Inequality and Innovativeness
AbstractIn this note, we construct two theoretical models that analyze the relationship between inequality of access and rates of innovation as well as correlative data that show a negative correlation between income inequality and levels of innovativeness. Our two models suggest that unequal access to problems slows innovation by reducing the level and variety of human capital applied to problems. More interestingly, both models show that the rate of innovation decline becomes much more pronounced as problems become more difficult. Thus, the costs of inequality may be increasing as the problems that societies face become more challenging.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 33 (2013)
Issue (Month): 1 ()
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Diversity; Inequality; Innovation; Problem Solving;
Find related papers by JEL classification:
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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