Inequality and growth: industry-level evidence

Autor(en): Erman, Lisardo
te Kaat, Daniel Marcel
Stichwörter: Business & Economics; ECONOMIC-GROWTH; Economics; Human capital; Inequality-growth nexus; Physical capital; PRODUCTIVITY
Erscheinungsdatum: 2019
Herausgeber: SPRINGER
Journal: JOURNAL OF ECONOMIC GROWTH
Volumen: 24
Ausgabe: 3
Startseite: 283
Seitenende: 308
Zusammenfassung: 
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.
ISSN: 13814338
DOI: 10.1007/s10887-019-09169-z

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