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The two-sector specific factor model is typically used in the theory of international trade where it helps to clarify the principle of comparative advantage. Instead, we use this model as explicit theoretical framework to explain major trends of long-run economic development. Combined with...
Persistent link: https://www.econbiz.de/10010266861
In this paper education simultaneously affects growth and income inequality. More education does not necessarily … then decrease growth as well as income inequality, when measured by the Gini coefficient. There is no clear functional … relationship between growth and measured income inequality. The model identifies regimes of this relationship which depend …
Persistent link: https://www.econbiz.de/10010266863
also small relative to the variation in growth in average incomes, implying that the latter accounts for most of the … variation in income growth in the poorest quintiles. These findings hold across most regions and time periods and when … conditioning on a variety of country-level factors that may matter for growth and inequality changes. This evidence confirms the …
Persistent link: https://www.econbiz.de/10009788629
Persistent link: https://www.econbiz.de/10011513980
We examine the (potentially nonlinear) relationship between inequality and growth using a method which does not require …
Persistent link: https://www.econbiz.de/10010469680
partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U … requires more resources, which lowers pre-tax and post-tax income inequality as well as growth. Using consistently defined … income data from the Luxembourg Income Study suggests that there is a negative relationship between growth and income …
Persistent link: https://www.econbiz.de/10011409838
We study the relationship between per-capita income and income inequality with a heterogeneous panel co-integration approach.We extend previous studies in two respects: first, we compile a more extensive data set for 61 countries over 26-51 years and consider measures for both pre-tax and...
Persistent link: https://www.econbiz.de/10011981849
This paper reconsiders the political economy approach to growth and distribution according to which (1) rising … taxation; and (3) higher distortionary taxes reduce economic growth. We present a variety of theoretical arguments … real-world element to the basal models. The political economy models of growth and distribution, as well as the specific …
Persistent link: https://www.econbiz.de/10010306778
This study examines empirically the impact of income polarization on economic growth in an unbalanced panel of more … growth in the short term, while the impact of income inequality on growth is statistically insignificant. Our results are …
Persistent link: https://www.econbiz.de/10010335431
I study a model where Information Technology, while typically increasing overall inequality, is likely to harm some people at intermediate and high levels of the distribution of income but to benefit people at the bottom. Within a given occupation it may harm some workers while benefitting...
Persistent link: https://www.econbiz.de/10010262486