Income Inequality and Growth: A Panel Study of Swedish Counties 1960-2000

Ruth-Aida Nahum ()

No 2005:8, Working Paper Series from Uppsala University, Department of Economics

Abstract: This paper explores the relationship between income inequality and growth using panel data on Swedish counties from 1960-2000. Compared to standard methods of estimating this relationship yearly regional level data are used, and inequality is allowed to be endogenous. We find a significant positive impact of inequality on growth, but the magnitude of the effect decreases with the length of the growth period studied. When allowing income inequality to be endogenous, using a panel 2SLS IV estimation, we find positive effect of inequality on 1 to 5-year growth rates, when significant, whereas the effect on 10-year growth rates are not clear cut.

Keywords: Income inequality; regional economic growth; panel data (search for similar items in EconPapers)
JEL-codes: D31 O15 O40 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005-03-08
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Income Inequality and Growth: a Panel Study of Swedish Counties 1960-2000 (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2005_008

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