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Industrial employment and income inequality : Evidence from panel data

Mehic, Adrian LU (2018) In Structural Change and Economic Dynamics 45. p.84-93
Abstract

Over the last decades, the Western world has seen millions of relatively well-paid manufacturing jobs disappear. Some have shifted to low-income countries, while other have been permanently lost due the introduction of labor-saving technologies. Concurrently, many comparatively low-wage jobs have been created in services, for example in fast food and retailing. This paper uses a dynamic panel of 27 high and middle income countries from 1991 to 2014 to estimate the effects of declining industrial employment shares on income inequality. The analysis shows that industrial employment is significantly negatively associated with income inequality. Additionally, the results suggest that it is the middle-earners that have borne the largest... (More)

Over the last decades, the Western world has seen millions of relatively well-paid manufacturing jobs disappear. Some have shifted to low-income countries, while other have been permanently lost due the introduction of labor-saving technologies. Concurrently, many comparatively low-wage jobs have been created in services, for example in fast food and retailing. This paper uses a dynamic panel of 27 high and middle income countries from 1991 to 2014 to estimate the effects of declining industrial employment shares on income inequality. The analysis shows that industrial employment is significantly negatively associated with income inequality. Additionally, the results suggest that it is the middle-earners that have borne the largest burden in terms of inequality increases.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Deindustrialization, Income inequality, Job market polarization
in
Structural Change and Economic Dynamics
volume
45
pages
84 - 93
publisher
Elsevier
external identifiers
  • scopus:85042583814
ISSN
0954-349X
DOI
10.1016/j.strueco.2018.02.006
language
English
LU publication?
yes
id
146cab00-fbf1-4847-97de-8feb1187b694
date added to LUP
2018-03-15 15:43:20
date last changed
2021-10-06 05:51:02
@article{146cab00-fbf1-4847-97de-8feb1187b694,
  abstract     = {<p>Over the last decades, the Western world has seen millions of relatively well-paid manufacturing jobs disappear. Some have shifted to low-income countries, while other have been permanently lost due the introduction of labor-saving technologies. Concurrently, many comparatively low-wage jobs have been created in services, for example in fast food and retailing. This paper uses a dynamic panel of 27 high and middle income countries from 1991 to 2014 to estimate the effects of declining industrial employment shares on income inequality. The analysis shows that industrial employment is significantly negatively associated with income inequality. Additionally, the results suggest that it is the middle-earners that have borne the largest burden in terms of inequality increases.</p>},
  author       = {Mehic, Adrian},
  issn         = {0954-349X},
  language     = {eng},
  month        = {02},
  pages        = {84--93},
  publisher    = {Elsevier},
  series       = {Structural Change and Economic Dynamics},
  title        = {Industrial employment and income inequality : Evidence from panel data},
  url          = {http://dx.doi.org/10.1016/j.strueco.2018.02.006},
  doi          = {10.1016/j.strueco.2018.02.006},
  volume       = {45},
  year         = {2018},
}