Inequality and growth: industry-level evidence

Lisardo Erman, Daniel te Kaat*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

3 Citaten (Scopus)

Samenvatting

Using a comprehensive data set of 22 industries in 86 countries over the period 1980–2012, we empirically identify the effect of inequality on industry-level value added growth. We show that an unequal income distribution increases the growth rates of physical-capital-intensive industries and reduces the growth rates of human-capital-intensive industries by lowering human capital and raising physical capital accumulation. Our study suggests that the empirical difficulty to identify a monotonic relationship between inequality and aggregate growth reflects differences in the relative importance of human and physical capital in a country’s production structure.
Originele taal-2English
Pagina's (van-tot)283-308
Aantal pagina's26
TijdschriftJournal of Economic Growth
Volume24
Nummer van het tijdschrift3
DOI's
StatusPublished - sep-2019
Extern gepubliceerdJa

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