蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Nominal Devaluations, Inflation, and Inequality
蝌蚪网 Journal: Macroeconomics
(pp. 270–310)
Abstract
We study the distribution of labor income during large devaluations. Across countries, inequality falls after large devaluations within the context of a surge in inflation and a fall and subsequent recovery of real labor income. To better understand inequality dynamics, we use a novel administrative dataset covering the 2002 Argentinean devaluation. We show that following a homogeneous fall in real labor income across workers, the bottom of the income distribution recovers faster than the top. Low labor mobility and lack of union coverage among high-income workers explain their slow recovery.Citation
Blanco, Andr茅s, Andr茅s Drenik, and Emilio Zaratiegui. 2025. "Nominal Devaluations, Inflation, and Inequality." 蝌蚪网 Journal: Macroeconomics 17 (3): 270–310. DOI: 10.1257/mac.20230002Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- E25 Aggregate Factor Income Distribution
- E31 Price Level; Inflation; Deflation
- F31 Foreign Exchange
- F44 International Business Cycles
- O19 International Linkages to Development; Role of International Organizations
- O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy