Inequality is bad for growth of the poor (but not for that of the rich)

Branko L. Milanovic, Roy Van Der Weide, Branko L. Milanovic and Roy Van Der Weide
Authors registered in the RePEc Author Service: Roy van der Weide () and Branko Milanovic

No 6963, Policy Research Working Paper Series from The World Bank

Abstract: The paper assesses the impact of overall inequality, as well as inequality among the poor and among the rich, on the growth rates along various percentiles of the income distribution. The analysis uses micro-census data from U.S. states covering the period from 1960 to 2010. The paper finds evidence that high levels of inequality reduce the income growth of the poor and, if anything, help the growth of the rich. When inequality is deconstructed into bottom and top inequality, the analysis finds that it is mostly top inequality that is holding back growth at the bottom.

Keywords: Educational Sciences; Inequality; Poverty Reduction Strategies; Labor Markets (search for similar items in EconPapers)
Date: 2014-07-01
New Economics Papers: this item is included in nep-gro
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Inequality is Bad for Growth of the Poor (but Not for That of the Rich) (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:6963

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