The paper contributes to the literature of income inequality and economic growth in two directions. First, it analyzes the impact of income inequality on economic growth both through the supply of human capital and the incentive to invent induced by the demand for better quality goods. Secondly,...

The urban-rural disparity is a common phenomenon in most developing economies. In particular, this disparity is strengthened by the household registration (Hukou) system in China. Chinese economy, as well as its income inequality, rose dramatically in last decades. Most researches show that...

The paper contributes to the literature relating to inequality and economic growth, in particular, we investigate the effects of wealth distribution on the kind of growth driven by innovation, i.e. Schumpeterian growth. Since two types of individuals are assumed, the poor and the rich,...