Theoretical Reshaping for the Augmented Inequality Dynamics

In: S.J. Baek, ed. The Political Economy of Neo-Modernisation: Rethinking the Dynamics of Technology, Development and Inequality. London: Palgrave Macmillan, 2018, pp.119-156

Posted: 22 Sep 2018

Date Written: July 24, 2018

Abstract

This chapter examines whether rising income inequality is the stylised fact for the process of structural transformation by revisiting classical accounts on various theories of normative inequality dynamics, modernisation, and endogenous growth. In addition, a complex interaction between transformational process and income inequality is analysed by exploring the multidimensions of inequality dynamics, including social, economic, political, and moral. This critical review allows us to conclude that rising income inequality is far from inevitable by introducing a proposal for what it calls Augmented Inequality Dynamics which attempts to systematise the endogenous process within a society, underpinned by these multidimensional aspects. Once the inequality dynamics are formed as historically driven systems of social, economic, and political relations that frame the regulation and coordination mechanism that governs a society, the dynamics can be so evolutionary in a way that they structurally transform themselves by interacting with various dimensions and institutions to shape their own pathway. This explains how income inequality is used to incentivise or restrain the process of various societal interactions by itself going Up and Down repeatedly in the context of structural transformation.

Keywords: Income Inequality, Rawls’s Difference Principle, Structural Transformation, Kuznets Curve, Modernisation Theory, Diffusion of Information and Technology

Suggested Citation

Baek, Seung Jin, Theoretical Reshaping for the Augmented Inequality Dynamics (July 24, 2018). In: S.J. Baek, ed. The Political Economy of Neo-Modernisation: Rethinking the Dynamics of Technology, Development and Inequality. London: Palgrave Macmillan, 2018, pp.119-156, Available at SSRN: https://ssrn.com/abstract=3241381

Seung Jin Baek (Contact Author)

United Nations ( email )

Kuwait

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
108
PlumX Metrics