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

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  • Gonzalvez, M.
  • Menendez, A.

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.

Suggested Citation

  • Gonzalvez, M. & Menendez, A., 2000. "The Effect of Unemployment on Labor Earnings Inequality: Argentina in the Nineties," Papers 193, Princeton, Woodrow Wilson School - Development Studies.
    • Handle: RePEc:fth:priwds:193
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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Almeida dos Reis, Jose Guilherme & Paes de Barros, Ricardo, 1991. "Wage inequality and the distribution of education : A study of the evolution of regional differences in inequality in metropolitan Brazil," Journal of Development Economics, Elsevier, vol. 36(1), pages 117-143, July.
    3. Cesar Patricio Bouillon & Arianna Legovini & Nora Lustig, 2003. "Rising Inequality in Mexico: Household Characteristics and Regional Effects," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 112-133.
    4. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
    5. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    6. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
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    Cited by:

    1. Andi Faisal Anwar & Angelina Putri Asnun & Abdul Wahab, 2021. "Measuring the Impact of Inclusive Economic Growth; Empirical Study of SDGs in Indonesia," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 192-218, November.
    2. Jurgita Markevičiūtė & Jolita Bernatavičienė & Rūta Levulienė & Viktor Medvedev & Povilas Treigys & Julius Venskus, 2022. "Impact of COVID-19-Related Lockdown Measures on Economic and Social Outcomes in Lithuania," Mathematics, MDPI, vol. 10(15), pages 1-20, August.
    3. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.
    4. Carlos Foronda Rojas, 2006. "Evaluación de los efectos de las políticas de exportación y de productividad en la distribución del ingreso a partir de microsimulaciones," Investigación & Desarrollo, Universidad Privada Boliviana, vol. 1(1), pages 41-60.
    5. Carlos Alberto Foronda Rojas & Milenka Ocampo, 2008. "Retornos de la educaciÛn pública y privada: Inferencia asintótica y bootstrap en medidas de desigualdad," Investigación & Desarrollo, Universidad Privada Boliviana, vol. 1(1), pages 45-63.

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    More about this item

    Keywords

    INCOME ; UNEMPLOYMENT ; WAGES;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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