Inflation and income inequality: does the level of income inequality matter?

Authors

• Edmond Berisha, Montclair State UniversityFollow
• Ram Sewak Dubey, Montclair State UniversityFollow
• Orkideh Gharehgozli, Montclair State UniversityFollow

Document Type

Preprint

Publication Date

1-1-2023

Journal / Book Title

Applied Economics

Abstract

Given the complexity of interaction between inflation and inequality, we examine whether the impact of inflation on inequality differs among distinct levels of income inequality across the US states. Results reveal that there is a negative contemporaneous effect of inflation on the inequality which becomes stronger with higher levels of income inequality. However, over a one year period, we find higher inflation rate to further increase income inequality only when income inequality is initially relatively low.

DOI

10.1080/00036846.2022.2128293

MSU Digital Commons Citation

Berisha, Edmond; Dubey, Ram Sewak; and Gharehgozli, Orkideh, "Inflation and income inequality: does the level of income inequality matter?" (2023). Department of Economics Faculty Scholarship and Creative Works. 92.
https://digitalcommons.montclair.edu/economics-facpubs/92