Do economic recessions cause inequality to rise?
We use a local projection approach to analyze the effect of economic recessions on income inequality in a comprehensive sample of 43 countries from 1960 to 2016. Although we consider both business-cycle and growth-cycle recessions, we fail to find evidence of significant positive impacts of economic...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2019-01-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/15140326.2019.1620982 |
| Summary: | We use a local projection approach to analyze the effect of economic recessions on income inequality in a comprehensive sample of 43 countries from 1960 to 2016. Although we consider both business-cycle and growth-cycle recessions, we fail to find evidence of significant positive impacts of economic downturns on income distribution, once controls are added to the model. However, we do find important differences across countries, which mainly depend on the degree of economic development. |
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| ISSN: | 1514-0326 1667-6726 |