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Is There a Role for the Monetary Policy Channel in Transmitting Positive Shocks to the Services Sector Employment Shares to Income Inequality?

  • Eliphas Ndou
  • Thabo Mokoena
Chapter

Abstract

Evidence reveals that unexpected increase in the services sector employment shares leads to significant increase in income inequality. In addition, the counterfactual analysis reveals that the inflation below the 4.5 or 6 % threshold dampens the increase in income inequality from positive shocks to the services sector employment shares. Moreover, the counterfactual analysis reveals that high GDP growth, the repo rate, and exchange rate channels amplify the impact of positive shocks to the services sector employment shares onto income inequality.

References

  1. Topalova, P. (2005). Trade liberalisation, poverty and inequality: Evidence from Indian districts (NBER Working Section No. 11614).Google Scholar
  2. WEO. (2018). Chapter 3: Manufacturing jobs: Implications for productivity and inequality. World Economic Outlook. https://www.imf.org/en/Publications/WEO/Issues/2018/03/20/world-economic-outlook-april-2018.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Eliphas Ndou
    • 1
    • 3
    • 4
  • Thabo Mokoena
    • 2
  1. 1.Economic Research DepartmentSouth African Reserve BankPretoriaSouth Africa
  2. 2.Department of Economic, Small Business Development, Tourism and Environmental AffairsFree State Provincial GovernmentBloemfonteinSouth Africa
  3. 3.School of Economic and Business SciencesUniversity of the WitwatersrandJohannesburgSouth Africa
  4. 4.Wits Plus, Centre for Part-Time StudiesUniversity of the WitwatersrandJohannesburgSouth Africa

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