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Conditional and unconditional inequality and growth relationships

Almas Heshmati ()

Applied Economics Letters, 2006, vol. 13, issue 14, 925-931

Abstract: This study tests the conditional and unconditional relationship between income inequality and growth in the post-Second World War period using WIDER inequality database. Regression results suggest that income inequality is declining over time. Inequality is also declining in growth of income. There is a significant regional heterogeneity in the levels and development of inequality over time. The Kuznets hypothesis represents a global U-shape relationship between inequality and growth.

Date: 2006
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DOI: 10.1080/13504850500401809

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