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2019 | OriginalPaper | Chapter

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

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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.

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Footnotes
1
In addition, the report suggests that there are prospects for developing economies to gain ground towards advanced economy income levels.
 
Metadata
Title
Is There a Role for the Monetary Policy Channel in Transmitting Positive Shocks to the Services Sector Employment Shares to Income Inequality?
Authors
Eliphas Ndou
Thabo Mokoena
Copyright Year
2019
DOI
https://doi.org/10.1007/978-3-030-19803-9_9