The Journal of Economic Inequality

, Volume 8, Issue 3, pp 293–321

Inequality and growth in advanced economies: an empirical investigation

Article

DOI: 10.1007/s10888-010-9133-4

Cite this article as:
Castelló-Climent, A. J Econ Inequal (2010) 8: 293. doi:10.1007/s10888-010-9133-4

Abstract

This paper empirically investigates the effect of income and human capital inequality on economic growth in different regions of the world. In the estimation of a dynamic panel data model that controls for country-specific effects and takes into account the persistency of the inequality indicators, the results show a different effect of inequality on growth depending on the level of development of the region. Specifically, we find a negative effect of income and human capital inequality on economic growth, both in the sample as a whole and in the low and middle-income economies, an effect that vanishes or becomes positive in the higher-income countries.

Keywords

Human capital and income inequalityEconomic growthDynamic panel data model

Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  1. 1.Instituto de Economía Internacional, Facultad de EconomíaUniversidad de ValenciaValenciaSpain