RT Journal Article
T1 Who takes the cake? the heterogeneous effect of European Central Bank accommodative monetary policy across income classes
A1 Bárcena-Martín, Elena María
A1 Martín-Fuentes, Natalia
A1 Pérez-Moreno, Salvador Jesús
K1 Banco Central Europeo - Política monetaria - 2006-2019
AB This work provides evidence of the heterogeneous effects of the ECB's monetary policy across income classes. In particular, this investigation focuses on the labor market channel. Based on EU-SILC data, we estimate country-specific structural vector autoregressions (SVAR) models to analyze the impact of the expansionary monetary policy shocks over the 2006–2019 period. The results suggest that monetary easing helped decrease unemployment rates for lower- and middle-income classes, to a larger extent for the former. This differential impact is accounted for a stronger improvement in job finding rates for classes located at the bottom of the income distribution. Conversely, the employment status of the upper class remained largely unaffected. The analysis identifies a positive impact of expansionary monetary policy on real labor income, which seems to have mostly benefitted the upper class. Overall, our results suggest that expansionary monetary policy helped decrease labor income inequality by exerting a stronger positive impact on lower-income households.
PB Wiley
YR 2025
FD 2025
LK https://hdl.handle.net/10630/36704
UL https://hdl.handle.net/10630/36704
LA eng
NO Bárcena-Martín, E., Martín-Fuentes, N. and Pérez-Moreno, S. (2025), Who Takes the Cake? The Heterogeneous Effect of European Central Bank Accommodative Monetary Policy across Income Classes. Review of Income and Wealth, 71: e12720. https://doi.org/10.1111/roiw.12720
NO Funding for open access charge: Universidad de Málaga / CBUAThis work was supported by the Ministerio de Ciencia e Innovación(PID2020-115429 GB-I00), the Andalusian Regional Government (UMA18-FEDERJA-005), Unicaja Banco and Universidad de Málaga / CBUA
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 19 ene 2026