Life During Structural Transformation

Jonathan Temple and Huikang Ying

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: We examine whether structural transformation leads to a Kuznets curve. We present a dynamic general equilibrium model with heterogeneous workers, occupational self-selection and selective migration, and calibrate the model to survey data for Malawi. We show that structural transformation raises living standards unevenly. As development proceeds, the movement of workers from agriculture is associated with rising wage inequality, rather than a Kuznets curve. The increase in sectoral wage inequality is pronounced for agriculture. At the same time, structural transformation is associated with major reductions in rural poverty, and eventually in urban poverty.

Keywords: Structural transformation; inequality; Kuznets curve; Roy Model. (search for similar items in EconPapers)
JEL-codes: D31 O15 O41 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-11-28, Revised 2014-12-08
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.bristol.ac.uk/efm/media/workingpapers/w ... pdffiles/dp14650.pdf (application/pdf)

Related works:
Working Paper: Life During Structural Transformation (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:14/650

Access Statistics for this paper

More papers in Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK
Bibliographic data for series maintained by Vicky Jackson ().