Social inclusion and structural transformation: Concepts, measurements and trade-offs
Arjan de Haan
#2015-045
Social exclusion has been a growing concern in the global North and
South alike. The causes of this have been the subject of much debate.
This paper discusses whether structural transformation - broadly defined
as the economic and technological changes that have a major impact on
societies' livelihoods - play a role in this. For this, the paper
explains what social inclusion is, how it is defined and measured, and
how thinking on the relationship between social inclusion and structural
transformation has evolved in the classic social science. The paper
warns against simplifying conclusions about the way structural
transformations impact social inclusion. With respect to the rising
inequalities of the last 20 years, also, the (limited) data suggest
mixed trends with respect to social inclusion. Insights from social
science analysis indicate that effects can be mediated, that
technologies are given meaning, and that societies create institutions
in response to structural changes that threaten cohesion or identity.
Key words: social inclusion, structural transformation, and industrialisation
JEL Classification: 033, 014, 015