Income Inequality: Does Inflation Matter?

By Aleš Bulíř. International Monetary Fund Staff Papers, 2001

281 citations recorded by the source corpus.

This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Level of development, state employment, fiscal redistribution, and price stability are found to improve income inequality in a given country. The positive impact of price stability on income distribution is nonlinear The reduction in inflation from hyperinflationary levels significantly lowers income inequality, while further reduction toward a very low level of inflation seems to bring about negligible additional gains in the Gini coefficient.

Subfields: Economics and Econometrics

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In Economics and Econometrics

Citations in the corpus

Urbanization and income inequality in Sub-Saharan Africa (2019, unknown): “Bulíř (2001) proposed an “outsider” versus “insider” model whereby outsiders are workers who accept nominal contracts while insiders’ contracts are inflation-indexed.”
Poverty Reduction and Growth: Virtuous and Vicious Circles (2006, background): “[+] and more detrimental for countries with high or hyperinflation: Easterly and Fischer (2001), Bulir (2001), Li and Zou (2002)”
Macroeconomic Adjustment and the Poor : Analytical Issues and Cross-Country Evidence (2002, background): “Bulir (2001), in particular, found that the adverse effect of inflation on income distribution is highly significant at high inflation levels.”
Inequality and Development Across and Within Countries (2006, methodology): “Bulı́ř (2001) includes inflation as an additional control in testing the Kuznets curve,”
The impact of mobile phone penetration on African inequality (2013, background): “We expect: high inflation to fuel inequality (Albanesi, 2007) while, low inflation should reduce it (Bulir, 1998; Lopez, 2004); GDP growth to reduce inequality conditional on even-distribution of the fruits of economic prosperity; financial depth decreases uneven income distribution (Kai & Hamori,…”
Income Inequality and Inflation in the EU (2012, methodology): “130 European Research Studies, Volume XV, Issue (1), 2012 Bulir (2001) follows Milanovic (1994) and augments Kuznet hypothesis of income inequality by incorporating inflation by using Milanovic (1994)’s original data .”