EconPapers    
Economics at your fingertips  
 

Inequality and growth: industry-level evidence

Lisardo Erman () and Daniel Marcel Kaat ()
Additional contact information
Lisardo Erman: Osnabrück University
Daniel Marcel Kaat: Osnabrück University

Journal of Economic Growth, 2019, vol. 24, issue 3, 283-308

Abstract: Abstract 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.

Keywords: Inequality-growth nexus; Human capital; Physical capital (search for similar items in EconPapers)
JEL-codes: E22 J24 O11 O15 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10887-019-09169-z Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:jecgro:v:24:y:2019:i:3:d:10.1007_s10887-019-09169-z

Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10887/PS2

Access Statistics for this article

Journal of Economic Growth is currently edited by Oded Galor

More articles in Journal of Economic Growth from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:kap:jecgro:v:24:y:2019:i:3:d:10.1007_s10887-019-09169-z