Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/95604 
Year of Publication: 
2003
Series/Report no.: 
LIS Working Paper Series No. 354
Publisher: 
Luxembourg Income Study (LIS), Luxembourg
Abstract: 
This paper investigates the importance of the shape of the income distribution as a determinant of economic growth in a panel of countries. Using comparable data on disposable income from the Luxembourg Income Study, results show that aggregate inequality measures, such as Gini coefficients, can mask key features of the relationship between inequality and growth. In particular, inequality at the top end and bottom end of the distribution appear to have opposite effects on growth. This finding supports the argument that the profile of the income distribution, and not only its spread, helps define the impact of inequality on growth.
Document Type: 
Working Paper

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