In this paper we analyse the effect of macroeconomic conditions on wage inequality in Italy over time. A conditional Dagum model is proposed in order to incorporate the macroeconomic conditions into the model parameters. We explore the effect of macroeconomic variables by simulating counterfactual densities conditional on different macroeconomic scenarios and quantitative implications are then derived through the comparison of summary inequality measures. Both unemployment and inflation have been found to play some role for the structural shifts in the real wage distribution.
Modelling the Impact of Macroeconomic Conditions on Wage Inequality in Italy
QUINTANO C;
2008-01-01
Abstract
In this paper we analyse the effect of macroeconomic conditions on wage inequality in Italy over time. A conditional Dagum model is proposed in order to incorporate the macroeconomic conditions into the model parameters. We explore the effect of macroeconomic variables by simulating counterfactual densities conditional on different macroeconomic scenarios and quantitative implications are then derived through the comparison of summary inequality measures. Both unemployment and inflation have been found to play some role for the structural shifts in the real wage distribution.File in questo prodotto:
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