Abstract
Evidence reveals that unexpected increase in the manufacturing, tradeable, and mining sector employment shares, leads to significant reduction in income inequality. The reduction in income inequality, due to shocks from these sectors’ employment shares, is amplified by low inflationary environment (that is, the consumer price inflation below or equal to 6 %). In addition, the reduction in income inequality is further amplified by the low repo rate level when consumer price inflation is below the 6 % threshold. This evidence reveals that inflation regimes matter for expansionary monetary policy to influence the reduction in income inequality due to improved manufacturing sector employment share.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
