This paper provides a critical survey and synthesis of the recent economic literature on intergenerational mobility in developing countries, with a focus on data and methodological challenges. The attenuation due to measurement error is compounded by sample truncation resulting from co-residency...

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...

Developing natural resource-rich (DNRR) countries exhibit a significant propensity for consuming luxury manufacturing products, primarily driven by the windfall generated from their abundant natural resources. However, they often lack the domestic capacity to produce these products. We...

In this paper we investigate the effects of technological progress on income distribution, and unemployment, in the framework of the original Harris-Todaro model. We study several forms of technological progress that takes place both in the urban and the rural sector of the economy. One basic...

Why have the income disparities between fast-growing economies and development laggards widened over the past five decades? How important is the role played by institutional barriers with relation to technology adoption? Using cross-country analysis, we find that more-severe institutional...

The theoretical literature has predicted that inequality affects long-run growth by reducing human and physical capital, particularly in the presence of imperfect credit markets and other contractual frictions. We test these four mechanisms using measures of inequality at the country-level,...

A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...

This article shows that countries with higher historical levels of income inequality, dating back to the early 1800s, experienced lower rates of growth centuries after in terms of number of firms created, number of employees hired, firms' output, value added and profit margin. To increase the...

This paper aims to explain the nonlinear effect of inequality on economic growth, that income inequality promotes economic growth in rich countries while reducing economic growth in emerging countries. We developed a model where the effect of inequality on output growth alters under different...