Where in the World are You? Assessing the Importance of Circumstance and Effort in a World of Different Mean Country Incomes and (Almost) No Migration

Milanović, Branko

doi:10.2139/ssrn.991703

Cited by 9 publications

(5 citation statements)

References 7 publications

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“…In contrast, the shares of the middle deciles did not change much: the share of the fifth decile dropped from about 8.6 per cent to 8.1 per cent; the share of the sixth from 9.6 to 9.3 etc. This is consistent with other evidence which shows that the biggest difference (in cross-country studies) between the relatively unequal and relatively equal countries is observed in their top and bottom decile shares whereas the middle classes' income shares are relatively stable (Milanovic 2008;Palma 2006). One can thus expect that a temporal change in inequality as here would involve most important swings for the two extreme deciles.…”

Section: Main Trendssupporting

confidence: 92%

Reform And Inequality During The Transition: An Analysis Using Panel Household Survey Data, 1990-2005

Milanović¹,

Ersado²

2008

Policy Research Working Papers

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This paper, using for the first time household survey data from 26 post-communist countries, covering the period 1990-2005, examines correlates of unprecedented increases in inequality registered by most of these economies. We find that, after controlling for country-fixed effects and type of survey used, economic reform (measured by the EBRD index) is strongly negatively associated with bottom deciles' income shares and positively with income shares of the top two deciles. However, once economic reform is broken into its different component parts, the picture is more nuanced: large-scale privatization and infrastructure reform (mostly consisting of privatization and higher fees) are responsible for this pro-inequality effect while smallscale privatization tends to raise income shares of the bottom deciles. Acceleration in growth is also pro-rich. On the other hand, democratization (measured by the Polity measure) is strongly pro-poor, as is lower inflation. Somewhat surprisingly, we find no evidence that higher government spending as share of GDI reduces inequality.

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Section: Main Trendssupporting

confidence: 92%

Reform And Inequality During The Transition: An Analysis Using Panel Household Survey Data, 1990-2005

Milanović¹,

Ersado²

2008

Policy Research Working Papers

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“…Median: 1 -(4.11/6.20) = 33.7%. Mean: 1 -(5.11/7.27) = 29.6% Milanovic (2008). shows that country fixed effects explain roughly 60 percent of all income inequality across individuals in the world, but this includes inequality due to differential access to capital and different levels of human capital.…”

mentioning

confidence: 99%

The Place Premium: Wage Differences for Identical Workers Across the U.S. Border

2009

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We estimate the "place premium"-the wage gain that accrues to foreign workers who arrive to work in the United States. First, we estimate the predicted, purchasing-power adjusted wages of people inside and outside the United States who are otherwise observably identical-with the same country of birth, country of education, years of education, work experience, sex, and rural or urban residence. We use new and uniquely rich micro-data on the wages and characteristics of over two million individual formal-sector wage-earners in 43 countries (including the US). Second, we examine the extent to which these wage ratios for observably equivalent workers may overstate the gains to a marginal mover because movers may be positively selected on unobservable productivity in their home country. New evidence for nine of the countries, combined with a range of existing evidence, suggests that this overstatement can be significant, but is typically modest in magnitude. Third, we estimate the degree to which policy barriers to labor movement in and of themselves sustain the place premium, by bounding the premia observed under self-selected migration alone. Finally, we show that the policyinduced portion of the place premium in wages represents one of the largest remaining price distortions in any global market; is much larger than wage discrimination in spatially integrated markets; and makes labor mobility capable of reducing households' poverty at the margin by much more than any known in situ intervention.

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“…To what extent the existence of equal starting conditions for earning income is the reality of market economies, there is no unified opinion. Branko Milanovic, a former World Bank economist and recognized authority in the field of income distribution research, says that 70-85% of the difference in income in 2008 can be explained by the action of factors related to the existence of unequal opportunities -the country of residence and parents' income (Milanovic, 2008). As a typical country that does not represent a country of equal opportunities, Stiglitz (Stiglitz, 2015) states the United States, supporting this view by stating that only 6% of children born in the lower fifth of the income scale are able to reach the peak (Stiglitz, 2015).…”

Section: Types and Characteristics Of Income Inequalitymentioning

confidence: 99%

Економско-Теоријски Аспекти И Актуелне Импликације Проблема Неравномерне Расподеле Дохотка

Petrović¹,

Stefanović²

2021

TEME

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The paper analyzes the key aspects of economic inequality in the light of conflicting attitudes and arguments of various theoretical and methodological concepts. The conclusions of the empirical studies are outlined and indicate that economic growth is threatened in the conditions of escalation of inequality and the resultant undermining of the stability and efficiency of the economic and institutional system. On the other hand, we also evaluate the findings of those surveys showing that a strong redistribution of income leads to the reduction of the rate of economic growth, emphasizing that inequality is an important feature of the market economy. At the same time, we identify objective difficulties and the causes of insufficiently relevant understanding of problems related to uneven distribution of income, and the key dilemmas regarding the scientific evaluation of the implications of economic inequality are analyzed. It is pointed out that there is a need to distance the academic community from presenting empirically unfounded observations and unjustified exaggerations, as well as underestimating the economic and social challenges of solving the problem of uneven distribution of income. In this context, the results of the researches of economic inequality in the Republic of Serbia were analyzed, with reference to the role, position and orientation of the state in terms of designing and implementing measures aimed at mitigating its consequences on the economy and society.

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Where in the World are You? Assessing the Importance of Circumstance and Effort in a World of Different Mean Country Incomes and (Almost) No Migration

Cited by 9 publications

References 7 publications

Reform And Inequality During The Transition: An Analysis Using Panel Household Survey Data, 1990-2005

Reform And Inequality During The Transition: An Analysis Using Panel Household Survey Data, 1990-2005

The Place Premium: Wage Differences for Identical Workers Across the U.S. Border

Економско-Теоријски Аспекти И Актуелне Импликације Проблема Неравномерне Расподеле Дохотка

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