IDEAS home Printed from https://ideas.repec.org/a/col/000416/021410.html
   My bibliography  Save this article

Inequality over the business cycle: evidence from an emerging economy

Author

Listed:
  • Jaimes Bonilla Richard

    (Pontificia Universidad Javeriana)

  • Francy Vallejo

    (Pontificia Universidad Javeriana)

Abstract

This paper studies the effects of aggregate shocks on income inequality in Colombia using structural vector autoregressions (SVARs), identified with sign restrictions. We employ household survey data to construct a set of monthly in-come inequality measures and we find that inequality varies substantially and ambiguously over the business cycle. Contractionary aggregate supply and monetary policy shocks lead to an increase in inequality, while contractionary aggregate demand shocks tend to decrease it, at least in the short term. We discuss the role of labor income heterogeneity and income composition in the transmission mechanism of aggregate shocks.

Suggested Citation

  • Jaimes Bonilla Richard & Francy Vallejo, 2024. "Inequality over the business cycle: evidence from an emerging economy," Vniversitas Económica, Universidad Javeriana - Bogotá, vol. 24(4), pages 1-24, August.
    • Handle: RePEc:col:000416:021410
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1IIZVOXVZjG2xjntqFpMJu4ARCOMOU0Cy/view
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000416:021410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mayerly Galindo Rodriguez (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.