nach oben

Social Indicators Research

Erschienen in:

01.07.2015

Population Aging and Regional Income Inequality in Taiwan: A Spatial Dimension

verfasst von: Chun-Hung A. Lin, Suchandra Lahiri, Ching-Po Hsu

Erschienen in: Social Indicators Research | Ausgabe 3/2015

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

In the backdrop of a spatial effect, this paper reconsiders the importance of life cycle in explaining the evolution of regional household income inequality in Taiwan. For the empirical period examined (1998–2006), a fixed effect panel data analysis reveals a high level of spatial clustering across 22 regions of Taiwan. When we control for spatial dependence we observe a positive relation between aging and income inequality. This regional inequality is explained by a decline in the multigenerational families followed by a rise in the elderly households with no additional income. Further, the level of inequality in income distribution of own province is positively and significantly determined by inequality in the neighboring province. To investigate further the process of regional development in Taiwan, we analyze the convergence–divergence dynamics employing spatial econometric methods. We observe both absolute and conditional beta divergence. The result points to the famous catching up or falling behind phenomenon. Failure to account for such spatial effect may cause biased results and incorrect policy implications.

Vorheriger Artikel Virtues, Practical Wisdom and Psychological Well-Being: A Christian Perspective

Nächster Artikel The Socially Excluded in the Netherlands: The Development of an Overall Index

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

(1) After accounting for taxes and transfers, the US has the second-highest level of inequality, after Chile. (2) Divided we stand: why inequality keeps rising, OECD report (2011). (3) http://www.gini-research.org.

Jörg Lackenbauer (2004) in case of Hungary, identify the factors behind catching-up within some regions (‘winner regions’) and falling-behind in others (‘loser regions’).

Kuznets (1989) gave several reasons for the use of family or household as the unit of measurement. We use Gini coefficient to capture the inequality in the distribution of household income.

Result for the RE model and Hausmann test are available upon request.

α’ captures the unobserved regional level heterogeneity. For example, the socio-economic status of a particular community like Taipei where ‘sophisticated urbanities’ might induce people to maintain a lower fertility rate. Hence, one would wonder aging to have an upward rising curve, specifically for a city like Taipei.

For more details on this issue please see Cliff and Ord (1973).

The term ‘conditional’ convergence is used by Mankiw et al. (1992), who argue that the Solow model predicts convergence among countries only after controlling for the determinants of each country’s steady state.

Baumol (1986) has estimated a growth equation to test for β-convergence in the historical data (1870–1879) of per capita output for 16 industrialized countries.

Cross-regional data are spatial data. Spatial data are characterized by dependence (spatial autocorrelation) and heterogeneity (spatial heterogeneity) (Anselin 1988).

Fent et al. (2008) suggest that individual productivity decreases with age due to declining cognitive abilities.

Economic downturn after the Asian financial crisis, trade liberalization and democratic transition were among the most influential shocks.

Examples include the division: rich North-poor South (and West-East since 2004) within the EU or the core-periphery result of the New economic geography.

The core periphery model was first originated by Friedmann (1966) to explain regional uneven development.

Allison, P. D. (1978). Measures of inequality. American Sociological Review, 43, 865–880.CrossRef

Anselin, L. (1988). Spatial econometrics: Methods and models. Dordrecht: Kluwert Academic.CrossRef

Baltagi, B. H. (2001). Econometric analysis of panel data (2nd ed.). New Work: John Wiley and Sons.

Barro, R. J. (2000). Inequality and growth in a panel of countries. Journal of Economic Growth, 5, 5–32.CrossRef

Barro, R. J., & Sala-i-Martin, X. (1992). Convergence. Journal of Political Economy, 100, 223–251.CrossRef

Baumol, W. (1986). Productivity growth, convergence and welfare. American Economic Review, 76, 1072–1085.

Baumont, B., Ertur, C., & Le Gallo, J. (2003). Spatial convergence clubs and the european regional growth process, 1980–1995. In B. Fingleton (Ed.), European regional growth (pp. 131–158). Berlin: Springer.CrossRef

Bräuninger, M., Niebuhr, A. (2005) Convergence, spatial interaction and agglomeration effects in the EU. ERSA conference papers ersa05p528, European Regional Science Association.

Carlino, G., & Leonard, M. (1996). Convergence and the U.S. States. Journal of Regional Science, 36(4), 597–616.CrossRef

China Post. (2008). M-shape society trend getting worse, DGBAS. Cambridge: MIT Press.

Chu, C., Cyrus, Y., & Lily, J. (1997). Demographic transition, family structure, and income inequality. Review of Economics and Statistics, 79(4), 665–669.CrossRef

Cliff, A. D., & Ord, J. K. (1973). Spatial autocorrelation. London: Pion.

Deaton, A. S., & Paxson, C. H. (1994). Intertemporal choice and inequality. Journal of Political Economy, 102(3), 437–467.CrossRef

Deaton, A. S., & Paxson, C. H. (1997). The effects of economic and population growth on national saving and inequality. Demography, 34(1), 97–114.CrossRef

Dunford, M., & Smith, A. (2000). Catching up or falling behind? Economic performance and regional trajectories in the New Europe. Economic Geography, 76(2), 169–195.CrossRef

Fent, T., Mahlberg, B., and Prskawetz, A. (2008). Demographic change and economic growth. In Business opportunities in an era of demographic change, chapter 1 (pp. 3–16). Springer, Berlin.

Friedmann, J. (1966). Regional development policy: A case study of Venezuela. Cambridge: MIT Press.

Galbraith, J. K. (2012). Inequality and instability. Oxford: Oxford University Press.CrossRef

Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46, 1251–1271.CrossRef

Henley, A. (2005). On regional growth convergence in Great Britain. Regional Studies, 39, 1245–1260.CrossRef

Hering, L., & Poncet, S. (2010). Market access and individual wages: Evidence from China. Review of Economics and Statistics, 92(1), 145–159.CrossRef

Hsu, J.-Y. (2009). The spatial encounter between neoliberalism and populism in Taiwan: Regional restricting under the DPP regime in the new millennium. Political Geography, 28, 296–308.CrossRef

Kim, S., (2008) Spatial inequality and economic development: Theories, facts, and policies, Commission on Growth and Development.

Knight, J. B., & Sabot, R. H. (1983). Educational expansion and the Kuznets effect. The American Economic Review, 73, 1132–1136.

Krugman, P. (1991). In geography and trade. London: MIT Press.

Kuznets, S. (1989). Economic development, the family, and income distribution. New York: Cambridge University Press.CrossRef

Lee, S., and Mason, A. (2001) Aging, family transfers, and income inequality. University of Hawaii Department of Economics Seminar Paper.

Liu, Y. C., & Chang, C. H. (1987). The impact of wives’ earnings on family income inequality: The case of Taiwan. Economic Essays, 15, 509–533.

Maddison, A. (2007). Contours of the world economy, 1–2003. New York: Oxford University Press.

Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107, 407–437.CrossRef

Mocan, H. N. (1999). Structural unemployment, cyclical unemployment, and income inequality. Review of Economics and Statistics, 81, 122–134.CrossRef

Paci, R., Pigliaru, F. (2001). Technological diffusion, spatial spillovers and regional convergence in Europe. Working Paper Series, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

Paglin, M. (1975). The measurement and trend of inequality: A basic revision. American Economic Review, 65(3), 520–531.

Petrakos, G., & Topaloglou, L. (2005). Tracing the new economic geography of the borders in Europe. Amsterdam, The Netherlands: 45th congress of the European Regional Association.

Pong, S. (1991). The effect of women’s labor on family income inequality: The case of Hong Kong. Economic Development and Cultural Change, 40(1), 131–152.CrossRef

Puga, D. (2002). European regional policies in light of recent location theories. Journal of Economic Geography, 2(4), 372–406.CrossRef

Reardon, S. F., Matthews, S. A., O’Sullivan, D., Lee, B. A., Firebaugh, G., Farrell, C. R., et al. (2008). The geographic scale of metropolitan racial segregation. Demography, 45, 489–514.CrossRef

Rey, S. J., & Janikas, M. V. (2005). Regional convergence, inequality, and space. Journal of Economic Geography, 5(2), 155–176.CrossRef

Rey, S. J., & Le Gallo, J. (2009). Spatial analysis of economic convergence. In T. C. Mills & K. Patterson (Eds.), Palgrave handbook of econometrics volume II: Applied econometrics. Basingstoke: Palgrave Macmillan.

Rey, S. J., & Mountouri, B. D. (1999). U.S regional income convergence: A spatial econometric perspective. Regional Studies, 33(1), 143–156.CrossRef

Schultz, T. P. (1997). Income Inequality in Taiwan 1976–1995: Changing family composition, aging and female labor force participation. Yale Economic Growth Center Discussion Paper, 778, 56.

Smeeding, T. (2001) Income maintanence in old age. What can be learned from cross-national comparison LIS Working Paper Series No. 263.

Weizsacker, V. (1995). Public pension reorm, demographics, and inequality. Journal of Population Economics, 8, 205–221.CrossRef

Wu, K. (2005). How social security keeps older persons out of poverty across developed countries. Luxembourg Income Study, Working Paper no. 410.

Zhong, H. (2011). Impact of population aging on income inequality in developing countries: Evidence from rural China. China Economic Review, 22, 98–107.CrossRef

Titel: Population Aging and Regional Income Inequality in Taiwan: A Spatial Dimension
verfasst von: Chun-Hung A. Lin
Suchandra Lahiri
Ching-Po Hsu
Publikationsdatum: 01.07.2015
Verlag: Springer Netherlands
Erschienen in: Social Indicators Research / Ausgabe 3/2015
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-014-0713-8

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2015

Potential and Effective Support Networks of Young Italian Adults

Family Support and Subjective Well-Being: An Exploratory Study of University Students in Southern Chile

Disability, Training and Job Satisfaction

The Socially Excluded in the Netherlands: The Development of an Overall Index

A Multi-indicator Approach for Smart Security Policy Making

Demographic Change and Catastrophic Health Expenditure in India

Premium Partner