The effect of service sector growth on income inequality and what is the solution of it in OECD countries

Title
The effect of service sector growth on income inequality and what is the solution of it in OECD countries
Authors
HWANG, Jee Hui
Issue Date
2013
Publisher
KDI School of public policy and management
Abstract
This paper intends to study the relationship between service sector's growth and income inequality for 34 OECD countries during the period from 1974 to 2011. From our analysis, we find evidence that the growth in service sector in terms of employment is negatively related to income equality. However, we also find that the growth in service sector in terms of value added is positively related to income equality. Also, we find that both the labor productivity of service sector compared to manufacturing sector and labor compensation of service sector compared to manufacturing sector are positively related to income equality. Overall, our analysis suggests that the advance in service sector is not necessarily related to deterioration in income inequality. If the labor productivity and compensation in service sector are high enough, the growth in service sector may lead to more equal distribution of income. We can confirm the above findings for both more marketoriented economies (liberal market economies) and less market-oriented economies (coordinated market economies).
URI
http://archives.kdischool.ac.kr/handle/11125/12283
Files in This Item:
Appears in Collections:
Master's Thesis (2013)


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.