Faculty of Business Seminar Series / Ozan Ekşi

Date: Tuesday, Feb 18th, 2020

Time: 13:30-15:00

Location: AB2, Meeting Room 345

Title: Traces of the Past in Income Inequality

Abstract: We show that the cumulative effect on income inequality of structural economic changes can only be observed in years. The implications of this result for the empirical approach to the inequality data is discussed through a simple linear regression setting. This analysis shows that determinants of inequality can only be found by (i) specifying a dynamic model, or (ii) using the average of changes in within-cohort inequalities as the dependent variable. The results obtained with the US and UK data show that these two methods deliver similar results with each other, which significantly differ from those obtained through standard static regression analyses.