Previous studies find that IMF programs have negative effects on income distribution [The International Monetary Fund and Latin America: Economic Stabilization and Class Conflict, Westview Press, Boulder, 1987a; World Dev. 15 (1987b) 365; World Dev. 28 (2000) 1031]. No study, however, has used parametric methods to control for nonrandom selection. Using a dynamic version of the Heckman selection model, I study the effect of IMF programs on the labor share of income from manufacturing. My conclusions are supported by 2,095 observations of 110 countries during 1961-93.
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Sociology and Political Science
- Economics and Econometrics
- Income distribution
- International monetary fund
- Nonrandom selection