Speaker:Hui He（Senior Economist, Institute for Capacity Development, IMF,WashingtonDC, United States）
Description：This paper establishes a theory to explain why transition increases economic inequality. Workers in state-owned enterprises (SOE) face on average significantly lower idiosyncratic income shocks than their counterparts in private-owned enterprises (POE). Economic transition, resulting from a continuously reducing subsidy to SOE, pushes workers to move from SOE to POE. The transition in the labor market thus changes the composition of underlying income shock structure in the aggregate economy. This leads to rising income inequality and co-moving consumption inequality. We calibrate the model to the Chinese economy in transition and show that the model is able to capture the majority of rising economic inequality in urban China.
Time：Nov19, 2020（Thursday），20:30-22:00
Venue:Tencent meeting RoomID：307 892 562
