This paper develops a unified theory for the dynamic implications of income inequality on the process of development. The proposed theory argues that the replacement of physical capital accumulation by human capital accumulation as a prime engine of economic growth has changed the qualitative...

This paper offers an explanation for some evidence that intergenerational earnings mobility is higher in more developed economies and that mobility is positively correlated with wage equality. In the model mobility promotes economic growth via its effect on the accumulation and allocation of...

I show that non-convexities in technology, assumed in the capital market imperfection literature on the relationship between income distribution and economic development, can be replaced by an assumption that the bequest function is convex with respect to income