Economic growth and income inequality (2000-15)

Abstract

We investigate whether income inequality affects subsequent growth in a cross-country sample for 1965-90, using the models of Barro (1997), Bleaney and Nishiyama (2002) and Sachs and Warner (1997), with negative results.We then investigate the evolution of income inequality over the same period and its correlation with growth.The dominating feature is inequality convergence across countries.This convergence has been significantly faster amongst developed countries.Growth does not appear to influence the evolution of inequality over time.

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