About Us
Welcome to STIMM – Structural Transformation, Inequality, and Migration in the Macroeconomy. Our research project is dedicated to exploring the complex causes and far-reaching consequences of income and wealth inequality, and understanding how these disparities shape the design and effectiveness of economic policies, particularly in the areas of fiscal policy and immigration.
Our Mission
At STIMM, we aim to deepen the understanding of the mechanisms that generate income and wealth inequality and examine how these factors influence the development of optimal economic policies. Our research is particularly focused on two key areas:
- Understanding Inequality: We investigate the forces that drive income and wealth inequality, studying both individual characteristics established at labor market entry and unforeseeable, transitory income events that impact individuals over their life cycle.
- Policy Implications: We analyze how existing inequalities and their underlying causes affect the design and effectiveness of economic policies, with a focus on fiscal policy, immigration policy, and optimal tax structures.
Our Approach
Our work is grounded in rigorous quantitative research, employing a blend of empirical methods and macroeconomic modeling. We utilize comprehensive datasets, such as the Panel Survey on Income Dynamics (PSID) in the US and Portugal’s ‘Quadros de Pessoal’, to gain insights into the dynamics of inequality over time. These datasets allow us to distinguish between permanent and transitory components of income and wealth, which is crucial for understanding their respective impacts on economic inequality.
Our Research Impact
The findings from our research have significant implications for various policy domains. For example, understanding the relative importance of permanent versus transitory income differences can inform the optimal design of progressive tax schedules. Additionally, we explore how investment-specific technological changes contribute to income and wealth disparities, with particular attention to the growing wage gaps between skilled and unskilled workers and the role of automation in reshaping labor markets.
Global Goals Alignment
Our work is closely aligned with the United Nations Sustainable Development Goals (SDGs). By focusing on reducing inequalities (Goal 10), ending poverty (Goal 1), promoting gender equality (Goal 5), and fostering sustained, inclusive, and sustainable economic growth (Goal 8), we contribute to the global effort to create a more equitable and prosperous world.