The Evolution of the Earnings Distribution in a Volatile Economy: Evidence from Argentina

Blanco, Andrés Blanco; Astarloa, Bernardo Diaz de; Drenik, Andrés; Moser, Christian; Trupkin, Danilo R.

doi:10.2139/ssrn.3779632

Cited by 4 publications

(1 citation statement)

References 19 publications

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“…In this manner, we contribute to an emerging literature that compares administrative and household survey data in other lower-income countries, such as Argentina(Blanco et al, 2021) and Mexico(Calderón et al, 2021).…”

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confidence: 99%

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Engbom¹,

Gonzaga²,

Moser³

et al. 2022

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Using rich administrative and household survey data spanning 34 years from 1985 to 2018, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil's formal sector. Higher-order moments of the distribution of earnings changes show cyclical movements in Brazil that are similar to those in developed countries like the US. Relative to the formal sector, the informal sector is associated with a significant earnings penalty and higher earnings volatility for identical workers. Earnings changes of workers who switch from formal to informal (from informal to formal) employment are relatively negative (positive) and large in magnitude, dispersed, negatively (positively) skewed, and less leptokurtic. Our results suggest that informal employment is an imperfect insurance mechanism.

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confidence: 99%

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Engbom¹,

Gonzaga²,

Moser³

et al. 2022

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Effects of public sector wages on corruption: Wage inequality matters

Demirgüç-Kunt

Lokshin

Kolchin

2023

Journal of Comparative Economics

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The evolution of the earnings distribution in a volatile economy: Evidence from Argentina

Blanco

Astarloa

Drenik

et al. 2022

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This paper studies earnings inequality and dynamics in Argentina between 1996 and 2015. Following the 2001–2002 crisis, the Argentine economy transitioned from a low‐ to a high‐inflation regime, while collective bargaining and the minimum wage gained influence. This transition was associated with a persistent decrease in earnings dispersion and cyclical movements in higher‐order moments of the distribution of earnings changes. To shed light on the changing nature of wage rigidity during this period, we develop a new method to estimate regular‐wage processes. As the Argentine economy transitioned from low to high inflation, the monthly frequency of regular‐wage changes almost doubled, while the distribution of regular‐wage changes morphed from having a mode around zero and positive skewness to having a positive mode and more symmetric tails.

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The Evolution of the Earnings Distribution in a Volatile Economy: Evidence from Argentina

Cited by 4 publications

References 19 publications

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Effects of public sector wages on corruption: Wage inequality matters

The evolution of the earnings distribution in a volatile economy: Evidence from Argentina

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