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31. IMF Standby Agreements and Inequality: The Role of Informality

Author:
Ceyhun Elgin and Adem Elveren
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this paper we investigate the response of two inequality metrics to different IMF programs. To this end, we use a relatively large annual (unbalanced) cross-country panel dataset that includes the Gini index and the Estimated Household Income Inequality as the two relevant inequality metrics and covers the period from 1950 to 2016 in an annual basis for 159 countries. Our empirical analysis indicates that in countries where the informal sector size (as percentage of GDP) is relatively larger, the extent of income inequality increases after different IMF programs, but particularly so after standby arrangements. However, we also show that the opposite is true, when informal sector size is small, i.e., inequality declines after different IMF programs.
Topic:
Political Economy, Inequality, IMF, and Informal Economy
Political Geography:
Global Focus

32. Multidimensional Impact of COVID-19 on Education and Implications on Inclusive Recovery

Author:
Gee Young Oh
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This report aims to present the findings of Oh et al. (2023), which analyzes the post-pandemic inequality levels in developing countries and derives policy implications for Korea's international development cooperation (IDC) to help reduce inequality, especially in the education sector. The impact of COVID-19 on education is multidimensional, with varying levels of heterogeneity across countries, regions, households, and individual stakeholders, including students, parents, and teachers. To comprehensively understand this multidimensionality, the study compares situations in two countries to explore inter- and intra-country educational disparities. After identifying such multidimensionality, the study derives policy implications on how Korea’s IDC can better target post-pandemic inequality in education.
Topic:
Development, Education, International Cooperation, Inequality, and COVID-19
Political Geography:
Asia and South Korea

33. Episode 01: Except for Palestine: The Limits of Progressive Politics

Author:
Mark Lamont Hill and Mitchell Plitnick
Publication Date:
02-2024
Content Type:
Video
Institution:
Center for Security, Race and Rights (CSRR), Rutgers University School of Law
Abstract:
Scholar Marc Lamont Hill and Israel-Palestine expert Mitchell Plitnick spotlight how holding fast to one-sided and unwaveringly pro-Israel policies reflects the truth-bending grip of authoritarianism on both Israel and the United States. 'Except for Palestine' deftly argues that progressives and liberals who oppose regressive policies on immigration, racial justice, gender equality, LGBTQ rights, and other issues must extend these core principles to the oppression of Palestinians.
Topic:
Human Rights, Politics, Authoritarianism, Inequality, LGBT+, Liberalism, Progressivism, Gender, Palestinians, and Racial Justice
Political Geography:
Middle East, Israel, Palestine, North America, and United States of America

34. Cuban Privilege: The Making of Immigrant Inequality in America

Author:
Susan Eckstein
Publication Date:
10-2023
Content Type:
Video
Institution:
MIT Center for International Studies
Abstract:
About the speaker: Susan Eckstein is a Professor in the Pardee School of Global Studies and in the Sociology Department at Boston University. She has written numerous books and articles on Mexican urban poor, political-economic developments in Cuba, Cuban immigrants, immigration policy, impacts of Latin American revolutions, and edited books on Latin American social movements and social rights, and on immigrant impacts in their homelands.
Topic:
Poverty, Inequality, and Immigrants
Political Geography:
Cuba, North America, and United States of America

35. Starr Forum: Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity

Author:
Daron Acemoglu and Fotini Christia
Publication Date:
10-2023
Content Type:
Video
Institution:
MIT Center for International Studies
Abstract:
A thousand years of history and contemporary evidence make one thing clear: progress depends on the choices we make about technology. New ways of organizing production and communication can either serve the narrow interests of an elite or become the foundation for widespread prosperity. Today, digital technologies and artificial intelligence threaten jobs and democracy through excessive automation, massive data collection, and intrusive surveillance. Will the next decades bring shared prosperity or a further move in the direction of two-tiered societies? Join us for this important discussion with Daron Acemoglu, the co-author of Power and Progress.
Topic:
Science and Technology, Communications, Inequality, Elites, Prosperity, and Production
Political Geography:
Global Focus

36. Barriers or catalysts? Traditional institutions and social mobility in rural India

Author:
Vegard Iversen, Anustup Kundu, Rahul Lahoti, and Kunal Sen
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine how village-level social group dominance affects the educational and occupational mobility of minority and other social groups in rural India across multiple generations. We distinguish between upper caste and own-group dominance and examine the mechanisms underpinning inequality in mobility outcomes. We find inequality in upward educational mobility to have significantly narrowed over time, with Scheduled Castes doing better in upper caste- and own-dominated villages, while Scheduled Tribes and Muslims do worse in own-dominated villages. In contrast, for occupational mobility we find no evidence of minority groups catching up with upper castes; Scheduled Castes and Scheduled Tribes are particularly disadvantaged, but Scheduled Castes, again, do comparatively better in their own-dominated villages. Exploring the mechanisms that explain the relationships between land dominance regimes and mobility, we find that a combination of agroecological and natural resource base and social cohesion of villages underpins the differences observed more than public goods provision. Our findings suggest a new pattern of inequality where historically disadvantaged groups appear less able to convert educational gains into labour market and occupational progress.
Topic:
Education, Inequality, Rural, Social Mobility, and Traditional Institutions
Political Geography:
South Asia and India

37. Wage inequality, firm characteristics, and firm wage premia in South Africa

Author:
Shakeba Foster
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based decomposition methods are applied to matched employer–employee administrative tax data for the period 2011–19. Additionally, the Theil index is used as a comparative tool for estimating wage inequality, given that the variance of logarithms applied in the regression-based decomposition methods has been established as an imprecise measure of inequality. The results show significantly high dispersion in wages, as estimated by both the AKM and the KSS methods as well as the Theil index, reaffirming the extent of high inequality in the country. Worker and firm characteristics account for 35 per cent and 18 per cent of wage dispersion, respectively, with a positive worker–firm covariance accounting for 11 per cent. Firm size, industry, profits, geographical location, and whether firms are locally or foreign-owned are found to be important in driving firm wage premia.
Topic:
Labor Issues, Inequality, Economy, and Wages
Political Geography:
Africa and South Africa

38. Construction productivity and global inequality

Author:
Saumik Paul and Kunal Sen
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Two well established stylized facts of economic development are a strong correlation between investment and income, and large differences in investment rates across countries. Construction is the largest component of investment. This paper examines the implications of heterogeneity in construction productivity on cross-country income disparity. We estimate the 10:1 spread in construction productivity among 145 countries in 2005 as a factor of 61.7-fold. Based on a general equilibrium model with input–output linkages, we find that the 10:1 spread in income per capita declines by 45 per cent when the construction productivity gap is eliminated. Sectoral characterization of the aggregate effect of a change in construction productivity shows heterogeneous sectoral contributions to income convergence. Electrical equipment, metals, and transport equipment play stronger roles in transforming the effect of a change in construction productivity to the aggregate level in China compared with other countries.
Topic:
Inequality, Investment, Productivity, Construction, and Income
Political Geography:
China and Global Focus

39. Degrees of disadvantage

Author:
Chinmayi Srikanth
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This study is positioned in two strands of literature—intersectionality and social mobility. It is the first to measure (dis)advantage at the individual level as an outcome of the intersectionality of identities and parental circumstances. By linking circumstances at the parental level with (dis)advantage at the individual level, this study uses fuzzy-set Qualitative Comparative Analysis (fsQCA) in an unprecedented application, i.e. to study social mobility or generational persistence. By accounting for intersectional ascribed identities, this study is also the first to analyse social mobility for the intersectionality of caste, religion, and gender identities. Using data from the India Human Development Survey 2011–12, the study finds that, in a given generation, Hindu women can observe high outcomes only if they are born into advantageous parental circumstances. This is further tempered by their position in the social hierarchy. For men, advantageous circumstances are not a necessary precondition for upward mobility. By building epistemological arguments, this paper also makes a contribution by being the first to contend that fsQCA is the ideal method to study overdeterministic social science phenomena.
Topic:
Development, Women, Inequality, Identity, and Social Mobility
Political Geography:
South Asia and India

40. Pandemic Responses in the MENA Region: Lessons learned for an inclusive economic recovery

Author:
Salma Jrad, Amine Bouzaine, Nadine Mezher, and Anna Chernova
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The COVID-19 pandemic exacerbated existing inequalities and poor governance practices in the MENA region and had a disproportionate impact on the most vulnerable people. These persistent and structural issues also threaten a post-COVID inclusive recovery process. Austerity steers from institutions like the IMF risk further inequality and social exclusion, as evidenced by diverse and gendered impacts on the most vulnerable, including through low public spending on health and social protection. Economic and fiscal justice through progressive taxation and inclusive, crisis-resilient public spending are two key policy solutions to prevent future crises impoverishing the most vulnerable in the region. As the world recovers from the pandemic, now is the time for national and global policymakers – including international financial institutions – to take stock and seek policy alternatives that take a rights-based, inclusive, holistic and resilience-focused approach to recovery efforts, resourced through progressive taxation.
Topic:
Governance, Inequality, Finance, COVID-19, Inclusion, and Economic Recovery
Political Geography:
Middle East and North Africa