Trends in Income Inequality and Its Impact on Economic Growth

Reka Vitkovics ()
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Reka Vitkovics: ESIC Business & Marketing School

Financial and Economic Review, 2023, vol. 22, issue 4, 136-159

Abstract: In recent years, climate change and the pandemic have brought the issue of the link between inequality and economic growth to the fore. In my essay, I examine this relationship, focusing on whether inequality has a positive or negative effect on economic growth. I approach the issue through the lens of income inequality without seeking to explore all aspects of inequality. Starting from the relevant conceptual framework, I present the link between global inequality and long-term growth. Since inequalities affect both developed and developing countries, I compare them and show why the latter cannot repeat the economic progress achieved by earlier industrialisers. Finally, I conclude that the clear objective should be to reduce excessive inequalities.

Keywords: social inequality; income inequality; income distribution; economic growth (search for similar items in EconPapers)
JEL-codes: B55 D63 F63 O15 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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