strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which …

may in-duce dramatic changes in political outcomes and greater inequality pronounces the interest-rate effect and may lead …

Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important … negative relation between inequality and growth. After a comprehensive sensitivity analysis, we conclude that our findings are …

In this chapter we inspect economic mechanisms through which technological progress shapes the degree of inequality … among workers in the labour market. A key focus is on the rise of US wage inequality over the past 30 years. However, we … also pay attention to how Europe did not experience changes in wage inequality but instead saw a sharp increase in …

The relationship between income inequality and national savings is theoretically ambiguous, and past empirical studies … have delivered mixed results. We revisit the question using a newly available source of data on inequality: the income … to reject more than modest effects in either direction. We view this as suggesting that inequality at the top end of the …

We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an … distribution of income affects the incentive to innovate and hence long-run growth. In general, less inequality tends to discourage …