Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in Oecd Countries? : Some Empirical Evidence /

Income distribution may be related to fundamentals affecting economic growth and to labor market policies. Noting that inequality is affected by unemployment. This paper presents a model in which labor market policies affect unemployment which in turn affects inequality. The model also includes the...

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Bibliografiske detaljer
Hovedforfatter: Van Houdt, Patrick
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1997.
Serier:IMF Working Papers; Working Paper ; No. 1997/003
Online adgang:Full text available on IMF
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Summary:Income distribution may be related to fundamentals affecting economic growth and to labor market policies. Noting that inequality is affected by unemployment. This paper presents a model in which labor market policies affect unemployment which in turn affects inequality. The model also includes the effects of changes in per capita income on inequality through the accumulation of physical capital and technological know-how. When a resulting reduced-form relationship is estimated, its explanatory power is surprisingly high: on average, it explains about three quarters of the variation in inequality measures for the OECD countries, and Granger Causality tests confirm the model's predictions.
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Fysisk beskrivelse:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students