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Income Inequality and Economic Growth: Heterogeneity and Nonlinearity.
- Source :
- Sozialer Sinn; Jun2019, Vol. 20 Issue 1, p1-15, 15p
- Publication Year :
- 2019
-
Abstract
- This paper examines the relationship between income inequality and economic growth in a broad panel of countries over the period from 1965 to 2014. We utilize an improved dataset for inequality with reduced measurement errors, which fosters cross-country comparability. In addition, we investigate whether accounting for heterogeneity across countries alters the estimated effect of inequality on growth, and whether the inequalitygrowth nexus varies with the level of income inequality. Our estimates show that after accounting for heterogeneity, the nonlinear growth effect of income inequality remains statistically and economically significant. We find a threshold effect of inequality on economic growth, and this threshold is higher for developing economies than for developed economies. [ABSTRACT FROM AUTHOR]
- Subjects :
- INCOME inequality
ECONOMIC development
HETEROGENEITY
HUMAN capital
INCOME gap
Subjects
Details
- Language :
- English
- ISSN :
- 14399326
- Volume :
- 20
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Sozialer Sinn
- Publication Type :
- Academic Journal
- Accession number :
- 137697741
- Full Text :
- https://doi.org/10.1515/snde-2018-0084