We would like to invite you to the Empirical Seminar series organized by the Institute of Economic Research, Slovak Academy of Sciences, Šancová 56 that will be held in hybrid form (online and at the library of the Institute of Economic Research, Slovak Academy of Sciences). The seminar will take place on March 20th, 2024 at 10.00 a.m. (CET).
The speaker will be Steven J. Yamarik (Center for Financial Development and Stability, School of Economics, Henan University & California State University at Long Beach, USA).
The topic of the seminar is: The Effect of Monetary Policy Shocks on Income Inequality across US states
Authors: Makram El Shagi – Steven J. Yamarik
Abstract
This paper examines the impact of Federal Reserve policy on income inequality across US states. We use the local projections method of Jordà to estimate impulse response functions for each state. We find that a restrictive monetary policy increases income inequality in almost all states, but with different magnitudes. Subsequent panel analysis examines the possible transmission mechanisms that can account for these differences. Our empirical results confirm the theoretical predictions – inequality is increased by higher inflation, home ownership, and earnings in the finance, insurance and real estate (FIRE) sector; but decreased by higher housing prices, unionization rates, educational attainment and minimum wage.
The seminar will be co-chaired by Mária Širaňová.