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Fast Development with a Stable Income Distribution: Taiwan, 1979-1994

François Bourguignon, M. Fournier and Marc Gurgand

DELTA Working Papers from DELTA (Ecole normale supérieure)

Abstract: This paper studies the mechanisms underlying the apparent stability of the income distribution in Taiwan. An original decomposition methodology based on micro-simulation techniques is proposed. Applied to the distribution of income in Taiwan since 1979 it permits isolating the respective impact of changes in : a) earning structure ; b) labor-force participation behavior ; and c) the socio-demographic structure of the population. The stability of the distribution in Taiwan appears as the result of various structural forces which happened to offset each other. At the individual level, the small drop observed in inequality resulted from the combination of unequalizing changes in the wage structure and the effects of changes in female labor-force participation as well as changes in the educational structure of the population. The same offsetting forces, together with changes in the composition of households, resulted in a small increase in the inequality of the distribution of equivalized household income.

Keywords: INCOME DISTRIBUTION; ECONOMIC DEVELOPMENT; TAIWAN; SIMULATION (search for similar items in EconPapers)
JEL-codes: C50 D31 D63 O10 O53 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2000
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Published in Review of Income and Wealth, 2001, 47(2), pp. 139-163

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