TY  - JOUR
AU  - SKOTT, Peter
AU  - ABOOBAKER, Adam
PY  - 2025
TI  - Cyclical Patterns of Employment, Wage Inequality, and the Functional Distribution of Income
JO  - Political Economy Quarterly
SN  - 2097-1516
SP  - 161
EP  - 195
VL  - 4
IS  - 1
AB  - Like the functional distribution of income, wage inequality is subject to fairly regular cyclical fluctuations. In this paper, we (ⅰ) analyze sources of these fluctuations, (ⅱ) present models of endogenous cycles that include heterogeneous labor and wage inequality, (ⅲ) show that these models generate patterns of both wage inequality and the functional income distribution that are in line with the evidence, and (ⅳ) caution against any extrapolation of cyclical patterns to long-term trends and beliefs in expansionary aggregate demand policy as the key instrument to promote greater economic equality.
UR  - https://doi.org/10.26599/PEQ2025.9310108
DO  - 10.26599/PEQ2025.9310108