Citation

Discussion Paper Details

Please find the details for DP10297 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Life During Structural Transformation

Author(s): Jonathan Temple and Huikang Ying

Publication Date: December 2014

Keyword(s): inequality, Kuznets curve, Roy model and structural transformation

Programme Area(s): International Macroeconomics

Abstract: We examine whether structural transformation leads to a Kuznets curve. We present a dynamic general equilibrium model with heterogeneous workers, occupational self-selection and selective migration, and calibrate the model to survey data for Malawi. We show that structural transformation raises living standards unevenly. As development proceeds, the movement of workers from agriculture is associated with rising wage inequality, rather than a Kuznets curve. The increase in sectoral wage inequality is pronounced for agriculture. At the same time, structural transformation is associated with major reductions in rural poverty, and eventually in urban poverty.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10297

Bibliographic Reference

Temple, J and Ying, H. 2014. 'Life During Structural Transformation'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10297