Arbeitspapier

Examining the Impact of Macro-Economic Conditions on Income Inequality

This paper proposes a new approach for analyzing the relationship between macroeconomic factors and the income distribution. The conventional method of analysis is regression of summary inequality indices on variables such as the unemployment and inflation rates. Building on the lessons from recent advances in time-series econometrics, we suggest instead that one should first fit a parametric functional form to the income distribution for each year, and then model the time series of model parameters in terms of the macroeconomic factors. Inferences about the relationship between the income distribution and macroeconomic factors can be derived from the model estimates. We apply these methods to data from the United Kingdom for 1961-91, and contrast the results with those found using earlier methods.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 364

Klassifikation
Wirtschaft
Model Construction and Estimation
Personal Income, Wealth, and Their Distributions
Thema
Income inequality
macro-economic conditions
unemployment
inflation
Singh-Maddala distribution
Einkommensverteilung
Makroökonomischer Einfluß
Arbeitslosigkeit
Inflation
Zeitreihenanalyse
Schätzung
Theorie
Großbritannien
Singh-Maddala distribution

Ereignis
Geistige Schöpfung
(wer)
Jäntti, Markus
Jenkins, Stephen P.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2001

Handle
Letzte Aktualisierung
12.07.2024, 13:22 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

  • Jäntti, Markus
  • Jenkins, Stephen P.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2001

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