Poverty and inequality in Java']Java: examining the impact of the changing age, educational and industrial structure

This paper uses the method of DiNardo et al. [DiNardo, J., Fortin, N.M., Lemieux, T., 1996. Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach, Econometrica, 64 (5), Sept, 1001-1044.] to examine the distribution of the benefits of growth in Java. DiNardo et al.'s method presents the decompositions visually rather than in the form of opaque summary statistics. In this paper, it was modified so that changes in the cumulative distribution functions, Lorenz curves and generalized Lorenz curves are decomposed. The change in the distribution of per capita income between 1984 and 1990 is related to the aging of the population, decreased reliance on agriculture, increased educational attainment and changes in incomes within industry and age/education categories. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: O15; I30.