Monetary policy and the distribution of income : evidence from U.S. metropolitan areas

Giovanni Favara, Francesca Loria, and Egon Zakrajšek

We use Zip code-level Statistics of Income data from the Internal Revenue Service to measure the distribution of income within U.S. metropolitan areas from 1998 through 2019. Exploiting geographic variation in income distribution over time, we study how unanticipated changes in the monetary policy stance shape the subsequent dynamics of income inequality. The results show that monetary policy persistently affects labor income inequality and that these distributional effects are amplified significantly in weak local labor markets.

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Year of publication:	[2025] ; This version: January 2025
Authors:	Favara, Giovanni ; Loria, Francesca ; Zakrajšek, Egon
Publisher:	[Boston] : [Federal Reserve Bank of Boston]
Subject:	Income inequality \| distributional impact of monetary policy \| high-frequency monetary policy surprises \| local labor markets \| Geldpolitik \| Monetary policy \| Einkommensverteilung \| Income distribution \| USA \| United States \| Verteilungswirkung \| Distributional effect

Extent:	1 Online-Ressource (circa 23 Seiten) Illustrationen
Series:	Working papers / Federal Reserve Bank of Boston. - Boston, Mass. : [Verlag nicht ermittelbar], ZDB-ID 2180749-8. - Vol. no. 25, 1
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.29412/res.wp.2025.01 [DOI] hdl:10419/315937 [Handle]
Classification:	E21 - Consumption; Saving ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E58 - Central Banks and Their Policies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10015273029