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Sectoral Reallocation, Growth and Labor Income Inequality

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  • Hernan J. Moscoso Boedo

Abstract

This paper focuses on the transitory relationship between output level and Income inequality. As a result of either permanent or transitory sectoral technological shocks the economy will adjust to a new steady state equilibrium, but during the transition the dynamics of wages and workers will generate departures from the steady state level of income inequality.

Suggested Citation

  • Hernan J. Moscoso Boedo, 2006. "Sectoral Reallocation, Growth and Labor Income Inequality," Virginia Economics Online Papers 373, University of Virginia, Department of Economics.
    • Handle: RePEc:vir:virpap:373
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    File URL: http://repec.as.virginia.edu/RePEc/vir/virpap/papers/virpap373.pdf
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    References listed on IDEAS

    as
    1. Merz, Monika, 1995. "Search in the labor market and the real business cycle," Journal of Monetary Economics, Elsevier, vol. 36(2), pages 269-300, November.
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    More about this item

    Keywords

    inequality; productivity;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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