A Macroeconometric Analysis of Inequality and Poverty Based on FIES

Abstract

Unlike the conventional model, this macroeconometric model contains consumption functions and labor supply functions by income class in households based on FIES and links them with corporate activities such as the wage and the employment and the macro economy. Using this model, we analyzed how economic policies, which are an increase of the minimum wage, the income compensation like a tax refund, aids for the pension and the medical expense etc., increase/decrease wages, employment, income, income inequality and the poverty.