On Growth and Income Distribution in a Globalizing World
The basic idea explaining the relationship between economic growth and income distribution is the “U- shaped hypothesis” postulated by Simon Kuznets. This can be shown in a dual-economy model with technical progress. Initially, inequality is low, but as labour participation in the modern sector incr...
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| Format: | Online |
| Language: | spa |
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Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
2008
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| Online Access: | https://revistas.unc.edu.ar/index.php/REyE/article/view/3851 |
| _version_ | 1811172126517886976 |
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| author | Eisen, Roland |
| author_facet | Eisen, Roland |
| author_sort | Eisen, Roland |
| collection | Portal de Revistas |
| description | The basic idea explaining the relationship between economic growth and income distribution is the “U- shaped hypothesis” postulated by Simon Kuznets. This can be shown in a dual-economy model with technical progress. Initially, inequality is low, but as labour participation in the modern sector increases, higher wages in this sector tend to increase inequality. However, if enough labour is incorporated in the modern sector, wage inequality begins to diminish. Income inequality continues to worsen between the two sectors, if a new modern economy (e.g. IT-based technical change) is introduced and potential GDP shifts to a new trajectory before the turning point is reached. In a globalised word, the substantial unskilled-labour-saving technical progress puts pressure on wages of unskilled workers (in industrialized countries). Also, globalization may be blamed for leaving many nations and millions of people out from reaping the benefits of globalization. This problem can only be overcome by appropriate reforms of the international economic system.
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| format | Online |
| id | oai:ojs.revistas.unc.edu.ar:article-3851 |
| institution | Universidad Nacional de Cordoba |
| language | spa |
| publishDate | 2008 |
| publisher | Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. |
| record_format | ojs |
| spelling | oai:ojs.revistas.unc.edu.ar:article-38512022-04-06T22:52:31Z On Growth and Income Distribution in a Globalizing World Eisen, Roland economic growth income distribution globalization D31 O11 The basic idea explaining the relationship between economic growth and income distribution is the “U- shaped hypothesis” postulated by Simon Kuznets. This can be shown in a dual-economy model with technical progress. Initially, inequality is low, but as labour participation in the modern sector increases, higher wages in this sector tend to increase inequality. However, if enough labour is incorporated in the modern sector, wage inequality begins to diminish. Income inequality continues to worsen between the two sectors, if a new modern economy (e.g. IT-based technical change) is introduced and potential GDP shifts to a new trajectory before the turning point is reached. In a globalised word, the substantial unskilled-labour-saving technical progress puts pressure on wages of unskilled workers (in industrialized countries). Also, globalization may be blamed for leaving many nations and millions of people out from reaping the benefits of globalization. This problem can only be overcome by appropriate reforms of the international economic system. Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2008-12-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/REyE/article/view/3851 10.55444/2451.7321.2008.v46.n2.3851 Revista de Economía y Estadística; Vol. 46 No. 2 (2008); 33-46 Revista de Economía y Estadística; Vol. 46 Núm. 2 (2008); 33-46 2451-7321 0034-8066 10.55444/2451.7321.2008.v46.n2 spa https://revistas.unc.edu.ar/index.php/REyE/article/view/3851/6773 Derechos de autor 2008 Roland Eisen http://creativecommons.org/licenses/by-nc-nd/4.0 |
| spellingShingle | economic growth income distribution globalization D31 O11 Eisen, Roland On Growth and Income Distribution in a Globalizing World |
| title | On Growth and Income Distribution in a Globalizing World |
| title_full | On Growth and Income Distribution in a Globalizing World |
| title_fullStr | On Growth and Income Distribution in a Globalizing World |
| title_full_unstemmed | On Growth and Income Distribution in a Globalizing World |
| title_short | On Growth and Income Distribution in a Globalizing World |
| title_sort | on growth and income distribution in a globalizing world |
| topic | economic growth income distribution globalization D31 O11 |
| topic_facet | economic growth income distribution globalization D31 O11 |
| url | https://revistas.unc.edu.ar/index.php/REyE/article/view/3851 |
| work_keys_str_mv | AT eisenroland ongrowthandincomedistributioninaglobalizingworld |