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Paul Makdissi and Quentin Wodon
''Risk-adjusted measures of wage inequality and safety nets''
( 2003, Vol. 9 No.1 )
Income variablity is likely to increase wage inequality if poorer households are more vulnerable to shocks. Using a simple method to estimate risk-adjusted measures of wage inequality and data from Mexico, this note shows that safety nets could offset a good part of the impact of risk aversion on wage inequality.
JEL: I3 - Welfare and Poverty: General
Manuscript Received : Mar 15 2003 Manuscript Accepted : Apr 17 2003

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