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Effects of Structural Change on Income Inequality

Objective

This project aims to identify the distributional effects of the structural change phenomenon. It develops a dynamic macroeconomic model that introduces heterogeneities across workers and asset owners into the structural change models. For this purpose, it will focus on growth models with heterogeneous agents and complete asset markets. With this methodology, we will be able to characterize not only the aggregate patterns of structural change, but also its distributional consequences. By uncovering the long term factors behind the evolution of income distribution during structural change, the proposed model will be highly relevant to the most recent debates of rising income inequality in developed countries. The theoretical model will be calibrated to assess and quantify the historical roots of the current distributional picture in U.S. and Europe. In doing so, it will determine the “structural” level of inequality; a level that is due to the intrinsic forces of structural change. Then any deviations -positive or negative- from this level can be identified as “political”, which would provide a clearer picture of the effects of governmental policies on inequality. This model will be the first in the literature to integrate structural models with distributional issues and will open up a new research area. Finally, the model will be enriched with fiscal policies such as income taxes and productive government spending in order to draw policy conclusions regarding the growth-income inequality relationship in Europe, where boosting economic growth while holding the income inequality at a socially acceptable level has been a major concern in recent years. Therefore, the proposed project will both contribute to advancement of European research and address one of the Societal Challenges targeted by H2020 programs, which is working towards “Inclusive, innovative and reflective societies”.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

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Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MSCA-IF-GF - Global Fellowships

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-MSCA-IF-2016

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Coordinator

BOGAZICI UNIVERSITESI
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 157 734,00
Address
BEBEK
34342 Istanbul
Türkiye

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Region
İstanbul İstanbul İstanbul
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 157 734,00

Partners (1)

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