On the positive correlation between income inequality and unemployment
Autor(a) principal: | |
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Data de Publicação: | 2004 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/388 |
Resumo: | Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under uncertainty. I start by proving the uniqueness of a stationary distribution of wages in the economy. Drawing upon this distribution, I provide a general expression for the Gini coefficient of income inequality. The expression has the advantage of not requiring a particular specification of the distribution of wage offers. Next, I show how the Gini coefficient varies as a function of the parameters of the model, and how it can be expected to be positively correlated with the rate of unemployment. Two examples are offered. The first, of a technical nature, to show that the convergence of the measures implied by the underlying Markov process can fail in some cases. The second, to provide a quantitative assessment of the model and of the mechanism linking unemployment and inequality. |
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Cysne, Rubens PenhaEscolas::EPGEFGV2008-05-13T15:23:20Z2008-05-13T15:23:20Z2004-08-010104-8910http://hdl.handle.net/10438/388Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under uncertainty. I start by proving the uniqueness of a stationary distribution of wages in the economy. Drawing upon this distribution, I provide a general expression for the Gini coefficient of income inequality. The expression has the advantage of not requiring a particular specification of the distribution of wage offers. Next, I show how the Gini coefficient varies as a function of the parameters of the model, and how it can be expected to be positively correlated with the rate of unemployment. Two examples are offered. The first, of a technical nature, to show that the convergence of the measures implied by the underlying Markov process can fail in some cases. The second, to provide a quantitative assessment of the model and of the mechanism linking unemployment and inequality.engFundação Getulio Vargas. Escola de Pós-graduação em EconomiaEnsaios Econômicos;561On the positive correlation between income inequality and unemploymentinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaEconomiaRenda - DistribuiçãoDesempregoreponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL1692.pdfapplication/pdf232607https://repositorio.fgv.br/bitstreams/e5fa70d0-ee93-47a1-a9a6-89195deee209/download954b4170bcc7aa33b8d8eca2f4ea073eMD51TEXT1692.pdf.txt1692.pdf.txtExtracted texttext/plain30385https://repositorio.fgv.br/bitstreams/adbb91d5-8de9-4c9f-852e-044343d86a2a/download7c229d4f30605872f42eaf75999572b6MD56THUMBNAIL1692.pdf.jpg1692.pdf.jpgGenerated Thumbnailimage/jpeg3247https://repositorio.fgv.br/bitstreams/9e1e313d-fc89-41d9-9fce-22e2c8741180/downloadda3368f241405c4f18ca17dc0ce7cdf9MD5710438/3882023-11-09 16:07:10.325open.accessoai:repositorio.fgv.br:10438/388https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T16:07:10Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
On the positive correlation between income inequality and unemployment |
title |
On the positive correlation between income inequality and unemployment |
spellingShingle |
On the positive correlation between income inequality and unemployment Cysne, Rubens Penha Economia Economia Renda - Distribuição Desemprego |
title_short |
On the positive correlation between income inequality and unemployment |
title_full |
On the positive correlation between income inequality and unemployment |
title_fullStr |
On the positive correlation between income inequality and unemployment |
title_full_unstemmed |
On the positive correlation between income inequality and unemployment |
title_sort |
On the positive correlation between income inequality and unemployment |
author |
Cysne, Rubens Penha |
author_facet |
Cysne, Rubens Penha |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Cysne, Rubens Penha |
dc.subject.area.por.fl_str_mv |
Economia |
topic |
Economia Economia Renda - Distribuição Desemprego |
dc.subject.bibliodata.por.fl_str_mv |
Economia Renda - Distribuição Desemprego |
description |
Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under uncertainty. I start by proving the uniqueness of a stationary distribution of wages in the economy. Drawing upon this distribution, I provide a general expression for the Gini coefficient of income inequality. The expression has the advantage of not requiring a particular specification of the distribution of wage offers. Next, I show how the Gini coefficient varies as a function of the parameters of the model, and how it can be expected to be positively correlated with the rate of unemployment. Two examples are offered. The first, of a technical nature, to show that the convergence of the measures implied by the underlying Markov process can fail in some cases. The second, to provide a quantitative assessment of the model and of the mechanism linking unemployment and inequality. |
publishDate |
2004 |
dc.date.issued.fl_str_mv |
2004-08-01 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:23:20Z |
dc.date.available.fl_str_mv |
2008-05-13T15:23:20Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/388 |
dc.identifier.issn.none.fl_str_mv |
0104-8910 |
identifier_str_mv |
0104-8910 |
url |
http://hdl.handle.net/10438/388 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.ispartofseries.por.fl_str_mv |
Ensaios Econômicos;561 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Fundação Getulio Vargas. Escola de Pós-graduação em Economia |
publisher.none.fl_str_mv |
Fundação Getulio Vargas. Escola de Pós-graduação em Economia |
dc.source.none.fl_str_mv |
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