Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163107
Authors: 
Wan, Guanghua
Wang, Chen
Zhang, Xun
Year of Publication: 
2016
Series/Report no.: 
ADBI Working Paper Series 608
Abstract: 
This study explores the relationship between inequality and structural transformation by constructing a theoretical model, developing analytical frameworks, and implementing a case study. The general equilibrium model we develop demonstrates that inequality exhibits an inverted U shape as structural change proceeds from onset to completion. Our analytical frameworks enable decomposition of total inequality into sector contributions and a change in total inequality into a component attributable to structural transformation and the other component to concentration or spatial agglomeration. Applying the decomposition frameworks to data from the People's Republic of China yield various interesting findings and more importantly confirms the inverted U shape as predicted by our theoretical model.
Subjects: 
Structural transformation
structural change
income distribution
income inequality
inequality decomposition
spatial agglomeration
macroeconomics
China
JEL: 
D63
O53
R12
O18
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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