Publications

05 Sep 19

Decomposing Polarisation across developing countries: Case Study in China, India, and Indonesia.

Authors: ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa.

Online First: 03/09/2019

DOI: http://doi.org/10.1111/apel.12267

Abstract:

We investigate the contributions of various factors in the differences in polarisation across China, India, and Indonesia using microsimulation and decomposition methods. Using household expenditure from harmonised data from these countries, China was found to have the highest polarisation, while India has the lowest. Using India as the base country, the differences in the labour market structures in India and Indonesia have a slightly decreasing effect on polarisation. The effects of the differences in demographic composition and expenditure structures/parameters, however, are uncertain. Further, the differences in polarisation between China and Indonesia can be explained mostly by the differences in the expenditure structures. China’s expenditure structure tends to increase polarisation, as evidenced by the resulting reduction in the size of the middle class.

Reference: ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa. Decomposing Polarisation across developing countries: Case Study in China, India, and Indonesia. Asian-Pacific Economic Literature, 2019, vol. 33, n°2, pp. 44-61.

Keywords:
expenditure distribution,
polarisation,
microsimulation,
decomposition methpds

Project: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach

Linked publications
DECANCQ Koen, VAN KERM Philippe.
Emerald Publishing Limited, 2019, coll. Research on Economic Inequality vol. 27, 208 p.
ARIP Muttaqien, O'DONOGHUE Cathal, SOLOGON Denisa.
Research on Economic Inequality, 2019, vol. 27, pp. 55-68.
SOLOGON Denisa, ALMEIDA Vanda, VAN KERM Philippe
LISER, 2019, Working Papers n°2019-05, 52 p.