Inequality and productive structure: New evidence at the world level

Veronica Amarante, Bibiana Lanzilotta and Joaquín Torres

No wp-2023-9, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper investigates the evolution of the productive structure around the world and the role it plays in the difference in inequality levels, using panel data for the period from 1995 to 2018. We approximate a country's productive structure through the Economic Complexity Index. Our results indicate that income inequality at the world level is not linearly related to economic complexity. Instead, our results indicate that, when the levels of complexity of the economy are very low, increases in complexity mainly lead to an increase in economic inequality.

Keywords: Income inequality; Structure of production; Economic complexity; Panel data (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-hme
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Citations: View citations in EconPapers (2)

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