Shekhar Aiyar and Christian Ebeke, (2019), “The missing link between income inequality and economic growth: Inequality of opportunity”, VoxEU, 3 April
There are contrasting theories on the relationship between income inequality and growth, and the empirical evidence is similarly mixed. This column highlights the neglected role of equality of opportunity in mediating this relationship. Using the World Bank’s new Global Database on Intergenerational Mobility, it shows that in societies where opportunities are unequally distributed, income inequality exerts a greater drag on growth.
Relevant Posts
- Zsolt Darvas, (2018), «European income inequality begins to fall once again», Bruegel, 30 April
- Javier Cravino, Ting Lan, Andrei Levchenko, (2018), «Differences in consumption baskets across households and the distributional consequences of monetary policy», VoxEU, 16 June