Aging and inequality: The link and transmission mechanisms

Abstract

There exists a shortage of rigorous empirical analyses that focus on the aging‐to‐inequality transmission mechanisms although both developed and some developing countries have been confronted with the challenge of population aging. Using cross‐country panel data covering the period of 1975 to 2015, this paper contributes to the literature by directly modeling the relationship between aging and inequality and exploring the transmission mechanisms. Our estimation results show that (1) Aging worsens income distribution; (2) This adverse impact is attributable to its negative correlation with the share of labor income that in general is more equally distributed than capital income; (3) The labor share‐reducing effect of aging can be further attributed to the significant and negative impact of aging on both labor input or supply and wage or labor productivity; and (4) Our findings are robust to changes in model specifications, use of different indicators of aging, different inequality and labor share data sources.

Poverty and inequallity in Asia: 1965-2014

“…Another indicator of income distribution is the labour share in national income. Analytically, a decline in the labour share implies rising inequality as labour income is usually more equally distributed than capital income (Luo et al 2018;Piketty 2014;Jacobson and Occhino 2012). As shown in Figure 7, Asian economies except Hong Kong, Mongolia, and Singapore experienced decreases in the labour share, with the largest decline observed in India (from 71.75 per cent in 1975 to 49.54 per cent in 2011).…”

Poverty and Inequality

“…Another indicator of income distribution is the labour share in national income. Analytically, a decline in the labour share implies rising inequality as labour income is usually more equally distributed than capital income (Jacobson and Occhino 2012;Piketty 2014;Luo et al 2018). Based on PWT data, except Hong Kong, Mongolia, and Singapore, all other economies in Asia experienced decreases in the labour share, with the largest decline observed in India (from 71.75 per cent in 1975 to 49.54 per cent in 2011).…”

PHẬT VIỆN ĐỒNG DƯƠNG: MỘT PHONG CÁCH CỦA NGHỆ THUẬT CHAMPA [THE ĐỒNG DƯƠNG MONASTERY: THE UNIQUE STYLE OF CHAMPA ART]. By Ngô V.Doanh. Thành Phố Hồ Chí Minh: NXB Văn Hóa‐Văn Nghệ, 2015. Pp. 159. Paperback, VND 150,000.

“…Another indicator of income distribution is the labour share in national income. Analytically, a decline in the labour share implies rising inequality as labour income is usually more equally distributed than capital income (Jacobson and Guanghua Wan and Chen Wang 247 Occhino 2012; Piketty 2014; Luo et al 2018). Based on PWT data, except Hong Kong, Mongolia, and Singapore, all other economies in Asia experienced decreases in the labour share, with the largest decline observed in India (from 71.75 per cent in 1975 to 49.54 per cent in 2011).…”