Decomposing polarisation across developing countries: case study of China, India, and Indonesia

Arip Muttaqien, Cathal O'Donoghue, Denisa Sologon

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Résumé

We investigate the contributions of various factors in the differences in polarisation across China, India, and Indonesia using micro-simulation 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.
langue originaleAnglais
Pages (de - à)44-61
Nombre de pages18
journalAsian-Pacific Economic Literature
Volume33
Numéro de publication2
Date de mise en ligne précoce3 sept. 2019
Les DOIs
étatPublié - 1 nov. 2019

Une note bibliographique

doi: 10.1111/apel.12267

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