Comments on The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach

Abstract

June 01 2019 Comments on The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2019 by the Asian Economic Panel and the Massachusetts Institute of Technology2019Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2019) 18 (2): 142–143. https://doi.org/10.1162/asep_a_00704 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach. Asian Economic Papers 2019; 18 (2): 142–143. doi: https://doi.org/10.1162/asep_a_00704 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Kwanho Shin, Korea University: Kuznets (1955) argued that although income inequality worsens during the early stages of economic development it eventually improves as the economy further develops. The reason is simple. As workers move from low-productivity sectors such as agriculture to high-productivity sectors such as manufacturing, income inequality aggravates at the beginning, but it improves as more and more workers join the high-productivity sectors. More recent studies do not support his arguments, however. For example, IMF (2007) found that income inequality is worsening again in advanced countries. OECD (2008) presents similar findings. Several explanations have been provided to account for recent worsening income inequality. First, several studies argue that skill-biased technological progress is responsible for widening wage gaps between skilled and unskilled workers, contributing to income inequality. Second, other studies also point out the role of trade globalization by arguing that imports from less-developed... You do not currently have access to this content.