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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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The Interaction between Human and Physical Capital Accumulation and the Growth-Inequality Trade-off
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Territorial and individual educational inequality: A Capability Approach analysis for Italy.
TL;DR: In this paper, the authors investigated the educational divide between the Centre-North and the South using the Oaxaca-Blinder decomposition and estimated the Educational Kuznets Curve through a dynamic panel model.
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The finance-growth nexus: The role of banks
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Assessing the impact of past distributional shifts on global poverty levels
TL;DR: In this paper, the effects of past changes in income distribution on current levels of poverty were investigated based on data from UN and World Bank sources covering 77 countries and various periods from the 1960s to the 1990s.
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