Open AccessPosted Content
Inequality and Economic Growth: The Perspective of the New Growth Theories
Reads0
Chats0
TLDR
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
Citations
More filters
Journal ArticleDOI
The Provision of Incentives in Firms
TL;DR: In this article, a review of existing work on the provision of incentives for workers is presented, and the authors evaluate this literature in the light of a growing empirical literature on compensation from two perspectives: first, an underlying assumption of this literature is that individuals respond to contracts that reward performance.
Journal ArticleDOI
Inequality and Growth in a Panel of Countries
TL;DR: In this paper, a broad panel of countries showed little overall relation between income inequality and rates of growth and investment, while the Kuznets curve is a clear empirical regularity, but it does not explain the bulk of variations in inequality across countries or over time.
Journal ArticleDOI
The New Growth Evidence
TL;DR: The authors surveys the recent empirical literature on economic growth, starting with a discussion of stylized facts, data problems, and statistical methods and concludes that efficiency has grown at different rates across countries, casting doubt on neoclassical models in which technology is a public good.
Journal ArticleDOI
A Reassessment of the Relationship between Inequality and Growth
TL;DR: In this paper, the authors used an improved data set on income inequality which not only reduces measurement error, but also allows estimation via a panel technique, and found that in the short and medium term, an increase in a country's level of income inequality has a significant positive relationship with subsequent economic growth.
Journal ArticleDOI
Natural resources, education, and economic development
TL;DR: The authors found that economic growth has varied inversely with the share of natural capital in national wealth across countries, and that natural capital appears to crowd out human capital, thereby slowing down the pace of economic development.
References
More filters
Journal ArticleDOI
A Theory of Trickle-Down Growth and Development
Philippe Aghion,Patrick Bolton +1 more
TL;DR: In this article, the authors developed a model of growth and income inequalities in the presence of imperfect capital markets, and analyzed the trickle-down effect of capital accumulation, showing that when the rate of accumulation is sufficiently high, the economy converges to a unique invariant wealth distribution.
Posted Content
Changes in the Structure of Wages During the 1980'S: an Evaluation of Alternative Explanations
TL;DR: This article investigated several alternative explanations of these wage structure phenomena, including shifts in the structure of product demand, skilled-labor saving technological change, and changes in the incidence and level of rents received by lower skilled workers.
Journal ArticleDOI
Fiscal policy and economic growth
William Easterly,Sergio Rebelo +1 more
TL;DR: In this paper, the empirical regularities relating fiscal policy variables, the level of development, and the rate of growth are described, and they employ historical data, recent cross-section data and newly constructed public investment series.
Posted Content
Cross-National Comparisons of Earnings and Income Inequality
TL;DR: This article reviewed the evidence on cross-national comparisons of earnings and income inequality in OECD countries, concluding with a call for more work on empirically testable structural models of household income distribution.
Journal ArticleDOI
Growing World Trade: Causes and Consequences
TL;DR: In the United States, the share of imports and exports in America's GDP are only about half of what they were in the United Kingdom thirty years ago as discussed by the authors. And the U.S. economy is not now, and may never be, as dependent on exports as Britain was during the reign of Queen Victoria.
Related Papers (5)
Ability Biased Technological Transition, Wage Inequality, and Economic Growth
Oded Galor,Omer Moav +1 more