Income ineqialiy and micro (1 Viewer)

[d_a_n_z]

Okay, heres my current thinking (please critisise where wrong)
I know that micro reforms indirectly create income inequality, as those with higher levels of training/skills are paid more, as they are able to be more productive and efficient yadadadad..
Can it still be said taht micropolicies were implemented to reduce income inequality, because by forcing human capital to work more efficiently, they create a higher incentive for employers to hire people, which then reduces unemployment (which is the biggest creator of poverty and inequality?)

Does that make sense?

 

[sunjet]

In some cases it increases unemployment, not only in the short term.

 

[sk8ie_boi]

I dunno, but I think .. micro reform will result in a increase in unemployment in the short run as the techology and efficiency takes away the jobs of workers. But in the long run, as these workers gain new skills.. and eventually decreasing unemployement.. but this is in theory, in real life.. I guess people are too lazy to gain new skillz..

 

[khoshgelleh]

i mean mirco reform such as labour market reform , as u said before provide an incentive for workers.... thus in a sense it becomes up to them to work better to get increases pay

Although it disadvatages some workers in the economy such as the lower levels one, who because of language, education, race or whatever barriers are unable to recive rasier so it does result in the widening of the gap...
But the thing u have to remeber is that one event is never in isolation when talking about economics everything links--> so u could argue both ways.

For example mirco reform lead to higher living standards becasue blha bklha bkha ...
but by the same token if ....... happens it could result in.............

get what i mean??

sorry i dnt no if that helped

 

[SPYKE_JOE]

short term, increase structural unemployment, with labour cost saving technology.
long term, eco growth will occur with this increase in productivity, which will offset the initial rise in unemployment. take that however way you choose

 

[Jexi]

Microeconomic reform is aimed to achieve efficiency. With things such as labour market reforms, it aims to provide incentives for labor to move to efficient areas. During this process there is bound to be structural and frictional unemployment. And if you look at history, we've gone less equal. So I don't think Structural change and equality comes hand in hand but you could argue otherwise

 

[biscuit]

And if you look at history, we've gone less equal.

I'd be careful, recent stats have shown that the Gini-coefficient has decreased in 03-04; however the new IR reform will probably increase income inequality

Refer to ABS; "Household Income and Income Distribution"; its from one of the Leading Edge updates, mabye its online somewhere

 

[sk8ie_boi]

I'd be careful, recent stats have shown that the Gini-coefficient has decreased in 03-04; however the new IR reform will probably increase income inequality

Refer to ABS; "Household Income and Income Distribution"; its from one of the Leading Edge updates, mabye its online somewhere

is the recent gini coefficient around 0.3-0.4??

 

[Jago]

0.311 for income and 0.64 for wealth

 

[sk8ie_boi]

0.311 for income and 0.64 for wealth

okay thank u .. where do u get dis data from? .. also .. do u know the gini coefficient for china??