[Warning: this post is very-long and graphics-intensive]
We had an interesting debate going on in the comments to this post regarding inequality, but very specifically on racial inequality in Malaysia. I’d been meaning to post on the data underlying my arguments in that debate, so here it is even though a couple of months late.
It’s been a central pillar of public policy since 1970 to embed affirmative action in the economy along many dimensions, from education to corporate ownership to public procurement. What success any of these policies have had, has to be tempered with the inefficiencies caused by tampering with market forces. There’s certainly a case to be made on both sides of the fence, but much of these tend to descend into emotional and value laden arguments, and not really economic ones.