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Demographic Transition, Family Structure, And Income Inequality

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  • C. Y. Cyrus Chu
  • Lily Jiang

Abstract

We treat each age-specific income-earning member of the family as an income "source," and use the source-specific Gini decomposition approach as well as the Lorenz comparison approach to study the impact of the changing population age structure on family income inequality. Empirical analysis using Taiwanese data shows that the pattern of Gini coefficients is significantly affected by the above-mentioned age composition factor. The general implication is that for many developing countries which have recently gone through rapid demographic transition, family income inequality indexed may implicitly embody information as to the age-specific composition of family members, which is irrelevant to the general notion of inequality. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • C. Y. Cyrus Chu & Lily Jiang, 1997. "Demographic Transition, Family Structure, And Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 665-669, November.
    • Handle: RePEc:tpr:restat:v:79:y:1997:i:4:p:665-669
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    Cited by:

    1. Wang, Xinxin & Chen, Kevin & Huang, Zuhui & Robinson, Sherman, 2013. "Demographic Transition and Income Distribution in China: CGE Modeling with Top-Down Micro-Simulation," Conference papers 332353, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Xinxin Wang & Kevin Z Chen, 2016. "Will China’s Demographic Transition Exacerbate Its Income Inequality? A CGE Modeling with Top-down Microsimulation," Working Papers id:11406, eSocialSciences.
    3. Jurgen Faik & Uwe Fachinger, 2013. "The decomposition of well-being categories: An application to Germany," Working Papers 307, ECINEQ, Society for the Study of Economic Inequality.
    4. Zhong, Hai, 2011. "The impact of population aging on income inequality in developing countries: Evidence from rural China," China Economic Review, Elsevier, vol. 22(1), pages 98-107, March.
    5. Jerônimo Muniz & Stanley R. Bailey, 2022. "Does race response shift impact racial inequality?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 47(30), pages 935-966.
    6. Hwang, Seokchae & Choe, Chung & Choi, Koangsung, 2021. "Population ageing and income inequality," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    7. Alexandre Gori Maia & Camila Sakamoto, 2016. "The Impacts Of Changing Family Structure On Income, Inequality And Poverty," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 219, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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