A model of income distribution and economic development

Zusammenfassung Ein Modell über den Zusammenhang zwischen Einkommensverteilung und wirtschaftlicher Entwicklung. — Das in dem vorliegenden Aufsatz entwickelte Modell beweist, da\ die Einkommensverteilung eine wichtige Rolle bei der wirtschaftlichen Entwicklung weniger entwickelter L?nder spielen kann. Die Einkommensverteilung ist nicht nur etwa von Interesse für vage Gerechtigkeitsvorstellungen, sondern sie kann selbst einen gr?\eren Beitrag zum Wachstumsproze\ leisten. Der gew?hnlich behauptete ?trade-off? zwischen Wachstum und Gerechtigkeit sollte nicht vorschnell akzeptiert werden. Es l?\t sich zeigen, da\ diese Wachstums-Gerechtigkeits-Alternative unter gewissen Umst?nden nicht besteht. Eine ungleiche Einkommensverteilung kann n?mlich einen Engpa\ für weiteres Wachstum bilden.

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Résumé Un modèle de la distribution du revenue et du développement économique. — Le modèle développé dans cet article démontre que la distribution du revenu peut jouer un r?le important dans le développement économique des pays moins développés. Il ne faut pas croire que la distribution du revenu n’est interessante qu’au point de vue de vagues idées de justice; elle peut, elle-même, contribuer considérablement au processus d’accroissement. Le ?trade-ofi? généralement constaté entre l’accroissement et la justice, ne devrait pas être accepté inconsidérément. On peut démontrer que, dans certaines conditions, l’alternative accroissement-justice n’existe pas. Une distribution inégale du revenu peut très bien former un défilé qui retarde l’accroissement.

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Resumen Un modelo de distribución de ingreso y desarrollo económico. — El modelio elaborado en el presente articulo demuestra que la distribución del ingreso puede desempenar un papel importante en el desarrollo económico de países menos avanzados. La distribución del ingreso no es solamente importante bajo el punto de vista de justicia social, sino también con respecto a la contribución que puede hacer para el crecimiento econ?mico. La afirmación generalizada de la existencia de un ?trade-off? entre crecimiento y justicia no se debería aceptar precipitadamente. Se puede demostrar, que la alternativa entre crecimiento y justicia en ciertas circunstancias no existe. Una distribución desigual del ingreso bien puede ser un cuello de botella para un major crecimiento.

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Riassunto Un modello della distribuzione dei redditi e di sviluppo economico. — Il modello sviluppato nel presente saggio dimostra che la distribuzione dei redditi può avere una parte importante nello sviluppo economico dei Paesi meno sviluppati. La distribuzione dei redditi non ha soltanto importanza per vaghe idee di giustizia, ma puó rendere, essa stessa, un maggior contributo per il processo di crescita. L’usuale affermato ?trade-off? tra crescita e giustizia non dovrebbe essere prematuramente accettato. Si può mostrare che questa alternativa di crescita e giustizia in certe circostanze non esiste. Un’ineguale distribuzione dei redditi può formare infatti una strozzatura per ulteriore crescita.

     

The brain drain and income taxation: Canadian estimates

It has recently been proposed that a surfax be levied on the incomes of skilled immigrants from LDCs to DCs, with the proceeds used for developmental spending in LDCs. This paper presents estimates of the amounts which would have been collected by such a surfax in Canada in 1972 if it had been levied at a 10 per cent rate on disposable (after regular income taxes) income, assuming skilled immigrants were subject to the surtax for a period of ten years following immigration. Estimates of the elasticity of the response of immigrant flows to such a surtax are also presented.     

Brain drain and income taxation: A UK case study

This paper summarizes the UK experience of professional immigration from LCDs since World War II, with specific estimates for the period between 1964–1972. Bhagwati-type estimates [see J. Bhagwati and W. Dellalfar, “The Brain Drain and Income Taxation”, World Development, Vol. 1. No. 1 (February 1973).] are made in order to assess the potential revenue which might be raised through imposition of a surtax on after-UK-tax incomes of professional immigrants. This revenue would then be recycled back to the LDCs. The paper considers such influences on immigration trends as UK employment prospects and immigration policy in the USA, and closes with a discussion of the scope and implications of the proposed tax.     

Intergenerational income mobility and economic freedom

Numerous studies have found that income inequality reduces the chances of upward relative mobility (i.e., climbing up the income ladder). However, most of this work ignores the role played by institutional quality (namely, economic freedom) in determining mobility and increasing the individual's set of choices. We fill this gap by empirically testing the direct and indirect (through economic growth) impacts of economic freedom on intergenerational income mobility. We find that economic freedom has both direct and indirect effects on intergenerational income mobility, while income inequality is a strong predictor of downward income mobility. When we incorporate findings about the purely mechanical relationship between inequality and intergeneration income mobility, we find that the legal system and property rights component of economic freedom matters more than inequality. These results suggest that good institutions can increase intergenerational income mobility.     

The impacts of environmental pollution and brain drain on income inequality

This paper establishes a two-sector general equilibrium model of a small open economy to examine the impact of environmental pollution on income inequality via brain drain. The results of the equilibrium modelling show that environmental pollution in the source country can widen the income gap between skilled and unskilled workers and that brain drain caused by environmental pollution will amplify this effect; furthermore, improving the environmental quality in the recipient country will widen the skilled-unskilled income gap in the source country. Our empirical results show that deteriorating the environmental quality in the source country increases income inequality and that brain drain caused by environmental quality will amplify the effect. Our sample is divided into four sub-samples: stage of national development, level of national income, status of environmental pollution and situation of brain drain. We find that environmental pollution has different effects on income inequality via brain drain in these sub-samples. Comparing the heterogeneous components of environmental quality, we find that brain drain caused by diminished ecosystem vitality and by air quality affecting human health will widen income inequality but that other factors related to environmental quality have no significant impacts on the effect of brain drain on income inequality. The results of a robustness test support these conclusions.     

Crime and income inequality: An economic approach

Conclusion When a given pie is redivided in a less equalitarian manner, it is uncertain whether those already undertaking illegal activity will increase or decrease their activities, since the return to illegal activities is countered by the loss due to punishment (which is more painful to a criminal who failed) on one hand, and from the cost of the sacrifice of utility from legitimate activities on the other hand.If the absolute level of wealth remains constant but relative position declines, an incentive is generated to re-establish a person's standing by joining the crime industry. This is certainly the case at the margin for those close to the boundary of joining, i.e., those who are almost indifferent between joining or remaining within the legal framework.Assuming an individual is already participating in illegal activities, the effect of either an absolute or relative change in his level of wealth on his level of illegal activities is indeterminate. This applies both to the case where the total wealth of the society is fixed and the share of the pie going to the rich rises and the case where the total pie rose but the entire gain went only to the rich.In summary, it has been shown that an increase in wealth inequality has an indeterminate outcome both with respect to the decision of the poor on whether or not to enter the crime industry and with respect to the decision of those already participating in illegal pursuits to increase or decrease their level of activity. This conclusion is somewhat contrary to the general consensus of the literature, which appears to hold that increases in wealth inequality will tend to increase both the level of participation in the crime industry and the level of output within the industry.     

Black economic thought and the southern economy

From early in the nineteenth century Southern whites often analyzed the ills of the South as originating in the region’s colonial relation to the North. A survey of black economic thought, academic, journalistic and political, suggests that this notion was never strongly endorsed by black intellectuals. The outstanding exceptions were works by black sociologists collaborating with white colleagues in the 1930s. For the most part, however, black writers subscribed to a view that emphasized the dependent nature, not of the South, but of the economy of the black community in its relations with the South.     

Brain drain,brain gain,and economic growth in China

We have used Chinese provincial data (1980–2005) to examine the effects of permanent and temporary emigration on human capital formation and economic growth in source regions. First, we find that permanent emigration is conducive to the improvement of both middle and high school enrollment. In contrast, while temporary emigration has a significantly positive effect on middle school enrollment it does not affect high school enrollment. Moreover, the different educational attainments of temporary emigrants have different effects on school enrollment. Specifically, the proportion of temporary emigrants with high school education positively affects middle school enrollment, while the proportion of temporary emigrants with middle school education negatively affects high school enrollment. Finally, we find that both permanent and temporary emigration has a detrimental effect on the economic growth of source regions.     

Women and economic development

This article relates some experiences of local authority interventions in Wolverhampton which have contributed to effective economic development work with women. The intention is to highlight approaches and actions which we believe need to be incorporated into local authority economic strategy in order to address women's needs. We also aim to identify certain limiting factors arising from the national context. The paper is based on work undertaken by the authors whilst working for Wolverhampton Council.     

Population and economic development

The traditional view has been that population growth has adverse effects on real per capita incomes. China's restrictive population policy appears to have been based on the traditional view. There is substantial evidence that contradicts the conclusion that population growth is adverse to economic growth. Most empirical analyses of the relationship between population and economic growth do not find that there is an adverse effect. The history of the world has been that periods of low population growth have been periods of low economic growth and that high rates of economic growth have occurred when population growth is also high. Most of human history has had low population and low economic growth. Only recently has there been both rapid population and economic growth.     

Urbanization and economic development

"This paper seeks to contribute to the discussion on the relationship between the levels of urbanization, levels of economic development and the pattern of economic activities." The focus is on the situation in developing countries, and the data are from published World Bank sources. Data on per capita income are used to stratify countries into development levels. The study includes data on centrally planned economies and on African countries.     

Black economic well-being since the 1950s

Conclusion Industrial cities like Cleveland and Pittsburgh that once offered manufacturing jobs as a route to economic advancement no longer provide an economic environment conducive to long-run gains in black incomes. Faced with massive losses in blue-collar manufacturing jobs in the 1970s and 1980s — as well as growing local government fiscal difficulties — these cities are changing rapidly in character. Administration and management are more and more the dynamic, expanding sector, and the resultant demands for workers have been concentrated in the white-collar fields. Highly educated blacks benefit from these trends in job availability; the less educated lose ground economically. The swing between widespread progress (as in World War II) and widespread regression in relative economic status (as in the 1930s) was the traditional cyclical fate of the overall urban black population. Today the smaller white-collar group prospers while the larger blue-collar urban black work force is undermined, except in periods of labor shortage.     

Job-centred economic development

Giloth, Robert P. (ed) 1998: JOBS AND ECONOMIC DEVELOPMENT: STRATEGIES AND PRACTICE. London: Sage, £14.99 paper, £31.00 cased.     

腐蚀成本与经济发展

我来自青岛市的中国科学院研究室,今天要给大家分享的内容是“腐蚀成本与经济发展”。腐蚀是我们每个人经常遇到的一个问题,也是一个牵扯到国计民生的大问题。下面,我代表研究院就腐蚀方面的研究工作给大家作一个简要的汇报。汇报内容主要分为两个方面:一是腐蚀与经济发展,二是腐蚀控制策略研究。