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Why might the rich be indifferent to income growth of their own countries?

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  • Milanovic, Branko

Abstract

The paper shows using empirical evidence from more than 100 countries’ household surveys, that income gains that the rich can realize through a more unequal distribution are often much larger than the realistic gains from a distribution-neutral growth. The rich are thus more likely to support policies that increase inequality than be concerned about income growth of their countries.

Suggested Citation

  • Milanovic, Branko, 2016. "Why might the rich be indifferent to income growth of their own countries?," Economics Letters, Elsevier, vol. 147(C), pages 108-111.
    • Handle: RePEc:eee:ecolet:v:147:y:2016:i:c:p:108-111
    DOI: 10.1016/j.econlet.2016.08.027
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    References listed on IDEAS

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    1. Roy van der Weide & Branko Milanovic, 2018. "Inequality is Bad for Growth of the Poor (but Not for That of the Rich)," The World Bank Economic Review, World Bank, vol. 32(3), pages 507-530.
    2. Milanovic, Branko, 2007. "Where in the world are you? Assessing the importance of circumstance and effort in a world of different mean country incomes and (almost) no migration," MPRA Paper 3420, University Library of Munich, Germany.
    3. Branko Milanovic, 2015. "Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 452-460, May.
    4. Anton Korinek & Johan Mistiaen & Martin Ravallion, 2006. "Survey nonresponse and the distribution of income," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 33-55, April.
    5. Palma, J.G., 2011. "Homogeneous middles vs. heterogeneous tails, and the end of the ‘Inverted-U’: the share of the rich is what it's all about," Cambridge Working Papers in Economics 1111, Faculty of Economics, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Income distribution; Top 1%; Inequality;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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