How Macroeconomic Factors Affect Income Distribution: The Cross-Country Evidence

Michael Sarel

No 1997/152, IMF Working Papers from International Monetary Fund

Abstract: This study develops a cross-section empirical framework to examine the relationship between the macroeconomic environment and trends in income distribution. The macroeconomic variables that are found to be associated with an improvement in income distribution are higher growth rate, higher income level, higher investment rate, real depreciation (especially for low-income countries), and improvement in terms of trade. The estimated significant effects of growth, income, and investment provide evidence that policies designed to promote investment and growth are likely also to contribute to an improvement in income distribution.

Keywords: WP; income; Gini coefficient; rate of change; net; income distribution; macroeconomic factors; in-kind income; income level; net effect; interest income; growth rate; income distribution variable; income distribution issue; Ols regression; inflation stabilization program; after-tax wage income; Inc net; chg Gini coefficient; Personal income; Income inequality; Real exchange rates; Inflation (search for similar items in EconPapers)
Pages: 25
Date: 1997-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2407 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1997/152

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().