Inequality and Growth.

Joshua Gans has a new paper out with Dan Andrews and Christopher Jencks, on the relationship between inequality and growth.

We reach a finding that is pretty standard in this literature – when we restrict the sample to 1960-2000, more inequality seems to be good for growth. However, if the inequality arises from a transfer from the bottom 90% to the top 10%, we’re skeptical that the bottom 90% get enough back in growth to make up for their loss in share.

[Core Economics]

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