{"id":2339,"date":"2023-08-09T15:09:28","date_gmt":"2023-08-09T18:09:28","guid":{"rendered":"https:\/\/madeusp.com.br\/?post_type=made_publication&#038;p=2339"},"modified":"2024-11-01T19:31:21","modified_gmt":"2024-11-01T22:31:21","slug":"the-impact-of-austerity-measures-on-inequality-a-study-of-latin-america-and-the-caribbean","status":"publish","type":"made_publication","link":"https:\/\/madeusp.com.br\/en\/publications\/articles\/the-impact-of-austerity-measures-on-inequality-a-study-of-latin-america-and-the-caribbean\/","title":{"rendered":"The impact of austerity measures on inequality: a study of Latin America and the Caribbean"},"content":{"rendered":"<p class=\"p1\">This paper analy\u00adzes the dyna\u00admic effects of fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adon epi\u00adso\u00addes on dis\u00adpo\u00adsa\u00adble inco\u00adme, mar\u00adket inco\u00adme, hourly wage, and func\u00adti\u00ado\u00adnal ine\u00adqua\u00adli\u00adti\u00ades in Latin Ame\u00adri\u00adca and the Carib\u00adbe\u00adan, uti\u00adli\u00adzing a nar\u00adra\u00adti\u00adve annu\u00adal data set cove\u00adring 1989\u20132016 (David and Leigh, 2018). Using the metho\u00addo\u00adlogy pro\u00adpo\u00adsed by Jord\u00e0 (2005), we deri\u00adve impul\u00adse res\u00adpon\u00adse func\u00adti\u00adons from local pro\u00adjec\u00adti\u00adons and con\u00adduct a com\u00adprehen\u00adsi\u00adve Gini decom\u00adpo\u00adsi\u00adti\u00adon analy\u00adsis to analy\u00adze three chan\u00adnels through whi\u00adch aus\u00adte\u00adrity affects ine\u00adqua\u00adlity: the redis\u00adtri\u00adbu\u00adti\u00adve effect, wage ine\u00adqua\u00adlity, and func\u00adti\u00ado\u00adnal ine\u00adqua\u00adlity. Our base\u00adli\u00adne fin\u00addings indi\u00adca\u00adte that eight years after a fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adon epi\u00adso\u00adde, the hourly wage ine\u00adqua\u00adlity index incre\u00ada\u00adses by 2.26%, and the labor sha\u00adre in inco\u00adme decli\u00adnes by 1.9%. This sug\u00adgests that both chan\u00adnels play a sig\u00adni\u00adfi\u00adcant role in explai\u00adning the rise in ine\u00adqua\u00adlity. Regar\u00adding the redis\u00adtri\u00adbu\u00adti\u00adve chan\u00adnel, we found that the redis\u00adtri\u00adbu\u00adti\u00adon mea\u00adsu\u00adre res\u00adponds posi\u00adti\u00advely to fis\u00adcal shocks in the short run, sug\u00adges\u00adting the cru\u00adci\u00adal role of the soci\u00adal safety net in miti\u00adga\u00adting imme\u00addi\u00ada\u00adte ine\u00adqua\u00adlity impacts. Howe\u00adver, the redis\u00adtri\u00adbu\u00adti\u00adve effect decre\u00ada\u00adses in the medium run after tax-based fis\u00adcal episodes.<\/p>\n<p class=\"p1\"><b>Key words<\/b><\/p>\n<p class=\"p1\">Fis\u00adcal aus\u00adte\u00adrity, wage ine\u00adqua\u00adlity, func\u00adti\u00ado\u00adnal ine\u00adqua\u00adlity, local pro\u00adjec\u00adti\u00adons, Latin Ame\u00adri\u00adcan countries<\/p>\n<p class=\"p1\"><b>JEL codes<\/b><\/p>\n<p class=\"p1\">D30, D60, E60,&nbsp;E62<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper analy\u00adzes the dyna\u00admic effects of fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adon epi\u00adso\u00addes on dis\u00adpo\u00adsa\u00adble inco\u00adme, mar\u00adket inco\u00adme, hourly wage, and func\u00adti\u00ado\u00adnal ine\u00adqua\u00adli\u00adti\u00ades in Latin Ame\u00adri\u00adca and the Carib\u00adbe\u00adan, uti\u00adli\u00adzing a nar\u00adra\u00adti\u00adve annu\u00adal data set cove\u00adring 1989\u20132016 (David and Leigh, 2018). Using the metho\u00addo\u00adlogy pro\u00adpo\u00adsed by Jord\u00e0 (2005), we deri\u00adve impul\u00adse res\u00adpon\u00adse func\u00adti\u00adons from local pro\u00adjec\u00adti\u00adons and conduct&nbsp;[\u2026]<\/p>\n","protected":false},"template":"","tags":[138,270,271,140,269],"made_publication_type":[78],"class_list":["post-2339","made_publication","type-made_publication","status-publish","hentry","tag-fiscal-austerity-en","tag-functional-inequality-en","tag-latin-american-countries-en","tag-local-projections-en","tag-wage-inequality-en","made_publication_type-working-papers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The impact of austerity measures on inequality: a study of Latin America and the Caribbean &#8212; Made<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/madeusp.com.br\/en\/publications\/articles\/the-impact-of-austerity-measures-on-inequality-a-study-of-latin-america-and-the-caribbean\/\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/the-impact-of-austerity-measures-on-inequality-a-study-of-latin-america-and-the-caribbean\\\/\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/the-impact-of-austerity-measures-on-inequality-a-study-of-latin-america-and-the-caribbean\\\/\",\"name\":\"The impact of austerity measures on inequality: a study of Latin America and the Caribbean &#8212; 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