Public education is usually seen as having at least two desirable effects: fostering economic growth and reducing income inequality. This paper revisits both relations in a single model of occupational choice with an endogenous supply of teachers. First, we show that the impact of public...

This chapter reviews the literature that tries to explain the disparity and variation of GDP per worker and GDP per capita across countries and across time. There are many potential explanations for the different patterns of development across countries, including differences in luck, raw...

Finance is a vital ingredient for economic growth, but there can also be too much of it. This study investigates what fifty years of data for OECD countries have to say about the role of the financial sector for economic growth and income inequality and draws policy implications. Over the past...

According to increasing marginal tendency to tax avoidance, we establish a dynamic theoretical model, which illustrates an inverted U-curve relationship between economic growth and income inequality in the long run. This finding stands in sharp contrast to the Kuznets curve—whereby inequality...

This paper studies two striking stylized facts about China's reform: that the output growth in the early stage of the reform is mainly due to productivity growth, and that the income inequality is increasing over time. This paper is a preliminary attempt in understanding these two facts in an...

We reassess convergence of income and its determinants across countries using the dataset constructed by Klenow and Rodriguez-Clare (2005) and our updated version of the same data. Consistent with the literature, the ergodic distribution of output per worker features separate convergence clubs....

En los 90's se dieron cambios sustanciales en materia económica en el país. Se pretende encontrar una relación entre estos cambios, el aumento en la desigualdad y la mayor volatilidad y menor dimensión de las tasas de crecimiento del PIB a partir de la misma fecha. Para esto se comenzó por...

Economic development, which refers to the process of progressive transformation of an economy, is a multifaceted term without a universal definition. This article presents the constitutive elements of economic development, such as growth, distribution, and innovation. Economic development has...

This paper examines the empirical relationship between inequality and growth, and analyzes the impacts of growth, inequality, and government spending on poverty reduction. A new panel dataset has been assembled on inequality and poverty that reduces measurement error and ensures comparability...

This paper presents a three class growth model with labor market conflict. The classes are workers, a middle management middle class, and a "top" management capitalist class. The model introduces personal income distribution that supplements conventional concerns with functional income...