Sector Bias and Sector Dualism

Abstract

There are several explanations for the inequality upswing in the literature: rising globalization, the institutional re-structuring of the nation-states, as well as changes in the relation between the demand for and the supply of skills. Concerning demand changes, Kuznets and Lewis identified two inequality affecting mechanisms with regard to the agricultureto-industry transition: sector bias -that is, inequality within sectors -and sector dualismthat is, inequality between sectors. In this article it is analyzed whether there are analogue effects on inequality from the sectoral change to the knowledge society. Following the strategy of a most-similar design and a variable oriented approach the hypotheses are tested cross-nationally and longitudinally in 19 OECD countries between 1970 and 1999. To verify sectoral effects, error component models are computed regressing the Ginicoefficient on a globalization measure, the union density, the educational attainment as well as the employment and income differential in the knowledge sector. The results show that some amount of the inequality upswing in the last few decades can be explained by the sectoral change to the knowledge society.The systematic analysis of inequality variation between developed 1 countries and within countries over time is rather a new field of research (e.g. see the meta-analysis of Atkinson and Brandolini, 2004). A good proportion of theories aiming at explaining the long-term development of inequality is based on data from societies with very different levels of economic development at a rather International Journal of Comparative Sociology

How Do Neoliberal Policies Affect Income Inequality? Exploring the Link Between Liberalization, Finance, and Inequality

“…Third, finance redistributes a larger proportion of national income to wealthy households by enhancing the role of investment income (Nau 2013;Volscho and Kelly 2012). In short, this research indicates financialization augments inequality both within (Godechot 2012;Lin and Tomaskovic-Devey 2013;Nau 2013;Volscho and Kelly 2012) and across advanced industrial societies (Assa 2012;Denk 2015;Kus 2012;Kwon and Roberts 2015;Roberts and Kwon 2017;Zalewski and Whalen 2010).…”