Inequality in Good and Bad Times: A Cross-Country Approach

Author/Editor:

Burcu Hacibedel ; Pierre Mandon ; Priscilla S Muthoora ; Nathalie Pouokam

Publication Date:

January 22, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper provides evidence of a strong relationship between the short-term dynamics of growth and inequality in developing economies. We find that reductions in inequality during growth upswings are largely reversed during growth slowdowns. Using a new methodology (mediation analysis), we identify unemployment, and youth unemployment especially, as the main channel through which fluctuations in growth affect future dynamics in inequality. These findings suggest that both the quality of jobs created and labor market policies are important to ensure that growth outcomes are conducive to inequality reduction.

Series:

Working Paper No. 19/20

English

Publication Date:

January 22, 2019

ISBN/ISSN:

9781484392911/1018-5941

Stock No:

WPIEA2019020

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

41

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