Wage Structures in Less-Developed Countries

Berg, Elliot J.

doi:10.1007/978-1-349-00105-7_22

Cited by 11 publications

(9 citation statements)

References 2 publications

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“…As to the size of the subsistence economy there is little systematic and consistent evidence for our countries which could be used to make a correction. Subsistence agriculture was particularly important in the early decades of the last century in Brazil, Colombia, Mexico and Venezuela, and less so in the relatively more advanced and urbanised economies of Argentina and Chile (Berg 1970). To the extent that the measured overall income underestimates the subsistence economy, our estimates are biased against inequality because it would reduce the actual size of Group 1's income, which is calculated as a residual.…”

Section: Methodsmentioning

confidence: 60%

Functional Inequality in Latin America: News from the Twentieth Century

Astorga

2017

Has Latin American Inequality Changed Direction?

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Section: Methodsmentioning

confidence: 60%

Functional Inequality in Latin America: News from the Twentieth Century

Astorga

2017

Has Latin American Inequality Changed Direction?

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“…The three classes of measures in most common 2 For instance, Fishlow [1972] demonstrates that given the existing pattern of income distribution in Brazil, the economy would have to grow at a rate of 5 percent per year for twenty years before the poor would attain incomes of $100 per capita. 3 These conclusions are drawn from Berg [1969]. He also presents evidence that while skilled-unskilled wage differences widened, skilled-unskilled wage ratios have generally narrowed.…”

Section: Absolute and Relative Approaches For Evaluating Growth Amentioning

confidence: 94%

A Welfare Economic Approach to Growth and Distribution in the Dual Economy

Fields

1979

The Quarterly Journal of Economics

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Excerpt] This paper presents a welfare economic analysis of the distributional consequences of growth, a problem that has attracted much attention from development economists of late. We shall explore the similarities and differences between the absolute income and poverty and relative inequality approaches for a general dualistic development model and for three stylized special cases. It will be shown that these approaches are not always in agreement and, more disturbingly, that the most notable discrepancy is found in the most relevant stylized model-growth via the transfer of population from a backward to an enlarging advanced sector. The fact of these discrepancies raises the important question of how to measure changing income distribution in a manner consistent with the judgments we wish to make about the alleviation of absolute poverty and changes in relative income inequality. A general welfare function is formulated to address these issues. Recent controversies over who received the benefits of growth in two less developed countries-Brazil and India-are examined in these terms.

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“…Its 1978 value was 2.33 times the 1968 level. The factors which go (1968( -1980( ) Year 1968( 1969( 1970( 1971( 1972( 1973( 1974( 1977( 1980 into increasing such an aggregate and abstract figure as the earnings of the average employee are numberable. Among the most important factors in Tanzania are the periodic adjustments in the minimum wage which affects the earnings of workers at and near the minimum, raising the pay scale for low-skilled workers.…”

Section: Earnings Differentials Among the Representative Incomementioning

confidence: 99%

“…351 in personal income taxes, i.e., an effective tax rate of 18.3 percent on the additional earnings above the minimum. Once again, given that a (1969( -1980( ) Year 1968( 1969( 1970( 1971( 1972( 1973( 1974( 1977( 1980 disproportionate number of workers were at or near the minimum, there was a major flaw in the 1974 tax revision. The enactment of the 1980 income tax law ameliorated this flaw.…”

Section: Earnings Differentials Among the Representative Incomementioning

confidence: 99%

“…These data illustrate the effect that the accelerated rate of inflation has had on the purchasing power of the disposable earnings of the various income groups. To account for the disproportionate manner in which inflation strikes at the earnings of different income groups, different deflators are used to deflate the (1969( -1980( ) Year 1968( 1969( 1970( 1971( 1972( 1973( 1974( 1977( 1980 nominal disposable earnings of each income group. 6 The "Index of Retail Prices for Goods Consumed by Minimum Wage Earners in Dar es Salaam" is used to deflate the earnings of MWEs (see Appendix I).…”

Section: Earnings Differentials Among the Representative Incomementioning

confidence: 99%

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Wage Adjustments, Progressive Tax Rates, and Accelerated Inflation: Issues of Equity in the Wage Sector of Tanzania

Valentine¹

1983

African Studies Review

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In 1967, with the adoption of the Arusha Declaration, the government of Tanzania formally committed itself to a development path based on socialism and self-reliance. Major changes were made in national development objectives and the development strategy. At the outset the new policies “revolved around the inhibition of widening income differentials, the discouragement of the growth of a self-serving elite, and the seizure of control of major sectors of the economy” (Bienefeld, 1975: 249). In part, increased concern over the growth of income inequality between urban wage employees and the rural masses as well as among high-salary and low-wage urban employees themselves precipitated the Arusha Declaration. In light of this, a major objective of post-Arusha income policy was to ensure relatively equal personal consumption capacity between households and regions as well as between urban and rural areas. The focus of this paper is the wage sector, where the government has directed its efforts toward reducing income inequality between the various groups of wage-and salary-earners. The period of analysis is 1968-80. The paper examines the major instruments of income policy used to reduce income inequality in the wage sector, the effect income policy variables have on real earnings of various income groups, and the resulting trends of real disposable earnings. In order to overcome data limitations and to facilitate the analysis, four representative income groups are selected. The use of these representative income groups permits an analysis of the effects that an accelerated rate of inflation, wage adjustments, and the increased progressivity in personal income tax rates have had on real disposable earnings of various groups in the income stratum.

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Wage Structures in Less-Developed Countries

Cited by 11 publications

References 2 publications

Functional Inequality in Latin America: News from the Twentieth Century

Functional Inequality in Latin America: News from the Twentieth Century

A Welfare Economic Approach to Growth and Distribution in the Dual Economy

Wage Adjustments, Progressive Tax Rates, and Accelerated Inflation: Issues of Equity in the Wage Sector of Tanzania

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