Search

You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Publication Year within 5 Years Remove constraint Publication Year: within 5 Years Publication Year within 3 Years Remove constraint Publication Year: within 3 Years Topic Inequality Remove constraint Topic: Inequality
Number of results to display per page

Search Results

  • Author: Brian Levy, Alan Hirsch, Vinothan Naidoo, Musa Nxele
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: South Africa's economic and social imbalances can no longer be swept under the rug. The country has three choices: muddle through, endure another surge of ethnopopulism, or pursue inclusive development. South Africa was one of the 1990s iconic cases of democratization. Yet starting in the mid-2000s, the country began to experience a disruptive collision between its strong political institutions and massive economic inequality. The collision intensified across the 2010s, resulting in economic stagnation and increasing threats to institutional integrity. Understanding why this collision occurred and worsened over time is relevant not just for other middle-income countries but also many higher-income democracies wrestling with similar tensions between a declining tolerance for high or rising inequality and institutions that seemed strong in the past but find their legitimacy increasingly being questioned. Ideally, ideas, institutions, and growth all reinforce one another in a virtuous developmental spiral. Ideas offer hope by encouraging cooperation and the pursuit of opportunities for win-win gains. Institutions assure that the bargains underpinning cooperation will be monitored and enforced. Together, ideas and institutions provide credible commitment, which fuels economic growth. However, such a benign scenario does not reckon with the ways in which persistent high inequality, accompanied by unresolved tensions between the distribution of economic and political power, can both put pressure on institutions and quickly change hope into anger. The result can be a cascading set of pressures and an accelerating downward spiral. For the first fifteen years of democracy, South Africa enjoyed the advantages of both effective institutions and a shared willingness of stakeholders believed in the power of cooperation. This enabled the country to move beyond counterproductive conflict and pursue win-win outcomes. Growth began to accelerate, which created new opportunities for expanding the middle class. Increased fiscal space made it possible to broaden access to public services and to social grants, which reduced absolute poverty. There were, however, some stark limitations in what was achieved. Gains for the poorest did little to alter their difficult economic and social realities. Less than a quarter of the total population, including essentially all white South Africans, enjoyed a standard of living that was middle class or better. There was ample reason for the majority of South Africans to feel that, notwithstanding the promises of mutual benefit, the deck remained stacked against them. This increased the vulnerability of South Africa’s political settlement.
  • Topic: Development, Inequality, Institutions
  • Political Geography: South Africa, Africa
  • Author: Lydia Assouad
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: To survive its ongoing financial crisis, Lebanon needs a new economic system that addresses massive income inequality. Paired with political and institutional reform, tax reform can help. Over the past three decades, Lebanon’s ruling class—which comprises intertwined political and business elites—has run the country into the ground. To survive its ongoing accumulation of challenges, including the financial crisis that erupted in October 2019, Lebanon requires a revamped state backed by a new economic model with social justice at its core. Tax reform is central to such an endeavor—and to ensuring that the state has the means both to deliver basic services and to tackle poverty and inequality.
  • Topic: Poverty, Inequality, Economic structure, Business , Social Justice, Tax Systems, Elites
  • Political Geography: Middle East, Lebanon
  • Author: Chunbing Xing
  • Publication Date: 06-2021
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper examines the evolution of China’s industrial and occupational structure in the last two decades and its impact on wage inequality. We find that non-routine cognitive and interpersonal tasks have increased, while routine cognitive tasks first increased and then declined. Occupation structural change is accompanying rising wage inequality. The wage premium for educated workers rose sharply in the 1990s and remained high thereafter. Occupations with high routine task intensity are associated with lower wages. While the return to education has become the largest contributor to wage inequality, routine task intensities have yet to play a significant role.
  • Topic: Education, Labor Issues, Employment, Inequality, Work Culture
  • Political Geography: China, Asia
  • Author: Annalena Oppel
  • Publication Date: 06-2021
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Community or interpersonal support as a critical source of livelihood sustenance in the Global South can exhibit unequal dynamics. An understanding of these practices is primarily tied to the conceptual space of poverty or small communities. Less is known about how social support systems might respond to structural inequalities. I address this by exploring how support practices might be shaped by inequalities in the Namibian context. I draw on primary network data to assess inequality as a social dynamic within the space of support and evaluate whether providing worse-off others corresponds to former discriminatory practices under the apartheid regime. My results suggest that inequality has normalized a sense of support as necessity for black but not white Namibians. More broadly, by recognizing differences in group practices, I evidence that exploring support practices across structural inequalities can enhance insights on the social replication of inter- and intragroup-based inequalities.
  • Topic: Economics, Race, Inequality, Social Networks
  • Political Geography: Africa, Namibia
  • Author: Nathan Babb
  • Publication Date: 05-2021
  • Content Type: Working Paper
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: This paper explores the ethnoracial segregation trends of New Orleans, Louisiana between the years 2000, 2010, and 2018. It studies the effect of Hurricane Katrina—which struck in August 2005—on population figures and racial composition within two geographic units of study in Orleans parish: neighborhoods and census tract block groups. Since Hurricane Katrina, White residents have returned in larger numbers than Black residents, and particularly so in neighborhoods that were predominantly Black before the storm. In 2019, New Orleans had 100,000 fewer people than before the storm—nearly the same as the number of Black residents who have not returned. Using a Gibbs-Martin index, which measures racial diversity, the paper finds that decreases in population at the census block group level are associated with racial “diversifying.” This trend invites a conversation on the normative interpretations of racial heterogenization, its causes, and its consequences: who bears the costs of increased “diversity” and what is the historical backdrop it operates under?
  • Topic: Race, Natural Disasters, Governance, Inequality, Domestic Policy, Disaster Management , Segregation
  • Political Geography: North America, United States of America
  • Author: Marie Hyland, Simeon Djankov, Pinelopi Koujianou Goldberg
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: reater legal equality between men and women is associated with a narrower gender gap in opportunities and outcomes, fewer female workers in positions of vulnerable employment, and greater political representation for women. While legal equality is on average associated with better outcomes for women, the experience of individual countries may differ significantly from this average trend, depending on the countries’ stage of development (as proxied by per capita GDP). Case studies from the Democratic Republic of the Congo, India, and Spain demonstrate this deviation. Especially in developing countries, legislative measures may not necessarily translate into actual empowerment, due mainly to deeply entrenched social norms, which render legal reforms ineffective. Women are more likely than men to be in vulnerable employment in low- and lower-middle-income economies but less likely than men to be in vulnerable employment in upper-middle- and high-income economies. Analysis of a 50-year panel of gendered laws in 190 countries reveals that country attributes that do not vary or change only slowly over time—such as a country’s legal origin, form of government, geographic characteristics, and dominant religion—explain a very large portion of the variation across countries. This finding suggests that the path to legal equality between men and women may be a long and arduous one. Nevertheless, the data also show that the past five decades have seen considerable progress toward legal gender equality. Gendered laws do evolve, suggesting a role for legal reforms in women’s economic empowerment.
  • Topic: Gender Issues, Law, Women, Inequality, Economy
  • Political Geography: Africa, Europe, South Asia, India, Democratic Republic of the Congo, Spain
  • Author: Zsolt Darvas
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: GDP contractions are typically associated with within-country income inequality increases. While official income inequality data for 2020 will not be available for about two years, the already available employment data for 2020 shows that the difference between highly-educated and low-educated people in terms of job losses is correlated with the economic shock from the COVID-19 pandemic, suggesting that the depth of the economic recession is related to the increase in within-country income inequality in 2020. Scenarios based on historical patterns of recessions and within-country income inequality increases suggest relatively small increases in global income inequality in 2020. Factors mitigating global inequality increases in 2020 include larger GDP per-capita declines in richer advanced countries than in poorer emerging and developing countries, and the positive GDP growth of China, which suggests that within-country inequality in the world’s most populous country might have not changed much in 2020. In contrast, it is quite likely there was a significant increase in European Union income inequality in 2020, partly reversing the decline during the previous decades.
  • Topic: Poverty, European Union, Employment, Inequality, COVID-19
  • Political Geography: Europe
  • Author: Mario Negre
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: German Development Institute (DIE)
  • Abstract: With inequality reduction now being officially and broadly recognised as a key development objective with its own Sustainable Development Goal (SDG 10), there is a need for simple, economical and quick methodologies with which to focus on this area and assess progress. This paper presents such a methodology, which allows a rough assessment of the potential impacts of development cooperation on income, consumption and wealth inequality. This is important, as a rigorous causal analysis of the contribution development cooperation makes to reducing a partner country’s inequality is complex and costly. First, the relative contribution of targeted development cooperation programmes and projects to the economies of partner countries tends to be small (though admittedly not in all cases). Second, a myriad of factors contribute to changes in inequality in any given country, and assessing the impact of all of them is a complex, imprecise, time-consuming and resource-intensive exercise.
  • Topic: Development, International Cooperation, Inequality, Sustainable Development Goals
  • Political Geography: Global Focus
  • Author: Benjamin Crost
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: This paper provides evidence that adverse economic conditions contributed to the rise of anti-democratic extremism in the United States. A state-level analysis shows that increases in the unemployment rate during the Great Recession led to a large increase in the number of anti democratic extremist groups. The effect is concentrated in states with high pre-existing racial resentment, as proxied by racist web searches, and strongest for the male unemployment rate and the white unemployment rate. If unemployment had remained at its pre-recession level, the increase in anti-democratic groups between 2007 and 2010 could have been reduced by more than 60%.
  • Topic: Economics, Democracy, Inequality, Far Right, Economic Inequality, Political Extremism
  • Political Geography: United States
  • Author: Saskia Brechenmacher, Caroline Hubbard
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Political parties around the world face a crisis in public confidence. Many citizens view them as inaccessible and unresponsive to their concerns. Parties pose specific challenges for women, who face both formal and informal barriers to participation, including opaque nomination procedures, violence, and parties with hypermasculine cultures. The formation of new parties during periods of political transition represents a potential opportunity to break these patterns. Transitions can be openings to transform the broader political, legal, and social barriers to an inclusive kind of politics. In these moments of flux, the development of new party branches and rules, as well as the renegotiation of broader institutional frameworks, can enable women and other marginalized groups to push for greater political representation within party structures. What factors influence the level of gender inclusion in processes of party development? This question is central for policymakers, advocates, and practitioners seeking to support inclusive democracy and gender equality in transitional societies and beyond. To shed light on this topic, this study investigates gender inclusion in three types of party formation that commonly unfold during political transitions: a social movement to a party (as exemplified by Ennahda in Tunisia); an armed movement to a party (as illustrated by the African National Congress [ANC] in South Africa); and a dominant party to a breakaway party (as shown by the Mouvement du Peuple pour le Progrès [MPP] in Burkina Faso).
  • Topic: Gender Issues, Women, Inequality, Political Parties
  • Political Geography: Africa, South Africa, North Africa, Tunisia, Burkina Faso
  • Author: Ricardo Hausmann, Ulrich Schetter
  • Publication Date: 07-2020
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: In this paper, we develop a heterogeneous agent general equilibrium framework to analyze optimal joint policies of a lockdown and transfer payments in times of a pandemic. In our model, the effectiveness of a lockdown in mitigating the pandemic depends on endogenous compliance. A more stringent lockdown deepens the recession which implies that poorer parts of society find it harder to subsist. This reduces their compliance with the lockdown, and may cause deprivation of the very poor, giving rise to an excruciating trade-off between saving lives from the pandemic and from deprivation. Lump-sum transfers help mitigate this trade-off. We identify and discuss key trade-offs involved and provide comparative statics for optimal policy. We show that, ceteris paribus, the optimal lockdown is stricter for more severe pandemics and in richer countries. We then consider a government borrowing constraint and show that limited fiscal space lowers the optimal lockdown and welfare, and increases the aggregate death burden during the pandemic. We finally discuss distributional consequences and the political economy of fighting a pandemic.
  • Topic: Development, Government, Political Economy, Inequality, Economic Growth, Fiscal Policy, Pandemic, COVID-19
  • Political Geography: Global Focus
  • Author: Ina Ganguli, Ricardo Hausmann, Martina Viarengo
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: We examine gender gaps in career dynamics in the legal sector using rich panel data from one of the largest global law firms in the world. The law firm studied is representative of multinational law firms and operates in 23 countries. The sample includes countries at different stages of development. We document the cross-country variation in gender gaps and how these gaps have changed over time. We show that while there is gender parity at the entry level in most countries by the end of the period examined, there are persistent raw gender gaps at the top of the organization across all countries. We observe significant heterogeneity among countries in terms of gender gaps in promotions and wages, but the gaps that exist appear to be declining over the period studied. We also observe that women are more likely to report exiting the firm for family and work-life balance reasons, while men report leaving for career advancement. Finally, we show that various measures of national institutions and culture appear to play a role in the differential labor-market outcomes of men and women.
  • Topic: Gender Issues, Labor Issues, Women, Employment, Inequality, Human Capital, Legal Sector
  • Political Geography: Global Focus
  • Author: Marie Hyland, Simeon Djankov, Pinelopi Koujianou Goldberg
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper provides the first global look at how gender discrimination by the law affects women’s economic opportunity and charts the evolution of legal inequalities over five decades. Using the World Bank’s newly constructed Women, Business and the Law database, it documents large and persistent gender inequalities, especially with regard to pay and treatment of parenthood. The paper finds positive correlations between more equal laws pertaining to women in the workforce and more equal labor market outcomes, such as higher female labor force participation and a smaller wage gap between men and women.
  • Topic: Gender Issues, Labor Issues, Women, Inequality, Economic Inequality
  • Political Geography: Global Focus
  • Author: Tobias Arbogast
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: This paper examines the ownership structure of eurozone public debt and the distribu- tional consequences thereof. Through both a comparative perspective and an explorative case study of Italy, this paper asks two research questions. Firstly, it asks who holds gov- ernment debt in Spain, France, Germany, and Italy. I focus in on Italy to provide, to the author’s knowledge, the first highly disaggregated view of the holding structure of public debt. Secondly, for Italy I study distributional effects by examining who benefits from the interest received on government debt. This is accomplished through an investigation of the various stakeholders associated with public debt. Results indicate that most of the public debt is held by private and public financial institutions but rarely directly by households. Both direct and indirect beneficiaries of the interest received on government bonds in Italy turn out to be largely wealthy households, reflecting the unequal ownership of wealth more generally. However, prominent public financial institutions are also significant beneficiaries, which likely ameliorates a possible regressive distributional effect of the public debt hold- ing structure. The paper discusses the results with an eye on inequality and contributes to further study of the political economy of public debt.
  • Topic: Debt, Inequality, Financial Institutions , Public Debt
  • Political Geography: France, Germany, Spain, Italy
  • Author: Diego Sánchez-Ancochea
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
  • Topic: Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, Ethnicity
  • Political Geography: Latin America
  • Author: Bhashkar Mazumder, Maria Rosales-Rueda, Margaret Triyana
  • Publication Date: 12-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. We find some evidence that household resources, neighborhood quality, and assortative mating may explain a portion of our results. Our findings highlight the importance of considering the long-run and multigenerational benefits when evaluating the costs and benefits of social interventions in a middle-income country.
  • Topic: Education, Health, Poverty, Inequality, Economic Growth, Economic Development
  • Political Geography: Indonesia, Asia
  • Author: Aspen Institute
  • Publication Date: 02-2020
  • Content Type: Working Paper
  • Institution: Aspen Institute
  • Abstract: This is the second annual report for the American Talent Initiative, highlighting it has achieved more than 40 percent of the progress needed to realize its goal to enroll 50,000 additional lower-income students at high-graduation rate institutions across the country. This report also centers on the impact that an equity-focused, comprehensive strategy can have on institutions’ ability to enroll and graduate more of these talented students.
  • Topic: Education, Inequality, Income Inequality, Higher Education
  • Political Geography: North America, United States of America
  • Author: Peter Petri, Meenal Banga
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: The unprecedented rise in global interdependence since World War II, especially since the 1970s, has been very productive. World gross domestic product (GDP) growth increased from around 2% per year in the 1970s to 4% per year before the global financial crisis. Globalisation helped to lift a billion people from extreme poverty and improved the lives of billions more. The United States also gained an estimated 11%–19% of its annual GDP. Yet many Americans are concerned about the fairness of these gains. We review evidence of increasing wage inequality and stubborn unemployment effects, even though, on balance, technological change has had a much greater impact on these outcomes than globalisation. Barriers against globalisation do not offer solutions to inequality – they reduce the size of the economic pie without necessarily improving its distribution. Policies should focus on redistributing gains from growth, increasing the productivity of all workers, and helping affected communities adapt socially and economically to rapid change.
  • Topic: Globalization, Financial Crisis, Inequality, Economic Growth
  • Political Geography: United States, North America
  • Author: Kimty Seng
  • Publication Date: 09-2020
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: This study analyses the effects of financial inclusion on poverty in terms of household income per capita in Cambodia, with data from the FinScope Survey carried out in 2015. The analysis describes the effects via financial literacy, accounting for endogenous selection bias resulting from unobserved confounders and for structural differences between users and non-users of financial services in terms of income functions. The findings suggest that the use of financial services is very likely to make a great contribution to reducing household budget deficits and poverty if the users, female in particular, have at least basic financial knowledge.
  • Topic: Poverty, Inequality, Finance, Financial Services
  • Political Geography: Asia, Cambodia
  • Author: Rashesh Shrestha, Samuel Nursamsu
  • Publication Date: 09-2020
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: This paper discusses the status of financial inclusion in Indonesia and examines the impact of financial inclusion – based on availability of bank branches on household outcomes – in Indonesia. Based on analysis of the World Bank’s Financial Inclusion Survey (FINDEX) data, Indonesia has made some progress on expanding financial inclusion. The share of individuals with bank accounts rose from less than 20% to just under 50% in 2017. Interestingly, while the gain between 2011 and 2014 was greater for individuals in the upper 60 percentile of income, the gains between 2014 and 2017 were more pro-poor. This progress was made possible due to concerted government efforts to expand financial inclusion. In our empirical analysis, we study how financial inclusion enables households with income gains into savings for assets and earnings. Using the Indonesian Family Life Survey data, we find that living in areas with high density of bank branches helps poor households accumulate savings. The marginal effect of financial inclusion on savings is highest amongst the households in the bottom quintile of per capita consumption distribution. Thus, access to formal financial institutions can lead to improvement in household welfare.
  • Topic: Inequality, Finance, Banks, Domestic Policy
  • Political Geography: Indonesia, Asia-Pacific, Indo-Pacific
  • Author: Takahiro Akita, Sachiko Miyata
  • Publication Date: 11-2020
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: This study measures the pro-poorness of urban and rural economic growth by region from 2004 to 2014 in Indonesia using pro-poor growth indexes, with data from the National Socio-Economic Survey (Susenas). It also conducts a probit analysis to explore the determinants of poverty. All regions (Sumatra, Java–Bali, Kalimantan, Sulawesi, and East Indonesia) experienced a substantial increase in expenditure inequality in both urban and rural areas; thus, the change in poverty incidence due to redistribution effects is positive. Apart from East Indonesia, they reduced the incidence of poverty in both areas, but their growth was not pro-poor in the strict sense. According to the pro-poor growth indexes, urban areas performed better than rural areas; in most regions, the growth of urban areas was moderately pro-poor, while that of rural areas was weakly pro-poor or anti-poor. The government needs to take urban–rural and regional differences into account when formulating poverty alleviation policies and programs since these differences would affect economic growth and changes in inequality.
  • Topic: Poverty, Inequality, Economic Growth, Urban, Rural
  • Political Geography: Indonesia, Asia-Pacific, Indo-Pacific
  • Author: Zsolt Darvas
  • Publication Date: 10-2020
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: The level and composition of public expenditures and revenues both have implications for economic development, as shown by the ‘fiscal multiplier’ and the ‘quality of public finance’ literature. Public finance decisions also influence the distribution of income. Based on a review of the literature, I argue for a fair distribution of income as reflected in low-income inequality, not particularly because of the impact of income inequality on long-term growth (which is a controversial issue), but primarily because income inequality typically implies inequality of opportunity. European Union countries have very diverse public finance structures and different levels of effectiveness and there is room for improvement in the growth and equality impacts in all countries. A general guideline would be that the most effective approach comprises progressive taxes and inheritance taxes, spending on education, health and public infrastructure, and better government effectiveness. At the height of the 2008 global crisis and the subsequent European financial and economic crises, the fiscal consolidation strategies of EU countries largely relied on cutting public investment and social spending (except pensions), which is the opposite of what is suggested in the literature. Better fiscal rules and good fiscal institutions are needed to safeguard growth- and distribution-friendly expenditures in a crisis.
  • Topic: Governance, European Union, Inequality, Income Inequality, Tax Systems, Macroeconomics, Economic Development , Public Spending
  • Political Geography: Europe
  • Author: Pery Bazoti
  • Publication Date: 02-2020
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: The educational system in Greece has always been at the center of public discourse, not only for the shortcomings of its design, but also for the quality of the education offered. In this context, during the last decades, the rise in wage inequalities had led the literature to investigate the existence of a possible causal relationship between the level of education and income inequality. The present paper by Pery Bazoti examines the relationship between tertiary education and economic inequality. Taking into consideration the fact that potential inequalities in access to education can hinder the redistributive role of education, the starting point of the study is the access to tertiary education. The design and flaws of the Greek education system prevent university candidates from equal opportunities since the entrance to tertiary education institutions relies heavily on the economic background of their families. The economic crisis highlighted these inequalities mainly through the decline of the disposable household income and exacerbated the already crippled abilities of the education system due to the extensive cuts that took place during this time. Nevertheless, the data reveals that private expenditure -typically related to students’ preparation for exams for entrance into university, despite its decrease, continues to have the larger share of the households’ education budget.
  • Topic: Education, Reform, Inequality, Public Policy
  • Political Geography: Europe, Greece
  • Author: Intissar Kherigi
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: An account of the Arab uprisings of the last decade would be incomplete without an understanding of regional inequalities. While each country’s protests were driven by a distinct combination of grievances, a common factor has been the marginalisation of “peripheries”. The Sidi Bouzid region of Tunisia from which the Arab Spring started is a region rich in agricultural resources yet poor in infrastructure and economic opportunities. Its connection rate to running water is half the national average. A similar story can be seen across the flashpoints of unrest in the Arab world, a story of widening urban-rural divides, uneven regional development and political and economic exclusion of entire regions. Can decentralisation address these grievances? Since the 1980s, decentralisation has been championed as a driver for both democratisation and development, promising to empower regions, granting them political representation and enabling them to create their own economic strategies. However, a key fear among many, from politicians and bureaucrats to ordinary citizens, is that decentralisation is a means for the central state to withdraw from its traditional functions and transfer responsibility for service provision to under-resourced and over-burdened local government. Yet, the demands for freedom, dignity and social justice voiced by the Arab uprisings require the central state to be more present in peripheries, not less. Can decentralisation help achieve greater local development in peripheral regions without allowing the central state to withdraw from its obligations to citizens? Is it even possible to envisage new forms of local development within the framework of highly centralised Arab states? How can Arab states reconfigure their relations with local communities in the context of severe political and economic crises? This article explores these questions in the Tunisian context, where a major decentralisation process is taking place in response to demands for inclusion and development. It argues that in order to produce new modes of local development in peripheries, central state institutions need to fundamentally reform the way they function.
  • Topic: Inequality, Arab Spring, Decentralization , Bureaucracy
  • Political Geography: Africa, North Africa, Tunisia, Tunis
  • Author: Ahmed Tabaqchali
  • Publication Date: 07-2020
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: Iraq’s post-2003 political order, characterized by Muhasasa Ta’ifia with political sectarian elites using employment in public services to strengthen clientelism, has become economically unsustainable. The author’s earlier paper for the Arab Reform Initiative examined the impact of the drop in oil prices on the system. This article examines how Iraq’s growing demography erodes the patronage buying power of the sectarian elites, even though spending on clientelism has mushroomed over the years.
  • Topic: Demographics, Inequality, Elites
  • Political Geography: Iraq, Middle East
  • Author: Shamindra Nath Roy, Partha Mukhopadhyay
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: India is one of the lowest globally in terms of female labour force participation (FLFP), ranking only better than Pakistan in South Asia. While the decline in FLFP in rural areas is starkly visible, the urban FLFP has been consistently low since the 1980s despite higher economic growth and increasing level of education among females. The economic cost of such low FLFP (16.8%) is huge and if, for instance, it could be raised to the level of FLFP in China (61.5%), it has the potential to raise India’s GDP up to 27%. This paper attempts to investigate the structural deficiencies behind this consistently low urban FLFP through a variety of perspectives, ranging from measuring the complexity of women’s work to the implications of caste, location and family structure. It finds factors like presence of female-friendly industries, provision of regular salaried jobs and policies that cater to women’s needs to work near home like availability of part-time work, can improve the situation, though prejudices arising from patriarchy require to be addressed to make these measures truly transformative and not palliative.
  • Topic: Education, Gender Issues, Labor Issues, Women, Inequality, Economy
  • Political Geography: South Asia, India
  • Author: Anindita Mukherjee, Shubhagato Dasgupta, Aparna Das
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: “Housing for All”, an often-stated vision for housing policies in India, has come to mean ownership houses for all residents. This singular focus has been part of programs from the early 1970s and has failed to recognize the range of housing tenures that may enable a viable, sustainable market. This paper reviews the evolution of housing policies since independence and shows that the emphasis on rental housing has not been a central part of housing programs to date. It then broadly characterizes the rental housing market in India, based on national statistics, to show how rental housing for the urban poor, is half of the rental housing market and is the least understood. Thereafter based on primary survey findings, it identifies the main issues that may inform a comprehensive rental housing program was to be developed in India.
  • Topic: Poverty, Inequality, Urban, Housing
  • Political Geography: South Asia, India
  • Author: Paolo Brunori, Guido Neidhofer
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Center for Distributive, Labor and Social Studies (CEDLAS)
  • Abstract: We show that measures of inequality of opportunity (IOP) fully consistent with Roemer (1998)’s IOP theory can be straightforwardly estimated by adopting a machine learning approach, and apply our novel method to analyse the development of IOP in Germany during the last three decades. Hereby, we take advantage of information contained in 25 waves of the Socio-Economic Panel. Our analysis shows that in Germany IOP declined immediately after reunification, increased in the first decade of the century, and slightly declined again after 2010. Over the entire period, at the top of the distribution we always find individuals that resided in West-Germany before the fall of the Berlin Wall, whose fathers had a high occupational position, and whose mothers had a high educational degree. East-German residents in 1989, with low educated parents, persistently qualify at the bottom.
  • Topic: Education, Inequality, Post Cold War, Reunification
  • Political Geography: Europe, Germany
  • Author: Guillermo Falcone, Carlo Lombardo
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Center for Distributive, Labor and Social Studies (CEDLAS)
  • Abstract: In this paper we characterize workers’ vulnerability to automation in the near future in Argentina as a function of the exposure to routinization of the tasks that they perform and the potential automation of their occupation. In order to do that we combine (i) indicators of potential automatability by occupation and (ii) worker’s information on occupation and other labor variables. We find that the ongoing process of automation is likely to significantly affect the structure of employment. In particular, unskilled and semi-skilled workers are likely to bear a disproportionate share of the adjustment costs. Automation will probably be a more dangerous threat for equality than for overall employment.
  • Topic: Science and Technology, Employment, Inequality, Job Creation, Labor Market
  • Political Geography: Argentina, South America
  • Author: Julian Martinez-Correa, Leonardo Peñaloza Pacheco, Leonardo Gasparini
  • Publication Date: 10-2020
  • Content Type: Working Paper
  • Institution: Center for Distributive, Labor and Social Studies (CEDLAS)
  • Abstract: The effect of immigration on preferences for redistribution has been recently studied in the context of developed countries receiving migrants from poorer coun- tries with very different cultural backgrounds. In this paper we explore this issue in the context of migration across similar Latin American countries. To this aim, we exploit data at the provincial level from a large attitudinal survey (LAPOP) and match it to immigration data from different sources. We follow three approaches: first, we implement an instrumental variables approach in a cross-section of cen- suses; second we estimate fixed effects models with data from a large sample of harmonized national household surveys, and third we exploit the massive inflow of Venezuelan refugees into the border country of Colombia with an instrumental vari- ables methodology. Our results suggest a significant, negative and non-monotonic relationship between the share of immigrants at the provincial level and the sup- port for redistribution policies. This anti-redistribution effect is larger among those individuals with higher income.
  • Topic: Migration, Immigration, Refugees, Inequality, Redistribution
  • Political Geography: Latin America
  • Author: Hernan Winkler
  • Publication Date: 11-2020
  • Content Type: Working Paper
  • Institution: Center for Distributive, Labor and Social Studies (CEDLAS)
  • Abstract: Evidence about the effect of exports on welfare at the local level is scarce. Using a unique dataset of international trade and poverty maps for almost 2,000 Mexican municipalities between 2004 and 2014, the study presented in this paper provides new evidence on the impact of a significant rise in exports on poverty and inequality at the local level. The analysis implements an instrumental variable approach that combines the initial structure of exports across municipalities with global trends in exports from developing to developed countries by sector. The results show that a 10 percent increase in the ratio of exports to workers reduces income inequality measured by the Gini coefficient by 0.17 points (using a 0 to 100 scale), but no significant effects on poverty reduction or average household incomes are identified. The lack of impacts on average incomes is driven by a rise in the supply of labor at the local level because municipalities with higher export growth experienced an increase in labor force participation and attracted more net migration, particularly of unskilled workers. Therefore, while total labor incomes grew in response to an increase in exports, average labor incomes per worker did not change. Declining remittances also blunted the effect of growing exports on household incomes.
  • Topic: International Trade and Finance, Migration, Poverty, Inequality, Local
  • Political Geography: North America, Mexico
  • Author: Carlos Gradín, Binbin Wu
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: We analyse income and expenditure distribution in China in a comparative perspective with India. These countries represent extreme cases in the relationship of inequality to both wellbeing indicators. Income is more highly concentrated than expenditure in India, especially at the top of the distribution. Both types of inequality are similar in China, although expenditure is more unequally distributed than income in urban areas. China has a much stronger correlation in individual ranks and levels between the two wellbeing distributions. As a result, expenditure inequality is higher in China than in India, but income inequality much lower. This results partially from differences in population composition, such as China being more urbanized and having smaller households, but mostly from differences in conditional income distributions, especially by attained education of the household head. We show that hybrid measures of wellbeing combining income and expenditure can be useful for such cross-country comparison.
  • Topic: Inequality, Income Inequality, Consumerism
  • Political Geography: China, South Asia, India, Asia
  • Author: Rachel M. Gisselquist
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Across the world, we observe different experiences in terms of inequality between migrant and ‘host-country’ populations. What factors contribute to such variation? What policies and programmes facilitate ‘better’ economic integration? This paper, and the broader collection of studies that it frames, speaks to these questions through focused comparative consideration of two migrant populations (Vietnamese and Afghan) in four Western countries (Canada, Germany, the UK, and the US). It pays particular attention to involuntary migrants who fled conflict in their home regions beginning in the 1970s. The paper builds in particular on the literature on segmented assimilation theory, exploring new linkages with work on horizontal inequality, to highlight the role of five key sets of factors in such variation: governmental policies and institutions; labour market reception; existing co-ethnic communities; human capital and socioeconomic characteristics; and social cohesion or ‘groupness’.
  • Topic: Migration, Inequality, Displacement, Economic Integration
  • Political Geography: Afghanistan, United Kingdom, Europe, South Asia, Canada, Vietnam, Germany, North America, Southeast Asia, United States of America
  • Author: Katrin Hansing, Bert Hoffman
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Few political transformations have attacked social inequalities more thoroughly than the 1959 Cuban Revolution. However, as the survey data in this paper shows, 60 years on, structural inequalities which echo the pre-revolutionary socio-ethnic hierarchies are returning. While official Cuban statistics are mute about social differences along racial lines, the authors were able to conduct a unique, nationwide survey which shows the contrary. If the revolutionary, state-run economy and radical social policies were the main social elevators for the formerly underprivileged classes in socialist Cuba, the economic crisis and depressed wages of the past decades have seriously undercut these achievements. Moreover, previously racialised migration patterns have produced highly unequal levels of access to family remittances, and the gradual opening of the private business sector in Cuba has largely disfavoured Afro-Cubans, due to their lack of access to pre-revolutionary property and remittances in the form of start-up capital. While social and racial inequalities have not yet reached the levels of other Latin American countries, behind the face of socialist continuity a profound restructuring of Cuban society is taking place.
  • Topic: Civil Society, Race, Social Stratification, Inequality
  • Political Geography: Cuba, Caribbean, North America
  • Author: Tharcisio Leone
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper explores the variation in intergenerational educational mobility across the Brazilian states based on Markov transition matrixes and univariate econometric techniques. The analysis of the national household survey (PNAD-2014) confirms a strong variation in mobility among the 27 federative units in Brazil and demonstrates a significant correlation between mobility and income inequality. In this sense, this work presents empirical evidence for the existence of the "Great Gatsby curve" within a single country: states with greater income disparities present higher levels of persistence in educational levels across generations. Finally, I investigate one specific mechanism behind this correlation – namely, whether higher income inequality might lead to a lower investment in human capital among children from socially vulnerable households. The paper delivers robust and compelling results showing that children born into families where the parents have not completed primary education have a statistically significant reduction in their chance of completing the educational system if they live in states with a higher level of income inequality.
  • Topic: Education, Children, Inequality, Mobility
  • Political Geography: Brazil, South America
  • Author: Semiray Kasoolu, Ricardo Hausmann, Tim O'Brien, Miguel Ajgel Santos
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Women in Jordan are excluded from labor market opportunities at among the highest rates in the world. Previous efforts to explain this outcome have focused on specific, isolated aspects of the problem and have not exploited available datasets to test across causal explanations. We develop a comprehensive framework to analyze the drivers of low female employment rates in Jordan and systematically test their validity, using micro-level data from Employment and Unemployment Surveys (2008-2018) and the Jordanian Labor Market Panel Survey (2010-2016). We find that the nature of low female inclusion in Jordan’s labor market varies significantly with educational attainment, and identify evidence for different factors affecting different educational groups. Among women with high school education or less, we observe extremely low participation levels and find the strongest evidence for this phenomenon tracing to traditional social norms and poor public transportation. On the higher end of the education spectrum – university graduates and above – we find that the problem is not one of participation, but rather of unemployment, which we attribute to a small and undiversified private sector that is unable to accommodate women’s needs for work and work-family balance.
  • Topic: Education, Gender Issues, Political Economy, Labor Issues, Women, Inequality
  • Political Geography: Middle East, Jordan
  • Author: Alice Evans
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Support for gender equality has risen, globally. Analyses of this trend focus on individual and/or country-level characteristics. But this overlooks sub-national variation. Citydwellers are more likely to support gender equality in education, employment, leadership, and leisure. Why is this? This paper investigates the causes of rural-urban differences through comparative, qualitative research. It centres on Cambodia, where the growth of rural garment factories enables us to test theories that female employment fosters support for gender equality: potentially closing rural-urban differences; or whether other important aspects of city-living accelerate support for gender equality. Drawing on this rural and urban fieldwork, the paper suggests why social change is faster in Cambodian cities. First, cities raise the opportunity costs of gender divisions of labour – given higher living costs and more economic opportunities for women. Second, cities increase exposure to alternatives. People living in more interconnected, heterogeneous, densely populated areas are more exposed to women demonstrating their equal competence in socially valued, masculine domains. Third, they have more avenues to collectively contest established practices. Association and exposure reinforce growing flexibility in gender divisions of labour. By investigating the causes of subnational variation, this paper advances a new theory of growing support for gender equality.
  • Topic: Economics, Gender Issues, Urbanization, Women, Inequality
  • Political Geography: Cambodia, Southeast Asia
  • Author: Gisela Robles Aguilar, Andy Sumner
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Who are the world’s poor? This paper presents a new global profile of multidimensional poverty using three specifications of multidimensional poverty. The paper draws comparisons with the global monetary poverty profile and with the new World Bank measure of combined monetary and non-monetary poverty; discusses how global poverty differs by specification, the extent of multidimensionality, and presents a set of estimates of the disaggregated characteristics of global multidimensional poverty in 2015. We find the following: (i) at an aggregate level, the overall characteristics of global multidimensional poverty are similar to those of global monetary poverty at $1.90 per day; (ii) at a disaggregated level, we find that poverty in rural areas tends to be characterized by overlapping deprivations in education and access to decent infrastructure (water, sanitation, electricity, and housing) and counterintuitively, given the proximity, in principle, to better health care and economic opportunities, it is child mortality and malnutrition that is more frequently observed within urban poverty; and (iii) the extent of the multidimensionality of poverty differs substantially by region; moreover, some deprivations frequently overlap while others do not.
  • Topic: Poverty, World Bank, Inequality, Rural
  • Political Geography: Global Focus
  • Author: Scott Morris, Gailyn Portelance
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Under the World Bank’s 2018 capital agreement, borrowing countries are expected to gradually reduce their portfolios once a base income threshold—the Graduation Discussion Income (GDI)—is reached. However, the agreement also affirms the case for ongoing lending to these countries. One justification is tied to external value beyond the borrowing country’s borders (global public goods, or GPGs). Another is tied to building capacity within the borrowing country, which can mean a focus on sub-regions where poverty remains high and capacity weak. In this paper, we examine World Bank graduation policies and lending through the lens of China, which maintains a large portfolio of World Bank projects. China currently exceeds the GDI thresholds for IBRD borrowing at the national level, while income inequality within the country leaves many noncoastal provinces below the GDI per capita threshold. Aggregate and provincial-level analysis of World Bank lending in China shows that less than half of China’s portfolio comprises activities clearly linked to GPGs, while a slight majority of projects are based in provinces with per capita income below the GDI threshold. A substantial number of World Bank projects in China focus on climate change mitigation and transportation infrastructure construction, while a smaller number relate to capacity building. Overall, we find evidence that China’s borrowing is broadly consistent with the 2018 principles of institutional capacity strengthening and GPG-related engagement, although significant areas of bank engagement do not appear to fall within the parameters of these principles.
  • Topic: Poverty, Infrastructure, World Bank, Inequality
  • Political Geography: China, Asia
  • Author: Michael Pisa, John Polcari
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: en years ago, only 6 percent of the population in low-income and lower-middle-income countries had access to the internet. Today, nearly one in every three people there does. The rapid expansion of internet access across the globe is a welcome development, but it raises new policy challenges. And while there is broad agreement in the development community on the importance of getting digital policy “right,” too little attention has been paid to how policymakers in the developing world can best engage with the companies who dominate the digital landscape. As governments reassess their relationship with these companies, an increasing number are enacting policies that raise barriers to the cross-border flow of data and put the largely global and open nature of the internet at risk. In this paper, we review how internet use has evolved in the developing world over the last decade, with a focus on initiatives by big tech companies to reach the “Next Billion Users.” We then examine how concerns about data privacy, disinformation, and market concentration have manifested in lower-income countries and how policymakers have begun to respond. We close by considering ways the development community can support policymakers seeking to maximize the benefits of an open internet while minimizing its risks.
  • Topic: Science and Technology, Governance, Inequality, Privacy, Internet, Emerging Technology
  • Political Geography: Global Focus
  • Author: Charles Kenny
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: There is a lot we don’t know about what automation will mean for jobs in the future, including its impact (if any) on gender inequality. This note reviews evidence and forecasts on that question and makes four main points: Past automation has been (broadly) positive for women’s average quality of life, economic empowerment, and equality. Forecasts of the gendered impact of automation and AI going forward based on the current distribution of employment suggest considerable uncertainty and a gender inequality of impact that is marginal compared to the potential impact overall. The bigger risk—and/or opportunity—is likely to be in the combined impact of automation, policy, and social norms in changing the type of work that is seen as male or female. Minimizing any potential aggravating impact of automation and AI on inequalities in economic power in the future can best be achieved by maximizing economic equality today.
  • Topic: Gender Issues, Labor Issues, Employment, Inequality, Feminism
  • Political Geography: Global Focus
  • Author: Kimberly Ann Elliott
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: American policymakers have failed to adequately respond to concerns about globalization’s effects and the resulting backlash has taken an ugly turn in recent years. While globalization is only one of many factors contributing to economic dislocation, sluggish wage growth and inequality in the United States, foreigners, and developing countries in particular, are frequently the target of those who are frustrated at being left behind. Yet few realize that US trade policy effectively discriminates against poorer countries. In addition, provisions in trade agreements that tilt the playing field in favor of business interests over those of American consumers and workers also often undermine development priorities in partner countries. American policymakers should rethink the substance and process of trade policy and negotiations to spread the benefits more broadly, at home and abroad.
  • Topic: Globalization, International Trade and Finance, Inequality, Domestic Policy
  • Political Geography: United States, North America
  • Author: Patrick Honohan
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Should central banks take more account of ethical issues, notably the impact of monetary policy actions on the distribution of income and wealth and on efforts to combat climate change, in the design and implementation of the wider monetary policy toolkit they have been using in the past decade? Although the scope to influence a range of objectives is more limited than is often supposed, and while it is vital to not derail monetary policy from its core purposes, central bank mandates justify paying more attention to such broad issues, especially if policy choices have a significant potential impact. Carefully managed steps in this direction could actually strengthen central bank independence while making some contribution to improving the effectiveness of public policy on these issues.
  • Topic: Climate Change, Economics, Monetary Policy, Inequality, Central Bank
  • Political Geography: North America, Global Focus, United States of America
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Center on International Cooperation
  • Abstract: Inequality and exclusion are among the most pressing political issues of our age. They are on the rise and the anger felt by citizens towards elites perceived to be out-of-touch constitutes a potent political force. Policy-makers and the public are clamoring for a set of policy options that can arrest and reverse this trend. The Pathfinders’ Grand Challenge on Inequality and Exclusion seeks to identify practical and politically viable solutions to meet the targets on equitable and inclusive societies in the Sustainable Development Goals. Our goal is for national governments, intergovernmental bodies, multilateral organizations, and civil society groups to increase commitments and adopt solutions for equality and inclusion.
  • Topic: Civil Society, Inequality, Sustainable Development Goals, Multilateralism, Elites, Exclusion
  • Political Geography: Global Focus
  • Author: Peter G. Johannessen
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: Do voters use a candidate’s class as an electoral heuristic? And if so, how? Drawing on observational and experimental evidence from Brazil’s local elections (2004–2016), I provide evidence that voters use shared class to draw inferences about a candidate’s type: candidates from different classes receive similar overall levels of support, but receive disproportionate support from voters who share their class. The mechanisms driving this finding vary by a voter’s relative class position: upper-class voters use shared class to draw inferences about a candidate’s quality, trustworthiness, and distributive commitments, but lower-class voters only use shared class to draw inferences about a candidate’s trustworthiness and distributive commitments.
  • Topic: Politics, Poverty, Democracy, Inequality, Citizenship, Identities
  • Political Geography: Brazil, South America, Latin America
  • Author: Padmashree Gehl Sampath, Walter Park
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: Global Development and Environment Institute at Tufts University
  • Abstract: Market concentration in technology intensive industries has been a subject of interest to both scholars and policy analysts. This paper provides a first empirical assessment on how the patenting system contributes to market concentration and the generation of economic rents in three key sectors – pharmaceuticals, chemicals and ICTs. Using data for US multinationals and their foreign affiliates on the one hand, and locally registered private and public companies in Brazil, India and China, we conclude that the concentration of patent ownership is found significantly to relate to market concentration in the USA. In developing countries such as Brazil, India, and China, a strengthening of patent rights has contributed to greater returns for affiliates of U.S. companies but has not stimulated their R&D intensity. The affiliates of U.S. multinationals have enjoyed greater profitability relative to their local competitors in Brazil, India, and China. The paper draws implications for the setting of intellectual property policy and offers suggestions on the role of competition policy in curbing market concentration and related effects on inequality and access.
  • Topic: Markets, Inequality, Patents
  • Political Geography: Global Focus
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Munk School of Global Affairs at the University of Toronto
  • Abstract: The Reach Project is a research initiative based in the Munk School of Global Affairs and Public Policy and supported by the Mastercard Center for Inclusive Growth. They examine the successful delivery of social services to those who are hardest to reach. This case study examines how the Ministry of Social Development in Palestine designed, implemented, and continues to refine the Palestinian National Cash Transfer Program (PNCTP) to specifically reach those who are hard to reach.
  • Topic: Civil Society, Development, Poverty, Inequality, Social Services
  • Political Geography: Middle East, Israel, Palestine
  • Author: Sasiwimon W. Paweenawat
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: Using a two-stage estimation of matched worker-industry data from 2000 to 2011, this study investigates the impact of global value chain (GVC) integration on wages and the skill premium in 32 industries in Thailand, a country with recent heavy involvement in GVCs. This study employs foreign value added in both final and intermediate goods exports as a proxy for the degree of industry integration in GVCs and applies a panel fixed effects estimation on constructed panel data to investigate its relationship with wages. The main finding indicates that a higher level of industry integration with GVCs leads to higher wages and a higher skill premium, confirming the positive effect of GVC involvement on wages and the complementary effect of high demand for skilled workers in GVC-oriented industries in Thailand. Workers in industries with positions close to the end of the value chain (downstream position) will earn a higher wage than those working in the upstream position. These results have significant policy implications. The Thai government should not only attempt to increase industry involvement in GVCs overall, but also aim to lift industries to higher positions in the GVC to gain the most benefits for Thai workers and the country overall.
  • Topic: Labor Issues, Inequality, Wage Subsidies, Global Value Chains
  • Political Geography: Asia, Thailand
  • Author: Cassey Lee
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: The economic development of Malaysia has been strongly driven and shaped by globalisation, from the pre-colonial to the post-independence period. The country has harnessed trade, foreign capital, and foreign labour to grow and has transformed its economy from one that was highly dependent on primary commodities (tin and rubber) into one driven by manufactured exports. The impact of globalisation on the Malaysian economy has changed through the various phases of its development experience. The early phases of the country’s engagement with globalisation reduced poverty and inequality. In later stages, excessive dependence on low-skilled foreign labour, although beneficial initially, may have compromised the competitiveness of the economy. Malaysia’s multi-ethnic society has also posed considerable challenges in the balancing of domestic needs and benefits with greater engagement with globalisation. The openness of the Malaysian economy has also made it vulnerable to global economic shocks.
  • Topic: Globalization, International Trade and Finance, Inequality, Economic Development
  • Political Geography: Malaysia, Asia
  • Author: Dia Anagnostou, Natalia-Rozalia Avlona
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: This policy paper provides an overview of the state of things in the European Union (EU) in the area of gender equality in science, research and higher education, and reviews the EU’s efforts over the last twenty years to develop a comprehensive policy of gender mainstreaming in this area. Even though equality between women and men is a core value that is enshrined in the European Treaties and a large body of related legislation exists, there are persistent gender disparities in academia and scientific research. This paper examines how the EU’s normative and policy guidelines are designed and have evolved over time to tackle such persisting disparities, particularly as these are manifested in the obstacles that prevent women from advancing in the high ranks of the scientific and academic profession. These disparities are noticeably evidenced in the case of Greece, where despite a permissive constitutional frame and existing legislation, the political will, initiative and resources to promote gender equality in research and academic have been thoroughly lacking. By reviewing the Greek legal framework regarding gender equality and relevant policy documents on research and higher education, this paper identifies the implementation gaps and suggests possible tools to address the gender imbalances in Greek research and university structures.
  • Topic: Gender Issues, Science and Technology, European Union, Inequality
  • Political Geography: Europe
  • Author: Yume Tamiya
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: In 2018/2019 the CGPE launched an annual Gender & Global Political Economy Undergraduate Essay Prize competition, open to all undergraduate students within the School of Global Studies. The winner of the 2018/2019 competition is Isabella Garcia for the essay “How do global supply chains exacerbate gender-based violence against women in the Global South?” Isabella graduated with a BA in International Relations and Development in July and will join the MA cohort in our Global Political Economy programme for 2019/2020. Given the very strong field of submissions, the award committee further decided to award a second-place prize to Yume Tamiya for the essay “Does the rise of the middle class disguise existing inequalities in Brazil?”. Yume graduated with a BA in International Development with International Education and Development. We are delighted to publish both of these excellent essays in the CGPE Working Paper series.
  • Topic: Development, Economics, Inequality, Economic Growth
  • Political Geography: Brazil, Latin America
  • Author: Shannon Monnat
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: Over the past two decades deaths from opioids and other drugs have grown to be a major U.S. population health problem, but the magnitude of the crisis varies across the U.S., and explanations for widespread geographic variation in the severity of the drug crisis are limited. An emerging debate is whether geographic differences in drug mortality rates are driven mostly by opioid supply factors or socioeconomic distress. To explore this topic, I examined relationships between county-level non-Hispanic white drug mortality rates for 2000-02 and 2014-16 and several socioeconomic and opioid supply measures across the urban-rural continuum and within different rural labor markets. Net of county demographic composition, average non-Hispanic white drug mortality rates are highest and increased the most in large metro counties. In 2014-16, the most rural counties had an average of 6.2 fewer deaths per 100,000 population than large metro counties. Economic distress, family distress, persistent population loss, and opioid supply factors (exposure to prescription opioids and fentanyl) are all associated with significantly higher drug mortality rates. However, the magnitude of associations varies across the urban-rural continuum and across different types of rural labor markets. In rural counties, economic distress appears to be a stronger predictor than opioid supply measures of drug mortality rates, but in urban counties, opioid supply factors are more strongly associated with drug mortality rates than is economic distress. Ultimately, the highest drug mortality rates are disproportionately concentrated in economically distressed mining and service sector dependent counties with high exposure to prescription opioids and fentanyl.
  • Topic: Economics, Health, Inequality, Macroeconomics, Drugs
  • Political Geography: United States
  • Author: Servaas Storm
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: Strong labor protections for ordinary workers are often portrayed as a ‘luxury developing countries cannot afford’. No study has been more influential in propagating this perversity trope in the context of the Indian economy than the QJE article of Besley and Burgess (2004). Their article provides econometric evidence that pro-worker regulation resulted in lower output, employment, investment and productivity in India’s registered manufacturing sector. This paper reviews existing critiques of Besley and Burgess (2004), which highlight conceptual and measurement errors and uncover econometric weaknesses. The paper takes a step beyond these: it reports a failure to replicate Besley and Burgess’ findings and demonstrate the nonrobustness of their results. My deconstruction is not only about the econometrics, however. I show that Besley and Burgess’ findings are not just inconsistent with their theoretical priors, but also internally contradictory and empirically implausible, taxing any person’s capacity for belief. The paper, written by two ‘useful economists’, exhibits a gratuitous empiricism in which priors trump evidence. On all counts, it fails the test of being useful to the purpose of ‘evidence-based’ public policy advice.mp Evidence and Progress Gets Stalled
  • Topic: Economics, Political Economy, Labor Issues, Inequality, Labor Policies
  • Political Geography: India, Asia
  • Author: Lillian Mookodi
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: This paper applies the Lerman and Yitzhaki (1985) inequality decomposition approach on food and non-food expenditures on the 2009/10 Botswana Core Welfare Indicator Survey; and the 2015/16 Multi Topic Indicator Survey datasets with an objective to see how overall inequality translates into inequality within each expenditure component. To test for a robustness of our results, we apply a simple bootstrap procedure to obtain the means, standard errors and confidence intervals for the component Gini coefficients estimates. The decomposition analysis results show that overall inequality based on the Gini coefficient of consumption expenditure within the groups has increased between the two periods from 0.498 to 0.533. These results suggest that this rise in overall expenditure inequality is due to the increased burden in the household budget of non-food spending, which tends to be more unequal than food spending. The consumption expenditure is very unequal on non-food items like recreation and hotels; health; education and transport. On one hand, lower Gini coefficients are observed for food; and clothing and footwear; these commodities are considered as necessities among others. This paper finally offers some possible policy measures to curb this consumption expenditure inequality.
  • Topic: Economics, Developing World, Inequality, Economic Inequality
  • Political Geography: Africa, Botswana
  • Author: Stefan Jestl
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: The Vienna Institute for International Economic Studies (WIIW)
  • Abstract: This paper examines the impact of income inequality on consumption-related household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest a positive impact of income inequality on consumption-related household indebtedness in a small sample of countries. We further employ a multilevel regression model to also take country’s macroeconomic characteristics into account, such as credit market and welfare state design. In this setting, we find an overall positive impact of income inequality on consumption-related household indebtedness.
  • Topic: Economics, Inequality, Economic Inequality, Macroeconomics
  • Political Geography: Europe
  • Author: Santosh Mehrotra
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: Globally, research has shown that, there is a high correlation between the level of per capita income and the rate of female labour force participation. At the same time the agency and autonomy of women in a country improve with the level of female labour force participation. Sen (2000) has argued that the autonomy and agency of women in a society and their empowerment is enabled by four conditions in their lives. First the higher the education level of women, the more empowered they are likely to feel. Second, if they are working outside the home, they are likely to feel a sense of autonomy and empowerment. Third, they should also have an independent source of income from that of the significant other in their household. Finally, their empowerment can be usually enhanced if they own assets and have access to them. One can see from this analysis that the first three requirements for women’s’ empowerment are related to each other and to some extent co-dependent. We will keep these considerations in mind as we analyse labour markets and how women engaged with them in different parts of the world.
  • Topic: Development, Economics, Education, Gender Issues, Labor Issues, Women, Employment, Inequality
  • Political Geography: India
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: The International Center for Transitional Justice (ICTJ)
  • Abstract: This report of the Working Group on Transitional Justice and SDG16+ articulates the contributions of transitional justice to the Sustainable Development Goals (SDGs), particularly SDG 16 on peace, justice, and inclusion, but also related goals on gender and inequality. The report contends that in contexts of serious and massive human rights violations, transitional justice provides a framework for addressing the needs of victims, helping to reduce the “justice gap,” and building sustainable peace and development.
  • Topic: Gender Issues, Human Rights, Inequality, Sustainable Development Goals, Transitional Justice, Victims
  • Political Geography: Global Focus
  • Author: Marcelo Neri, Cecilia Machado, Valdemar Pinho Neto
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This paper documents the evolution and the determinants of earnings inequality in the Brazilian formal sector from 1994 to 2015, using establishment level data. In 2015, schooling explained 33 per cent of overall inequality. Firm-specific effects explain 65 per cent of total inequality level and 76 per cent of the inequality fall observed. The downward inequality trend parallels the one seen in household surveys. However, the distributive decompression goes only until the 90th percentile, which is in line with Personal Income Tax based evidence. The share of inequality explained by top 1 per cent and 0.1 per cent incomes rose 43 per cent and 91 per cent, respectively.
  • Topic: Education, Employment, Inequality, Business
  • Political Geography: Brazil, South America
  • Author: Matthew D. Stephen
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: International institutions thrive when they are utilized, their rules are respected, and they are important in shaping international outcomes. They fail when they fall into disuse, their rules are violated, or they otherwise become peripheral to the events of world politics. In order to function effectively, international institutions require a minimum level of agreement amongst their most powerful members. In many institutions today, the level of agreement is shrinking. While geopolitical tensions are real, the biggest risk to international institutions comes from the unravelling of domestic and transnational social coalitions in favour of economic openness and ideals of internationalism. To rescue international institutions, it will be necessary to take action at the national level. This means using the policy tools available to national governments to create economic security, reduce inequality, and foster inclusive community identities. This may come at the expense of deeper international integration, but it will be better for international cooperation in the long run.
  • Topic: Security, Inequality, Institutionalism, Community, International Institutions
  • Political Geography: Global Focus
  • Author: Séverine Deneulin
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: The concept of integral human development is central to the Catholic social tradition. Yet, it remains under-explored with regard to its integrating components and their implications. What does taking an integral human development perspective mean for social analysis and action? The paper seeks to answer this question on the basis of the four encyclicals in which the idea of integral human development is treated, and in combination with two other sources: 1) the literature on “human development” in the multidisciplinary social science field of international development studies and its conceptual foundations in Amartya Sen’s capability approach; and 2) the life of a faith community in a marginalized Latin American urban neighborhood. Based on a combination of these sources, the paper concludes by proposing an understanding of “integral human development” that it calls a spirituality-extended capability approach to the progress of peoples.
  • Topic: Civil Society, Development, Education, Poverty, Religion, Inequality, Youth, Violence, Christianity, Catholic Church
  • Political Geography: Argentina, South America, Latin America
  • Author: Sandra Polanía-Reyes
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This study tests an unintended benefit of a conditional cash transfer program in Colombia: the ability to overcome coordination failures. Participants interact with fellow beneficiaries, which gives rise to a coordination device. Beneficiaries participate in a minimum effort coordination game. Those enrolled in the program for over a year are exerting the highest level of effort. The improvement in coordination is not due to potential confounds such as willingness to cooperate or connectivity. A structural choice model illustrates that when beliefs about other’s behavior are sufficiently high the Pareto- dominant equilibrium holds. The findings support nascent initiatives to influence beliefs through policy interventions.
  • Topic: Civil Society, Development, Political Economy, Poverty, Communications, Governance, Inequality, Economic Growth, Public Policy, Institutions
  • Political Geography: Colombia, South America, Latin America
  • Author: Pierre Kohler, Francis Cripps
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: Global Development and Environment Institute at Tufts University
  • Abstract: This paper proposes to revisit the debate on trade and investment agreements (TIAs), development and inequality, looking at the role of Global Value Chains (GVCs) and trans- national corporations (TNCs). It first presents stylized facts about trade and investment (agreements), declining global economic growth and rising inequality under the latest round of globalization. It then provides a long-run perspective on the mixed blessings of external opening, summarizing some key contributions of the mainstream literature, which are converging with long-standing research findings of more heterodox economists, and the eroding consensus today. Based on this stock-taking, it takes a fresh critical look at the TIAs-GVCs-TNCs nexus and their impact. Using data on value-added in trade and new firm-level data from the consolidated financial statements of the top 2000 TNCs going back to 1995, it examines whether the fragmentation of production along GVCs led to positive structural change or rather stimulated unsustainable trends in extractive and FIRE sectors. It then turns to the role of TNC-driven GVCs as a vehicle for economic concentration. Finally, it presents evidence linking TIAs and their correlates to rising inequality. Key findings include the fact that the ratio of top 2000 TNCs profits over revenues increased by 58 percent between 1995 and 2015. Moreover, the rise in top 2000 TNCs profits accounts for 69 percent of the 2.5 percentage points decline in the global labour income share between 1995 and 2015, with the correlation coefficient between annual changes in both variables as high as 0.82. The paper concludes by calling for a less ideological policy debate on TIAs, which acknowledges the mixed blessings of external financial and trade opening, especially their negative distributional impact and destabilizing macro-financial feedback effects, which both call for policy intervention. As an alternative to short-sighted protectionism, it further discusses possible options for anticipating undesirable effects arising from TIAs (e.g. rising carbon emissions, economic instability, inequality, etc.) and addressing those in TIAs themselves.
  • Topic: Inequality, Investment, Trade, transnationalism
  • Political Geography: Global Focus
  • Author: Bettina Schorr
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
  • Abstract: Since the publication of the Brundtland Report in 1987, social inequality has been a topic of concern for the international development community. In the last decade, given the rise of global inequality the subject gained even more prominence as several international organizations (UNDP, World Bank, OECD) began emphasizing the negative impact of social inequality on human well-being. The Agenda 2030, the current development strategy adopted by the United Nations in 2015, elevated “reducing inequality” to one of the 17 Sustainable Development Goals (Goal No. 10). This paper connects with this growing concern over the impact of social inequalities on the opportunities for sustainable development. It proposes a research agenda for the social sciences to contribute to the debate by identifying the causal mechanisms that constitute the nexus between social inequalities and sustainable development. The focus on these intermediary steps is important in order to understand in more detail the barriers that social inequalities pose for more sustainable social, economic and ecological arrangements. This is especially necessary when it comes to designing or implementing strategies (political or technological) that aim to promote sustainable development, above all in highly unequal societies.
  • Topic: Development, Economics, Inequality, Sustainable Development Goals, Sustainability, Ecology
  • Political Geography: Argentina, Latin America, Chile
  • Author: Martyna Berenika Linartas
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
  • Abstract: Not only has been economic inequality on the rise, but also the research agenda on inequality has moved decisively from the fringes to the center of policy and academic interest. This new concern and concentration in respect to this topic, data records, and methodological approaches have given rise to a vast amount of literature. It is for this reason that I review the most important recent works engaging with the origins of economic inequality – a debate which remains highly controversial. The usual categorization to explain the different storytelling – “to be or not to be neoliberal” – seems inappropriate. In this review on “the rockstars of the realm” (Thomas Piketty, Anthony Atkinson, Branko Milanovic and Walter Scheidel), I argue that the question and reason behind different approaches is instead: politics or the economy, which is the master that defines the space for action? The gradually established allegory of “the mirrored hourglass of inequality” illustrates the salience of this cleavage.
  • Topic: International Political Economy, Political Economy, Capitalism, Inequality, Neoliberalism, Economic Inequality
  • Political Geography: Global Focus