Blanco, Andres; Drenik, Andres; Zaratiegui, Emilio - National Bureau of Economic Research - 2024
We study the distribution of labor income during large devaluations. Across countries, inequality falls after large … 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 …