Jinyeong Yun



Doctoral Candidate in Economics

Justus-Liebig-University Giessen

jinyeong.yun@wirtschaft.uni-giessen.de


A copy of my CV can be found here.



Research Interests

International Macroeconomics, Time Series Econometrics


Working Papers

Capital Inflows and Income Inequality: Evidence from a Panel VAR Approach


Abstract   In this paper, I document empirical evidence that an external shock in capital inflows leads to an increase in income inequality in advanced economies and causes a decline in income inequality in emerging market economies. I estimate a panel VAR model with an annual dataset on 53 countries over the period 1990-2020 to study the effects of capital inflows on income inequality within countries. To distinguish the external capital inflow shocks driven by global financial conditions from other shocks, I identify the structural shocks using sign restrictions. The analysis is conducted separately for advanced and emerging market economies since the two groups show significant differences in the level of economic development and the degree of capital market openness. The results are statistically and economically significant. By income class, a capital inflow shock increases primarily the income share of the rich in advanced economies and the poorest half in emerging market economies. These empirical findings suggest that capital inflows have different impacts on income inequality across countries, and policymakers should pay attention to the possibility of adverse distributional effects of capital inflows.

Financial Integration and Wage Inequality: Evidence from European Countries


Abstract   In this paper, I study the impact of financial integration on between-firm wage inequality using an unbalanced panel for 20 European countries over the period 1999-2021. With the impulse response functions estimated using local projections, I find that financial integration, as measured by the sum of external assets and liabilities, is associated with increased wage inequality within industries. These effects are more pronounced in the mid-term rather than in the short-term. The direction of financial integration, i.e., whether it involves an increase in external assets or liabilities, also matters: inward financial integration significantly increases wage inequality, while outward financial integration does not. I also provide empirical evidence on the channel of distributional effects of financial integration. The financial integration shocks widen the capital intensity (the capital-to-labor ratio) gap within industries, which in turn widens the labor productivity gap. Through this channel, financial integration may affect between-firm wage inequality. Furthermore, the impact of financial integration on wage inequality depends on the external financial dependence of individual industries, while the moderating effect of financial development in each country is less definitive.

Work In Progress

The Impact of Geopolitical Risk on Capital Flows (preliminary title)

with Peter Tillmann

How Does Financial Integration Affect the Distribution of Wealth? (preliminary title)