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Unequal opportunities, unequal growth

Marrero, Gustavo A., Rodriguez, Juan Gabriel, Van der Weide, Roy, (2017), “Unequal opportunities, unequal growth”, VoxEu, 8 February

Inequality can be both good and bad for growth. Unequal societies may be holding back one segment of the population while helping another. This column exploits US data to argue that inequality affects negatively the future income growth of the poor and positively that of the rich. This relationship is largely driven by inequality of opportunity, which limits the growth prospects at the bottom of the income distribution.

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