Social exclusion, capital accumulation and inequality

Bharat Hazari and Vijay Mohan

International Review of Economics & Finance, 2015, vol. 39, issue C, 371-375

Abstract: We construct a four-good, four-factor general equilibrium model with trade to show that, under certain conditions, capital accumulation results in: (a) the immiserization of socially excluded groups; (b) an increase in the rate of return on capital; and (c) a decrease in the wage rate of socially excluded groups. Our analysis shows why social exclusion increases inequality.

Keywords: Social exclusion; Capital accumulation; Immiserized growth; General equilibrium; Inequality (search for similar items in EconPapers)
JEL-codes: D5 F1 I3 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056015001112
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:39:y:2015:i:c:p:371-375

DOI: 10.1016/j.iref.2015.07.004

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().