The Effect of Inflation on Wage Inequality: A North-South Monetary Model of Endogenous Growth with International Trade

• Tipo: Artigo em Revista Científica Internacional
• Data: 2023-02

Autores

Óscar Afonso (Autor) FEP; Sequeira, T (Autor) Outra

Revista

Título: Journal of Money, Credit and Banking

Vol. 55 Nº 1

Páginas: 215-249

ISSN: 0022-2879

Editora: Wiley-Blackwell

Indexação

ISI Web of Knowledge - 15 Citações

Scopus - 13 Citações

Outras Informações

ID Authenticus: P-00V-ZX3

DOI: 10.1111/jmcb.12914

Abstract (EN): This study analyzes the effects of inflation on intra- and intercounty wage inequality, specialization, and growth, using a North-South endogenous growth model with international trade and money. The relationship between inflation and intracountry wage inequality depends on firms' credit constraints and on the inflation levels. Our results indicate that inflation decreases specialization in skilled production and increases intracountry wage inequality. Moreover, increasing inflation in the South increases the wage inequality gap between countries. Theoretical results are confirmed through calibration and match with existing empirical evidence.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 35