Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/95445 
Year of Publication: 
2013
Series/Report no.: 
LIS Working Paper Series No. 587
Publisher: 
Luxembourg Income Study (LIS), Luxembourg
Abstract: 
This study examines empirically the impact of income polarization on economic growth in an unbalanced panel of more than 70 countries during the 1960-2005 period. We calculate various polarization indices using existing micro-level datasets, as well as datasets reconstructed from grouped data on income distribution taken from the World Income Inequality Database. The results garnered for our preferred sample of countries suggest that income polarization has a negative impact on growth in the short term, while the impact of income inequality on growth is statistically insignificant. Our results are fairly robust to various model specifications and estimation techniques.
Subjects: 
economic growth
polarization
inequality
income distribution
JEL: 
O11
O15
O4
D31
Document Type: 
Working Paper

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