Measures of Income Distribution and Economic Growth

Pak-Hung Mo

Journal of Income Distribution, 2011, vol. 20, issue 3-4, 24-42

Abstract: In this study, the empirical contents of various income inequality measures are compared under an identical framework with a well-tested data set. Our study suggests that long-term income inequality has a strong negative effect on Gross Domestic Product (GDP) growth under different measurements. Moreover, governments should investigate further into changes in the income size of the middle class as an indicator for potential changes in social stability, investment, and GDP growth, besides focusing on the Gini coefficient, which they predominantly do now.

Keywords: income distribution; economic growth (search for similar items in EconPapers)
JEL-codes: O15 O31 (search for similar items in EconPapers)
Date: 2011
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