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91. Is Corruption Really Bad for Inequality? Evidence from Latin America

Author:
Carlyn Dobson and Antonio Rodríguez Andrés
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper presents new evidence on the relationship between corruption and income inequality. Using a panel data methodology, we find that lower corruption is associated with higher income inequality in Latin America. This result is in contrast to other empirical studies but it makes sense in Latin America for a number of reasons. The finding of an inverse relationship between inequality and corruption suggests that institutional reform policies by themselves may be misguided.
Topic:
Corruption, Reform, and Income Inequality
Political Geography:
Latin America

92. Social Impacts of Climate Change in Brazil: A municipal level analysis of the effects of recent and future climate change on income, health and inequality

Author:
Lykke E. Andersen, Soraya Román, and Dorte Verner
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
The paper uses data from 5,507 municipalities in Brazil to estimate the relationships between climate and income as well as climate and health, and then uses the estimated relationships to gauge the effects of past and future climate change on income levels and life expectancy in each of these municipalities. The simulations indicate that climate change over the past 50 years has tended to cause an overall drop in incomes in Brazil of about four percent, with the initially poorer and hotter municipalities in the north and northeast Brazil suffering bigger losses than the initially richer and cooler municipalities in the south. The simulations thus suggest that climate change has contributed to an increase in inequality between Brazilian municipalities, as well as to an increase in poverty. The climate change projected for the next 50 years is estimated to have similar, but more pronounced effects, causing an overall reduction in incomes of about 12 percent, holding all other things constant. Again, the initially poorer municipalities in the already hot northern regions are likely to suffer more from additional warming than the initially richer and cooler municipalities in the south, indicating that projected future climate change would tend to contribute to increased poverty and income inequality in Brazil.
Topic:
Climate Change, Health, Income Inequality, and Social Impacts
Political Geography:
Brazil and South America

93. Infrastructure, Knowledge Creation and Spillovers and Economic Growth in China

Author:
Sangaralingam Ramesh
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The economic prosperity associated with the Coastal regions of China has not ‘trickled’ down to the Western and Central regions sufficiently enough to eliminate the disparities in income between the regions. Indeed, the disparities between China’s Coastal regions and its other regions continue to deepen to the present day. In the Mao period the Central planners held the mistaken belief that investment in the railways and development of heavy industry in the interior parts of China would bring prosperity. In the reform period and beyond, the focus of economic development in China has been to take advantage of China’s low labour costs. In the earlier part of the reform era the focus of economic reforms centred on the development of Special Economic Zones (SEZ’s) .In the second phase of reform policies were centred on the High Technology Development Zones [NHTIDZ’s].A characteristic feature of both SEZ’s and NHTIDZ’s is that they represent a concentration of infrastructure within a predefined spatial area. The framework of analysis in this paper is the New Economic Geography [NEG] .The NEG addresses the formation of agglomeration economies accruing to physical linkages in one location. However, the NEG does not address the issue of how agglomeration economies form due to knowledge creation linkages which are location independent. The main facet of this approach is that it will allow for a qualitative analysis of the spatial aspects of the infrastructural and knowledge creation factors affecting China’s economic growth. Previous approaches which have been used to study infrastructure and economic growth in China have been based on Econometric techniques. These approaches use measures such as length of railway, length of roads and telephone density, while in reality the concentration of infrastructure in the SEZ’s and NHTIDZ’s as significantly contributed to China’s post 1978 economic growth.
Topic:
Infrastructure, Income Inequality, and Economic Growth
Political Geography:
China and Asia

94. Income Inequality, Poverty and Social Spending in Japan

Author:
Randall S. Jones
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Income inequality and relative poverty among the working-age population in Japan have risen to levels above the OECD average. This trend is partially explained by labour market dualism, with an increasing proportion of non-regular workers who are paid significantly less than regular workers, as well as by other factors, including the ageing of the workforce. Social spending as a share of GDP has been expanding in the context of population ageing, although it remains below the OECD average and the proportion received by low-income households is small. Consequently, the impact of social spending on inequality and poverty is weak compared to other OECD countries and inadequate to offset the deterioration in market income. The scope for increasing social spending is constrained by the fiscal situation. Instead, reversing the upward trend in inequality and poverty requires reforms to reduce labour market dualism and better target social spending on low-income households, particularly single parents.
Topic:
Poverty, Income Inequality, Social Services, and Housing
Political Geography:
Japan and Asia

95. Improving Education Outcomes in the Slovak Republic

Author:
David Carey
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Improving education outcomes is vital for achieving convergence with GDP per capita levels in Western European countries and for reducing income inequality. While some education outcomes are favourable, such as the low secondary-school drop-out rate, others have room for improvement: education achievement is below the OECD average and strongly influenced by socio-economic background; Roma children, who are mainly from disadvantaged socio-economic backgrounds, have particularly poor achievement; labour-market outcomes are poor for graduates of secondary vocational programmes not leading to tertiary education; and tertiary attainment is low, albeit rising. Reforms have been made in recent years or are planned to address many of these weaknesses, but much remains to be done. In particular, more progress needs to be made in increasing participation in early childhood education and care, reducing stratification in the education system, helping Roma children to integrate into the education mainstream, and in attracting high quality graduates to teaching, especially in socio-economically disadvantaged schools. In addition, secondary vocational education not leading to tertiary education needs to be made more pertinent to labour-market requirements. Tertiary education also needs to be made more attractive for technical secondary school graduates.
Topic:
Education, Labor Issues, Income Inequality, and Socioeconomics
Political Geography:
Europe and Eastern Europe

96. Corruption, privatisation and the distribution of income in Latin America

Author:
Antonio Rodriguez and Carlyn Ramlogan
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper presents some new evidence on income inequality in Latin America over the period 1980-1999, examining in particular the relationship between corruption, privatisation and inequality. Using a panel data methodology, we find that a reduction in corruption is associated with a rise in inequality. This suggests that while privatisation removes industries from government influence and government corruption, it worsens income inequality as new owners strive for efficiency and profits. The paper highlights the fact that structural reform policies aimed primarily at achieving positive and increasing growth rates do not adequately address the income distribution problem.
Topic:
Corruption, Privatization, Income Inequality, and Data
Political Geography:
South America and Latin America