inequality as the price of unobserved skills (the standard deviation of the residuals) into their decomposition equation. …

end of a period serves as her endowment in the following period. In this setting growth and inequality arise endogenously …. Inequality and group income are positively correlated for poor groups, but negatively correlated for rich groups. There is very … strong path dependence: inequality in early periods is strongly negatively correlated with group income in later periods …

The innovative approach presented introduces a modified neoclassical growth model which includes a new bias of … technological progress in a quasi-endogenous growth model in which part of labor is used in the research & development sector. The … capital is positively influenced by the size of the R&D sector, sheds new light on innovation and growth as well as income …

growth, inequality enhanced the process of development by channeling resources towards individuals whose marginal propensity … dramatic transformations in the past century. While classical economists advanced the hypothesis that inequality is beneficial … for growth, the neoclassical paradigm dismissed the classical hypothesis and suggested that income distribution has …

inequality is permanent, the increase in growth appears to be permanent. However, our estimates imply that it would take 13 years …Pooling data for 1905 to 2000, we find no systematic relationship between top income shares and economic growth in a … top decile's income share is associated with a statistically significant 0.12 point rise in GDP growth during the …

We analyze the association between inequality and growth across 72 labor market regions in Sweden 1990-2006. Highly … accurate measures of growth and inequality (gini, Q3, p9075, p5010) are derived from population register data. The regional set … inequality enhances growth by stimulating commuting incentives. …

We examine the (potentially nonlinear) relationship between inequality and growth using a method which does not require … used (nonlinear) parametric approaches - the economy first expands rapidly with a large decline in inequality, plateaus … when inequality remains relatively stable, and then decreases rapidly with a large increase in inequality. This novel …

We explore the relationship between the level of village inequality in 1986, and the subsequent growth of household … inequality is negatively related to subsequent household income growth. We are able to address a number of econometric issues … correlated with household income growth: Whatever factor drives the inequality-growth relationship only operates in the “long run …