Inequality and Creative Destruction

Richard Blundell (), Xavier Jaravel and Otto Toivanen

No 16867, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this article we review recent evidence showing how market forces and policies shape the rate and direction of innovation, with various implications for inequality. First, we characterize several market mechanisms whereby higher rates of innovation lead to higher inequality. Second, we highlight channels whereby inequality acts as an impediment to innovation and growth. Third, we highlight policies that can help achieve better outcomes for both innovation and inequality. We show that two types of policies, which are not traditionally viewed as part of innovation policy, play a key role to achieve the goal of enhancing innovation while reducing inequality: education and competition policy.

Date: 2022-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16867 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:16867

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16867

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().