Economics, Econometrics and Finance
4 years ago

Argentinian economy shift leads to decrease in earnings inequality

SSRN Electronic Journal
The Evolution of the Earnings Distribution in a Volatile Economy: Evidence from Argentina
Julio Blanco, Bernardo Díaz de Astarloa, Andrés Drenik, Christian Moser, Danilo Trupkin

Paper Summary

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The article examines how earnings inequality changed in Argentina from 1996 to 2015. After a major economic crisis, the country shifted to high inflation. This led to more stable earnings and fluctuations in how much people's earnings changed over time. The researchers found that as inflation increased, wages were adjusted more frequently, and the distribution of wage changes shifted from being mostly small to more evenly spread out.