The simultaneous evolution of growth and inequality

Lyn Squire

605 citations0/0 files storedThe Economic Journal

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Income, Poverty, and Inequality Economic Theory and Policy Economic Growth and Productivity

Abstract

Research on inequality and growth can be divided into two strands. One, deriving from Kuznets and Lewis, has tried to identify a mechanistic relationship between growth, or level, of income and inequality. The other has tried to find causal explanations of growth and inequality, treating each independently. In this paper, we draw from both strands to test whether growth and inequality are the joint outcomes of other variables and processes. We find that simultaneous examination of growth and inequality yields significantly different results and has different consequences for policy from previous independent studies.

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References

1995Another look at the instrumental variable estimation of error-components models 1991Economic Growth in a Cross Section of Countries 1989Economic Growth in a Cross Section of Countries 2019Economic Growth and Income Inequality 1999The quality of government 1995Economic Reform and the Process of Global Integration 1991The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988 1996A New Data Set Measuring Income Inequality

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