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The Effect of Unemployment on Labor Earnings Inequality: Argentina in the Nineties

M. Gonzalvez and Alicia Menendez

Working Papers from Princeton, Woodrow Wilson School - Development Studies

Abstract: In this paper we develop a methodology that allows us to quantify the effect of changes in unemployment rates on labor income inequality. We estimate individual earnings functions for employed people conditional on a working status polychotomous model and we establish a formal procedure to assign wages to unemployed workers. We simulate the probability distribution of unemployed persons of particular year on a base year.

Keywords: INCOME; UNEMPLOYMENT; WAGES (search for similar items in EconPapers)
JEL-codes: C25 D31 E24 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2000
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