This paper presents an assessment of the relationship between income distribution, fundamentals affecting economic growth, and labor market policies. When this relationship is tested, the explanatory power turns out to be surprisingly high: on average, economic fundamentals explain about...

The paper provides an assessment of the determinants of income inequality in a broader macroeconomic context. In particular the hypothesis that income inequality is related to fundamentals affecting economic growth is examined.

This paper aims at obtaining empirically tentative answers to at least two questions of importance in the macroeconomic literature: (1) to what degree are private and public investment in physical and knowledge capital productive and what is their role in longer-term movements in aggregate...