Inequality in China revisited. The effect of functional distribution of income on urban top incomes, the urban-rural gap and the Gini index, 1978–2015

2017 ◽  
Vol 42 ◽  
pp. 101-117 ◽  
Author(s):  
Ricardo Molero-Simarro
Keyword(s):  
Gini Index ◽  
Top Incomes ◽  
Urban Rural ◽  
Functional Distribution ◽  
Distribution Of Income

Labor shares and inequality: insights from Italian economic history, 1895–19701

2020 ◽  
Author(s):  
Giacomo Gabbuti
Keyword(s):  
Income Distribution ◽  
Economic History ◽  
Italian History ◽  
The Past ◽  
Self Employment ◽  
Long Run ◽  
Short Run ◽  
Functional Distribution ◽  
Distribution Of Income

Abstract This article develops theoretical and practical motivations for studying the functional distribution of income in the past. Italy is adopted as a case study, because of the availability of long-run estimates on personal inequality and of the long-lasting incidence of self-employment. New labor shares for 1895–1970 show Italian workers accruing a low share of income until 1945; by the end of the 1950s, they rapidly converged to the European average. Italian history shows that functional income distribution deepens our understanding of long- and short-run distributional trends and makes a compelling case for approaching inequality by combining diverse sources and methodologies.

scholarly journals El empobrecimiento de los trabajadores como fuente de excedente en economías con débil dinámica productiva: Argentina desde mediados del siglo XX

2010 ◽  
pp. 231 ◽  
Author(s):  
Damián Kennedy ◽  
Juan M. Graña
Keyword(s):  
Working Class ◽  
Real Wage ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The Real ◽  
Economic Process ◽  
Functional Distribution ◽  
The 1950S ◽  
Siglo Xx ◽  
Distribution Of Income

Este trabajo se propone analizar el desempeño de la economía argentina desde mediados del siglo XX, recurriendo al análisis de la distribución funcional del ingreso y sus componentes –salario real y la productividad–, tanto para la economía agregada como para el sector industrial.<br />A partir de la comparación con un conjunto de países desarrollados (Estados Unidos, Francia, Italia, Japón y España), encontramos que dichas variables presentan desde mediados de la década del setenta una evolución particularmente llamativa: la productividad crece a un ritmo inferior –incluso con momentos de caída o estancamiento– y el salario real retrocede marcadamente.<br />En este marco, discutimos la explicación según la cual el empobrecimiento de los trabajadores argentinos es el resultado del proceso de desindustrialización sufrido –aunque sus indicadores se verifican con similar intensidad en aquellos países–, cambiando el eje hacia el débil desempeño de la productividad -y la consecuente ampliación de su brecha relativa–, que implica mayores costos para las empresas, que deben ser compensados con fuentes extraordinarias de ganancia. Una de ellas es, claro está, el salario real, de modo que el empobrecimiento de los trabajadores en Argentina resulta una pieza necesaria en el marco de la forma que adopta el proceso económico.<br /><br />This paper analyses the performance of the Argentine economy since the 1950s, through the analysis of the functional distribution of income and its components –real wage and productivity– for the economy and especially the manufacturing sector.<br />Through comparisons with a group of developed countries (France, Italy, Japan and Spain, USA), we find that those variables have a striking evolution: the productivity grows at an inferior rate –including periods of stagnation– and the real wage falls dramatically.<br />We then challenge the existing explanation of the impoverishment of the Argentine working class: the decline of our manufacturing sector. Since Argentinean indicators are no different than those of other countries, we emphasize the weak performance of the productivity –and the growth of the relative gap- that means higher costs for the firms, that must be compensated with extraordinary sources of profit. One of them is the real wage, and therefore the impoverishment of Argentine workers is a necessary piece of the economic process.<br />

scholarly journals Labour productivity, wages and the functional distribution of income in Portugal: A sectoral approach

2021 ◽  
Author(s):  
João Carlos Lopes ◽  
José Carlos Coelho ◽  
Vítor Escária
Keyword(s):  
Wage Inequality ◽  
Structural Changes ◽  
Labour Productivity ◽  
Value Added ◽  
Wage Share ◽  
Labour Share ◽  
Long Run ◽  
Sectoral Approach ◽  
Functional Distribution ◽  
Distribution Of Income

AbstractThe main purpose of this paper is to study the functional distribution of income in Portugal in the long run, considering the period between 1953 and 2017. The labour share in income or value added depends on two fundamental variables, labour productivity and the average labour compensation. The trends of these variables are quantified for the aggregate economy and for its main productive sectors. An interesting result emerges, namely the different dynamics across sectors, both for the (unadjusted) wage share (considering only the wages of employees) and for the adjusted labour share (considering also as labour compensation one fraction of mixed income). Moreover, a shift-share analysis is used, in order to distinguish the importance of each sector's wage share evolution (“within” effect) and the changes in each sector's weight (structural changes, or “between” effect). Finally, a first attempt to incorporate the effect of wage inequality on the functional distribution of income is made, subtracting the labour compensation of the highest paid workers (top 10%, 5% and 1%) in order to calculate the wage share of the (so-called) "typical" workers.

scholarly journals Growth and distribution: a revised classical model

2018 ◽  
Vol 38 (1) ◽  
pp. 3-27
Author(s):  
LUIZ CARLOS BRESSER-PEREIRA
Keyword(s):  
Technical Progress ◽  
Classical Model ◽  
History Of Capitalism ◽  
Long Run ◽  
History Of ◽  
Functional Distribution ◽  
The Uk ◽  
Rate Of Profit ◽  
Five Phases ◽  
Distribution Of Income

ABSTRACT This paper discusses distribution and the historical phases of capitalism. It assumes that technical progress and growth are taking place, and, given that, its question is on the functional distribution of income between labor and capital, having as reference classical theory of distribution and Marx’s falling tendency of the rate of profit. Based on the historical experience, it, first, inverts the model, making the rate of profit as the constant variable in the long run and the wage rate, as the residuum; second, it distinguishes three types of technical progress (capital-saving, neutral and capital-using) and applies it to the history of capitalism, having the UK and France as reference. Given these three types of technical progress, it distinguishes five phases of capitalist growth, where only the second is consistent with Marx prediction. In the final phase, corresponding to financier-rentier capitalism and neoliberalism, the profit rate recovered from the fall of the 1970s, while wages have been growing below the growth of productivity.

scholarly journals The rise, decline and rise of incomes policies in the US during the post-war era: an institutional-analytical explanation of inflation and the functional distribution of income

2007 ◽  
Vol 3 (2) ◽  
pp. 127-146 ◽  
Author(s):  
MARK SETTERFIELD
Keyword(s):  
Institutional Context ◽  
Macroeconomic Performance ◽  
Medium Term ◽  
The Past ◽  
Us Economy ◽  
The Us ◽  
Functional Distribution ◽  
Post War ◽  
Distribution Of Income ◽  
Discrete Medium

Abstract:This paper is based on the premise that at any point in time, macroeconomic performance is best understood in terms of certain ‘fundamental’ features of the income-generating process that are embedded in a relatively enduring institutional framework, that both affects and is affected by macroeconomic outcomes themselves. This results in the evolution of capitalist economies through a succession of discrete, medium-term episodes of macroeconomic performance. The purpose of the paper is to apply this vision to the explanation of inflation and the functional distribution of income in the post-war US economy. A conflicting claims model of inflation is developed, in which inflation is the result of conflict over the functional distribution of income. It is then shown how an account of the different, relatively enduring institutions within which this ‘fundamental’ macroeconomic process has been embedded over the past 50 years can be used to calibrate the analytical model, giving rise to an explanation of inflation and the functional distribution of income in the US as having evolved through three discrete episodes. Moreover, once the institutional context of macroeconomic performance is properly recognized in this manner, inflation and the functional distribution of income in the US over the past 50 years are seen to be explained by the rise, decline, and rise of successive incomes policies.

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