Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/119737 
Year of Publication: 
2014
Series/Report no.: 
LIS Working Paper Series No. 613
Publisher: 
Luxembourg Income Study (LIS), Luxembourg
Abstract: 
This paper investigated the link between inflation and the top decile income share after the global financial crisis. The analysis was done on a sample of 42 countries. We found that higher inflation has reduced the income going to the top decile. The main explanation is that inflation has eroded their labour income, differently from the low-income individuals, which has been protected by minimum-wage increases. These findings imply that minimum wages should rise during inflationary episodes in order to prevent rising income inequality.
Subjects: 
inflation
inequality
income distribution
top income share
financial crisis
Great Recession
JEL: 
D31
E31
G01
Document Type: 
Working Paper

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