Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to...

This paper examines the sensitivity of the growth-inequality tradeoff to the progressivity of the tax structure. Using an endogenous growth model calibrated to approximate the US tax structure, we simulate a 5% reduction in the economy-wide average tax rate attained by alternative combinations...