Cyclical variations of earnings inequality in Brazil
ABSTRACT This paper shows that income distribution can change dramatically during the business cycle. This finding contrasts with the widespread belief that income distribution changes slowly in the absence of wars and revolutions. Macroeconomics explains in good measure short-run variations in inco...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Editora 34
2023-05-01
|
| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571993000400613&lng=en&tlng=en |
| _version_ | 1797816778809671680 |
|---|---|
| author | ELIANA CARDOSO |
| author_facet | ELIANA CARDOSO |
| author_sort | ELIANA CARDOSO |
| collection | DOAJ |
| description | ABSTRACT This paper shows that income distribution can change dramatically during the business cycle. This finding contrasts with the widespread belief that income distribution changes slowly in the absence of wars and revolutions. Macroeconomics explains in good measure short-run variations in income distribution: inequality varies cyclically, and it increases with inflation and unemployment. Furthermore, at least in Brazil, the minimum wage legislation does not contribute to a better income distribution. There is also evidence that populist policies which lead to real appreciation cannot be justified as supporting the poor. Thus, the best way to help the poor is demonstrably not through the manipulation of prices and wages, but probably through macro stability and a transparent tax-transfer system. |
| first_indexed | 2024-03-13T08:43:46Z |
| format | Article |
| id | doaj.art-173008f4e0ce42c8ad21095b8ca8e356 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-03-13T08:43:46Z |
| publishDate | 2023-05-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-173008f4e0ce42c8ad21095b8ca8e3562023-05-30T07:37:28ZengEditora 34Brazilian Journal of Political Economy1809-45382023-05-0113461362510.1590/0101-31571993-0750Cyclical variations of earnings inequality in BrazilELIANA CARDOSOABSTRACT This paper shows that income distribution can change dramatically during the business cycle. This finding contrasts with the widespread belief that income distribution changes slowly in the absence of wars and revolutions. Macroeconomics explains in good measure short-run variations in income distribution: inequality varies cyclically, and it increases with inflation and unemployment. Furthermore, at least in Brazil, the minimum wage legislation does not contribute to a better income distribution. There is also evidence that populist policies which lead to real appreciation cannot be justified as supporting the poor. Thus, the best way to help the poor is demonstrably not through the manipulation of prices and wages, but probably through macro stability and a transparent tax-transfer system.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571993000400613&lng=en&tlng=enIncome distributioninequalityminimum wagebusiness cycles |
| spellingShingle | ELIANA CARDOSO Cyclical variations of earnings inequality in Brazil Brazilian Journal of Political Economy Income distribution inequality minimum wage business cycles |
| title | Cyclical variations of earnings inequality in Brazil |
| title_full | Cyclical variations of earnings inequality in Brazil |
| title_fullStr | Cyclical variations of earnings inequality in Brazil |
| title_full_unstemmed | Cyclical variations of earnings inequality in Brazil |
| title_short | Cyclical variations of earnings inequality in Brazil |
| title_sort | cyclical variations of earnings inequality in brazil |
| topic | Income distribution inequality minimum wage business cycles |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571993000400613&lng=en&tlng=en |
| work_keys_str_mv | AT elianacardoso cyclicalvariationsofearningsinequalityinbrazil |