Barlevy, Gadi; Tsiddon, Daniel - C.E.P.R. Discussion Papers - 2004
Economists have long viewed recessions as contributing to increasing inequality. This conclusion is largely based on … data from a period in which inequality was increasing over time, however. This Paper examines the connection between long …-run trends and cyclical variation in earnings inequality. We develop a model in which cyclical and trend inequality are related …