, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how … configurations of technology, inequality and redistributive policy are feasible in the long run, when all three are endogenous. I … show in particular how the diffusion of technology leads to the exporting' of inequality across borders; and how this, in …