innovation, with various implications for inequality. First, we characterize several market mechanisms whereby higher rates of … innovation lead to higher inequality. Second, we highlight channels whereby inequality acts as an impediment to innovation and … growth. Third, we highlight policies that can help achieve better outcomes for both innovation and inequality. We show that …

In this paper we use cross-state panel data to show that top income inequality is (at least partly) driven by … inequality in cross-state panel regressions. Two distinct instrumentation strategies suggest that this correlation (partly …) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by …