Growth with Heterogeneous Households

Wei-Bin Zhang

Chapter 4 in Economic Growth with Income and Wealth Distribution, 2006, pp 174-208 from Palgrave Macmillan

Abstract: Abstract One dominant view on the interplay between growth and inequality holds that income inequality promotes saving and therefore promotes development. This opinion is closely related to the view that saving is the engine of growth. Lewis (1954: 156–57) expounds this view as follows: We are interested not in the people in general, but only say in the 10 percent of them with the largest incomes. … The remaining 90 percent of the people never manage to save a significant fraction of their incomes. … Saving increases relatively to the national income because the incomes of the savers increase relatively to the national income. The central fact of economic development is that the distribution of income is altered in favour of the saving class.

Keywords: Human Capital; Equilibrium Point; Income Inequality; Wage Rate; Skilled Labor (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-50633-6_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230506336

DOI: 10.1057/9780230506336_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().