Population Growth, Income Distribution, and Economic Development

1 Introduction.- 1.1 Purpose of the study.- 1.2 Previous research on the subject.- 1.3 Approach of the present study.- 1.4 Outline of the study.- 1.5 Composition of the sample.- 1.6 Data and data quality.- I: Methodological Issues.- 2 Inequality measures in macro-analyses.- 2.1 Introduction.- 2.2 Aggregation of nonlinear micro-relationships and measures of inequality.- 2.2.1 Introduction.- 2.2.2 Alternative formulations of the nonlinearity bias.- 2.2.3 The nonlinearity bias and basic properties of inequality measures.- 2.2.4 The nonlinearity bias and auxiliary properties of inequality measures.- 2.2.5 The nonlinearity bias for the logarithmic function.- 2.2.6 Aggregation of ratios.- 2.2.7 Summary and conclusions.- 2.3 Application to income distributions.- 2.3.1 Introduction.- 2.3.2 Relationship of the nonlinearity bias to social welfare functions.- 2.3.3 Estimation from grouped data: I.- 2.3.4 Estimation from grouped data: II.- 2.3.5 Summary.- 2.4 Conclusion.- 3 Cross-national regression analysis.- 3.1 Introduction.- 3.2 Interpretation of the estimates.- 3.2.1 Introduction.- 3.2.2 Impact of omitted lagged variables.- 3.2.3 Impact of the omission of other explanatory variables.- 3.2.4 Summary and conclusions.- 3.3 Econometric problems.- 3.3.1 Introduction.- 3.3.2 Heteroscedasticity.- 3.3.3 Multicollinearity.- 3.3.4 Errors in the variables.- 3.3.5 Summary.- 3.4 Conclusion.- II: Partial Studies.- 4 Fertility.- 4.1 Introduction.- 4.2 Review of the literature on the impact of income inequality.- 4.3 Impact of household income on fertility.- 4.3.1 Proximate determinants of fertility.- 4.3.2 Easterlin’s synthesis framework.- 4.3.3 Direct impact of income on intervening variables.- 4.3.4 Indirect impact of income on intervening variables.- 4.3.5 Shape of the income-fertility relationship.- 4.3.6 Conclusions.- 4.4 Macro-level evidence on the shape of the income-fertility relationship.- 4.5 Regression results.- 4.6 Summary.- 5 Mortality.- 5.1 Introduction.- 5.2 Review of the literature on the impact of income inequality.- 5.3 Impact of household income on mortality.- 5.3.1 Causes of death and proximate determinants of mortality.- 5.3.2 Impact of household income on proximate determinants.- 5.3.3 Shape of the income-mortality relationship.- 5.3.4 Conclusions.- 5.4 Macro-level evidence on the shape of the income-mortality relationship.- 5.5 Regression results.- 5.6 Summary.- 6 Age structure of the population.- 6.1 Introduction.- 6.2 Demographic relationships in cross-national regression analyses.- 6.3 Long-term impact of fertility and mortality on the age structure.- 6.4 Regression results.- 6.5 Summary and conclusions.- 7 Income (in)equality.- 7.1 Introduction.- 7.2 Review of the literature on demographic determinants.- 7.3 Equality of personal incomes.- 7.3.1 Age-income profiles.- 7.3.2 Age and the equality of personal incomes.- 7.3.3 Numerical assesments of the age effect.- 7.3.4 Gender and the equality of personal incomes.- 7.3.5 Conclusions.- 7.4 Equality of household incomes.- 7.4.1 Household size and the equality of household incomes.- 7.4.2 Numerical assesments of the household size effect.- 7.4.3 Age and gender and the equality of household incomes.- 7.4.4 Conclusions.- 7.5 Regression results.- 7.6 Summary.- 8 Total income.- 8.1 Introduction.- 8.2 Properties of the Cobb-Douglas production function.- 8.3 Some non-conventional sources of growth.- 8.4 Regression results.- 8.5 Summary.- 9 Basic needs fulfilment.- 9.1 Introduction.- 9.2 Review of the literature on the impact of income inequality.- 9.3 Impact of household income on basic needs fulfilment.- 9.4 Regression results.- 9.5 Summary.- 10 Labour force participation.- 10.1 Introduction.- 10.2 Impact of income (in)equality.- 10.2.1 Review of the literature.- 10.2.2 Impact of household income on labour force participation.- 10.2.3 Macro-level evidence on the shape of the income-labour force participation relationship.- 10.2.4 Conclusion.- 10.3 Impact of population age and sex structure.- 10.4 Regression results.- 10.5 Summary.- 11 Consumption and saving.- 11.1 Introduction.- 11.2 Impact of income (in)equality.- 11.2.1 Impact of household income on consumption.- 11.2.2 Implications for relationship betweeen income equality and consumption.- 11.2.3 Review of empirical studies.- 11.3 Impact of population age and sex structure.- 11.3.1 Savings and the dependency ratio.- 11.3.2 Consumption and equivalence scales.- 11.3.3 An Integration.- 11.4 Regression results.- 11.5 Summary.- 12 Other dependent variables in the model.- 12.1 Introduction.- 12.2 Inequality of land holdings.- 12.3 Average household size.- 12.4 Share of labour force in agriculture.- 12.5 Population per physician.- 12.6 Summary.- III: The Simultaneous-Equations Model.- 13 Model specification and regression results.- 13.1 Introduction.- 13.2 Specification of the model.- 13.2.1 Structural equations.- 13.2.2 Identities.- 13.2.3 Properties of the model.- 13.3 Regression results.- 13.4 Conclusion.- 14 Summary.- Appendix A: Data sources.- Appendix B: The entire model.