that in order to increase export revenues, one country should produce high value added products. To realize this, a country has to invest in technology and improve vocational school education. In this study, socio-economic situation of a vocational school in Turkey is investigated. The results of the study show that the vocational school students are coming from low-income and less educated families. This situation is affecting badly their personal development from secondary education until higher education years. The students usually graduate from the vocational school and start their careers, without having the adequate academic skills and knowledge of a foreign language. [ABSTRACT FROM AUTHOR]

Although the Turkish economy has adopted an export oriented approach as a goal, export revenues have not reached at the expected level yet. Today, it is a well known fact that in order to increase export revenues, one country should produce high value added products. To realize this, a country has to invest in technology and improve vocational school education. In this study, socio- economic situation of a vocational school in Turkey is investigated. The results of the study show that the vocational school students are coming from low- income and less educated families. This situation is affecting badly their personal development from secondary education until higher education years. The students usually graduate from the vocational school and start their careers, without having the adequate academic skills and knowledge of a foreign language. [ABSTRACT FROM AUTHOR]

Although the Turkish economy has adopted an export oriented approach as a goal, export revenues have not reached at the expected level yet. Today, it is a well known fact that in order to increase export revenues, one country should produce high value added products. To realize this, a country has to invest in technology and improve vocational school education. In this study, socio-economic situation of a vocational school in Turkey is investigated. The results of the study show that the vocational school students are coming from low-income and less educated families. This situation is affecting badly their personal development from secondary education until higher education years. The students usually graduate from the vocational school and start their careers, without having the adequate academic skills and knowledge of a foreign language. [ABSTRACT FROM AUTHOR]

Collectivist values, based on the ideas of egalitarian social compromise have been basic to the construction of the Welfare State, but today tend to break. Immigration and population heterogeneity thus hinder the identification of citizens with collective values. By contrast, emerging new values based on individual merit, which tends to generate a polarization of attitudes. For those profiles that have been the traditional working class, the social closure is a defence mechanism against competition for redistribution, which is reflected in negative views toward immigration. For those who make up the middle class, high level of education, high income and upper middle position, opinion on immigration and demand for solidarity is not a preferred option because they rely on the success of their individual trajectories. [ABSTRACT FROM AUTHOR]

Collectivist values, based on the ideas of egalitarian social compromise have been basic to the construction of the Welfare State, but today tend to break. Immigration and population heterogeneity thus hinder the identification of citizens with collective values. By contrast, emerging new values based on individual merit, which tends to generate a polarization of attitudes. For those profiles that have been the traditional working class, the social closure is a defence mechanism against competition for redistribution, which is reflected in negative views toward immigration. For those who make up the middle class, high level of education, high income and upper middle position, opinion on immigration and demand for solidarity is not a preferred option because they rely on the success of their individual trajectories. [ABSTRACT FROM AUTHOR]

Abstract: We examine the empirical relationship between the institutions of economic freedom and labor shares in a panel of up to 93 countries covering 1970 through 2009. We find that a standard deviation increase in the Fraser Institute's Economic Freedom of the World (EFW) score is associated with about a 1/3 standard deviation increase in a country's labor share. Starting from the sample mean labor share in our panel, this amounts to about 4.26percentage points. This relationship is robust to considering OECD and non-OECD samples separately. It is also (both qualitatively and quantitatively) robust to controlling for differences in human capital levels, labor productivity, trade union density, and international economic flows. Breaking the EFW into its individual component areas, the regulation of credit, business and labor appears to be the most important source of the positive EFW–labor share relationship. [Copyright &y& Elsevier]

This paper offers a theoretical discussion of the concept of income in classic economic literature and an estimate of hydrocarbon income in Argentina in the period following the deregulation of the oil sector and the sale of the State company YP S.E. The following are among the main considerations: the increase in joint income after change in national exchange rate policy in 2002 and the rise in energy prices, producer participation in income acquisition for the period 1993-2003, the rise in the income acquired by the National State and consumers by retaining oil exports and the lack of sustainable energy objectives through secondary income distribution on the part of the State. [ABSTRACT FROM AUTHOR]

This article examines the relationship between economic growth and income inequality in Brazil, in order to verify the applicability of Simon Kuznets' (1955) "inverted U" hypothesis, which establishes that this relationship follows a pattern where inequality grows in the early stages of development to an inflection point, after which it will fall over the occurrence of economic growth. By applying a first order auto-regressive (AR1) econometric model in time- series, it was possible to empirically prove the theory proposed by Kuznets, i.e. the relationship between income inequality and economic growth follows the format of "inverted U" to Brazil in the period 1976-2007. [ABSTRACT FROM AUTHOR]

Two decades ago the Vietnamese Communist Party embarked on a transformation from central planning towards a "socialist market economy under state guidance." It looked to East Asian development models, particularly the role of state enterprises (SEs), combined with the creation of a "civilised and equitable" society. The article argues that, in the case of SEs, the state's inability, especially under donor pressure, to provide crucial investment support to the SEs meant that foreign investors and the domestic non-state sector began to dominate the economic landscape. While state-led development remains feasible, it requires a clear and more authoritative industry policy; otherwise, the balance of interventionism could eventually tip towards cronyism. Further, the vagueness of the term "civilised and equitable" society leaves open both conformity with the post-Washington consensus and the possibility to achieve more aggressive redistributive measures, including redistribution of power. In practice, inclusion in and exclusion from successful public-private networks has been crucial for the capacity of individuals to participate in the rising prosperity of the market economy and has driven a process of rising regional inequality and the emergence of a new social class structure. [ABSTRACT FROM AUTHOR]

The present work seeks to demonstrate that it is possible to obtain rates that incorporate the distribution of income and that simultaneously they area efficient. R is a work that is sustained in the theoretical foundations of the microeconomics and of the economy of welfare and of the restrictions that it presents to fix prices based on marginal costs. The model that is applied suggests that the price that a company of public services should establish, either private or public, is a price that takes into account, to a certain extent, effects on the distribution of Income, as well as the effects in the assignment of resources, introducing certain explicit judgements value. [ABSTRACT FROM AUTHOR]

The median voter theorem suggests that a majority vote over a linear tax-cum-transfer scheme results in egalitarianism if the median of the income distribution is poorer than the average. However, although most real-world income distributions are markedly skewed to the right, radical redistribution is rather an exception than the norm. In this paper we review the theoretical arguments that explain limited redistribution as an outcome of the political process. The contributions are classified into two categories, according to whether it is the properties of the political process that prevent the poor from politically implementing their will, or whether it is in the self-interest of the poor to refrain from radical redistribution. [Copyright &y& Elsevier]

A computable general equilibrium (CGE) model of Dutch disease economics in Taiwan's economy is established in order to examine the impacts of the imbalanced growth in output, endogenous learning effects from imports and exports and the import tariff reduction. Twenty-nine industry sectors and five quintiles of households are taken to measure the changes in industry structure and functional distribution of income. An imbalanced growth, either from output or exports, contributes to the reduction in the share of manufacturing industry, but the deterioration in the functional distribution of income only happens to an imbalanced growth in intersectoral output. A widespread trade liberalization policy helps to mitigate the Dutch disease phenomenon in the sense that de-industrialization and deterioration of the distribution of income by an imbalanced growth in manufacturing industry are not so severe. [ABSTRACT FROM AUTHOR]

Ideas on how to make the fruits of capitalism more braodly enjoyed are not new. A rich body of thought exists advocating a redefinition of socioeconomic mechanisms to this end within the context of private property. This article traces the evolution of this thinking within the United States from before the American Revolution to the present. The culmination of this intellectual tradition is the universal stock ownership plan (USOP). The means of, and prospects for, experimenting with such an initiative are discussed. [ABSTRACT FROM AUTHOR]

• Economic sophistication shows the productive knowledge of a country. • Productive knowledge is embedded in labor, which increases workers' bargaining power. • Cross-country evidence shows that economic sophistication increases labor share. • This phenomenon applies equally to both OECD and non-OECD countries. • The positive relationship between economic sophistication and labor share is conditional upon the level of human capital. We present economic sophistication, the ability to produce complex products, as a potential determinant of labor share. Economic sophistication requires specific skills and tacit knowledge embedded in labor. It increases the bargaining power of workers, resulting in a higher labor share. We are the first to present economic sophistication as a potential determinant of labor share. We employ a fixed-effect model using panel data from 98 countries observed from 1970–2015 to find that economic sophistication has a positive and statistically significant effect on labor share. This positive effect applies to both OECD and non-OECD countries. A one standard deviation increase in economic sophistication increases labor share by about 3 percent, which corresponds to about 1.6 percentage points increase relative to the mean. Further, we show that economic sophistication and human capital have a substantial interaction effect that varies across OECD and non-OECD countries. [ABSTRACT FROM AUTHOR]