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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 25, No. 1, pp.25-56
ISSN: 1225-0279 (Print)
Print publication date 29 Feb 2012
Received 25 Apr 2008 Revised 09 Nov 2010 Accepted 13 Jun 2011

Income Distribution and Structural Transformation: Empirical Evidence from Developed and Developing Countries

Ananya G. Dastidar
Assistant Professor, Department of Business Economics, University of Delhi South Campus, Benito Juarez Road, New Delhi—110021, India, Tel: 91-011-24110181, Fax: 91-011-24111141 agdastidar@gmail.com

JEL Classification: C23, D31, O15, O17

Abstract

The process of structural transformation forms the very basis of economic growth and development. This paper analyses the implications of alternate patterns of structural change for changes in the overall distribution of income within an economy. An empirical analysis is carried out based on evidence from seventy-eight developing and transition economies and developed countries. The estimated results from a fixed effects panel data model, indicate the existence of substantial differences as well as important similarities between developed and developing country experience with respect to structural change and associated changes in income inequality.

Keywords:

Income distribution, Inequality, Informal sector, Institutions, Panel data, Structural change

Acknowledgments

I am grateful to Amit Bhaduri, Deepak Nayyar, and Hiranya Mukhopadhyay for their help and guidance in writing this paper. I would especially like to thank two anonymous referees of this Journal for an excellent set of comments. I would also like to thank Aditya Bhattacharjea and Suresh Tendulkar for extremely helpful suggestions. The usual disclaimer applies.

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