Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20607
Authors: 
Heshmati, Almas
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1338
Abstract: 
This paper examines the causal relationship between inequality and a number of macroeconomic variables frequently found in the inequality and growth literature. These include growth, openness, wages, and liberalisation. We review the existing cross-country empirical evidence on the effects of inequality on growth and the extent to which the poorest in society benefit from economic growth. The linkage between growth, redistribution and poverty is also analysed. In the review of literature mainly empirical examples from 1990s are taken. In addition we test the conditional and unconditional relationship between inequality and growth in the post World War II period using WIDER inequality database. Regression results suggest that income inequality is declining over time. Inequality is also declining in growth of income. There is a significant regional heterogeneity in the levels and development over time. The Kuznets hypothesis represents a global U-shape relationship between inequality and growth.
Subjects: 
growth
openness
income inequality
wage inequality
poverty
indices
JEL: 
F14
D63
C23
O57
O40
Document Type: 
Working Paper

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