Who Benefits from Growth ?

Simon Beck and Thierry Kamionka ()
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Thierry Kamionka: Crest

No 2012-18, Working Papers from Center for Research in Economics and Statistics

Abstract: In this paper we highlight the link existing between economic growth and inequality. Using the FH-DADS panel data set, resulting from the matching of Pôle Emploi (French National Employment Agency) historical database and the "Déclarations Annuelles de Données Sociales" data set (DADS), we show that inequality increases with mobility, and that mobility evolves with GDP variations. Data show indeed that inequality tends to increase during economic growth periods and to decrease during slow down, through unequal mobility between individuals. In order to explain this phenomenon, we use two structural models. One based on Jolivet, Postel-Vinay and Robin (2006) allows us to link inequality and mobility through equilibrium changes on the job market. Another one, due to Robin (2011), confirms on US data the link existing between inequality and economic growth

Keywords: Inequality; Growth; Labor market; Mobility; Panel data; Equilibrium search model (search for similar items in EconPapers)
JEL-codes: C23 D31 J60 (search for similar items in EconPapers)
Pages: 29
Date: 2012-09
New Economics Papers: this item is included in nep-fdg and nep-his
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