Innovation and top income inequality

Philippe Aghion, Ufuk Akcigit, Antonin Bergeaud, Richard Blundell () and David Hemous

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this article, we use cross-state panel and cross-U.S. commuting-zone data to look at the relationship between innovation, top income inequality and social mobility. We find positive correlations between measures of innovation and top income inequality. We also show that the correlations between innovation and broad measures of inequality are not significant. Next, using instrumental variable analysis, we argue that these correlations at least partly reflect a causality from innovation to top income shares. Finally, we show that innovation, particularly by new entrants, is positively associated with social mobility, but less so in local areas with more intense lobbying activities.

Keywords: citations; entrant; incumbents; inequality; innovation; patenting; social mobility; top income (search for similar items in EconPapers)
JEL-codes: D63 J14 J15 O30 O31 O33 O34 O40 O47 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2019-01-01
New Economics Papers: this item is included in nep-gro, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (99)

Published in Review of Economic Studies, 1, January, 2019, 86(1), pp. 1 - 45. ISSN: 0034-6527

Downloads: (external link)
http://eprints.lse.ac.uk/100356/ Open access version. (application/pdf)

Related works:
Journal Article: Innovation and Top Income Inequality (2019)
Working Paper: Innovation and Top Income Inequality (2019)
Working Paper: Innovation and Top Income Inequality (2019)
Working Paper: Innovation and Top Income Inequality (2015)
Working Paper: Innovation and Top Income Inequality (2015)
Working Paper: Innovation and Top Income Inequality (2015)
Working Paper: Innovation and Top Income Inequality (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:100356

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