This is the background paper for the productivity extension of the World Bank's Long-Term Growth Model (LTGM). Based on … an extensive literature review, the paper identifies the main determinants of economic productivity as innovation … Penn World Table, and assesses the pattern of productivity growth across regions and income groups over the same sample …

a two-class society in which growth is driven by the accumulation of human capital. The levels of public education and … with a high share of lump-sum transfers. Numerical analysis shows empirically plausible result of growth, inequality and …

education. Public education is favourable for growth because it increases the level of human capital and at the same time it …. The main results are that for a given structure of political rights, more inequality may be good for growth if it implies … more political support for education; increased political rights are good for growth and also imply a more equal income …