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Inequality and Economic Growth: The Perspective of the New Growth Theories
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This paper analyzed the relationship between inequality and economic growth from two directions, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency, and provided an explanation for two recent empirical findings, namely, the negative impact of inequality and the positive effect of redistribution upon growth.Abstract:
We analyze the relationship between inequality and economic growth from two directions. The first part of the survey examines the effect of inequality on growth, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency. It therefore provides an explanation for two recent empirical findings, namely, the negative impact of inequality and the positive effect of redistribution upon growth. The second part analyzes several mechanisms whereby growth may increase wage inequality, both across and within education cohorts. Technical change, and in particular the implementation of "General Purpose Technologies," stands as a crucial factor in explaining the recent upsurge in wage inequality.read more
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Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland
TL;DR: Swiss firms are more mature and more efficient than Greek firms at creating, using and combining these [`]new' production factors.
Book ChapterDOI
Wage-led growth: Concept, theories and policies
TL;DR: The authors argues that the global financial crisis has demonstrated the limitations and even falsehood of the claim that wage moderation accompanied by more flexible labour markets as well as labour institutions and laws more favorable to employers will ultimately make for a more stable economy and a more productive and dynamic economic system.
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What's Driving the New Economy?: The Benefits of Workplace Innovation
TL;DR: In this article, the authors examine the relationship between workplace innovations and establishment productivity and wages and find evidence that high-performance workplace practices are associated with both higher productivity and higher wages.
Book
Income distribution in macroeconomic models
TL;DR: In this paper, the authors look at the distribution of income and wealth and the effects that this has on the macroeconomy, and vice versa, taking stock of results and methods developed in the context of the 1990s revival of growth theory, the authors focus on capital accumulation and long-run growth.
Journal ArticleDOI
Inequality and growth in advanced economies: an empirical investigation
TL;DR: In this article, the effect of income and human capital inequality on economic growth in different regions of the world was investigated and the results showed a different effect of inequality on growth depending on the level of development of the region.
References
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Richard Blundell,Stephen Bond +1 more
TL;DR: In this paper, two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator are presented. But both estimators require restrictions on the initial conditions process.
The mechanics of economic development
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Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
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An Exploration in the Theory of Optimum Income Taxation
TL;DR: In this paper, the authors make the following simplifying assumptions: (1) Intertemporal problems are ignored; (2) the tax system that would bring about that result would completely discourage unpleasant work; and (3) what such a tax schedule would look like; and what degree of inequality would remain once it was established.
Journal ArticleDOI
Income Distribution and Macroeconomics
Oded Galor,Joseph Zeira +1 more
TL;DR: The authors analyzes the role of wealth distribution in macroeconomics through investment in human capital and shows that the initial distribution of wealth affects aggregate output and investment both in the short and in the long run, as there are multiple steady states.
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