Social Sciences
4 years ago

Inequality data inconsistencies challenge negative correlation between income inequality and growth.

RePEc: Research Papers in Economics
Inequality and Economic Growth: the Empirical Relationship Reconsidered in the Light of Comparable Data
Stephen Knowles

Paper Summary

Income inequality and economic growth are often thought to have a negative relationship, but this may not be true when using consistent data. By analyzing information from the World Income Inequality Database, it was found that the commonly observed negative correlation between income inequality and growth in different countries is not reliable.

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