TY  - RPRT
        AU  - Jäntti, Markus
AU  - Jenkins, Stephen P.
        TI  - Examining the Impact of Macro-Economic Conditions on Income Inequality
        PY  - 2001/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 364
        UR  - https://www.iza.org/index.php/publications/dp364
        AB  - This paper proposes a new approach for analyzing the relationship between macroeconomic factors and the income distribution. The conventional method of analysis is regression of summary inequality indices on variables such as the unemployment and inflation rates. Building on the lessons from recent advances in time-series econometrics, we suggest instead that one should first fit a parametric functional form to the income distribution for each year, and then model the time series of model parameters in terms of the macroeconomic factors. Inferences about the relationship between the income distribution and macro-economic factors can be derived from the model estimates. We apply these methods to data from the United Kingdom for 1961-91, and contrast the results with those found using earlier methods.
        KW  - unemployment
KW  - macro-economic conditions
KW  - Income inequality
KW  - Singh-Maddala distribution
KW  - inflation
        ER  -