This paper explores the propositions that income inequality is relatively stable within countries and that it varies significantly among countries. A new and expanded data set provides broad support for both propositions. Drawing on political economy and capital market imperfection arguments to...

Research on inequality and growth can be divided into two strands. One, deriving from Kuznets and Lewis, has tried to identify a mechanistic relationship between growth, or level, of income and inequality. The other has tried to find causal explanations of growth and inequality, treating each...