Inflation and income inequality: A link through the job-search process


Autoria(s): Cysne, Rubens Penha
Data(s)

13/05/2008

13/05/2008

01/08/2004

Resumo

In this paper I devise a new channel by means of which the (empirically documented) positive correlation between ináation and income inequality can be understood. Available empirical evidence reveals that ináation increases wage dispersion. For this reason, the higher the ináation rate, the higher turns out to be the beneÖt, for a worker, of making additional draws from the distribution of wages, before deciding whether to accept or reject a job o§er. Assuming that some workers have less access to information (wage o§ers) than others, I show that the Gini coe¢ cient of income distribution turns out to be an increasing function of the wage dispersion and, consequently, of the rate of ináation. Two examples are provided to illustrate the mechanism.

Identificador

01048910

http://hdl.handle.net/10438/619

Idioma(s)

en_US

Publicador

Escola de Pós-Graduação em Economia da FGV

Relação

Ensaios Econômicos;557

Palavras-Chave #Economia #Renda - Distribuição #Inflação
Tipo

Working Paper