IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/03068290510601153.html
   My bibliography  Save this article

Economic growth and income inequality: the case of the US

Author

Listed:
  • Yu Hsing

Abstract

Purpose - The purpose of this study is to examine the impact of income inequality on economic growth in the US. Design/methodology/approach - This paper applies the endogenous growth model including human capital and technological progress. The generalized autoregressive conditional heteroskedasticity (GARCH) technique is applied to estimate regression parameters. The number of patents granted is chosen to measure technological progress. Percentage of people 25 years old and over who have completed 4 years of college or more is selected to measure human capital. Findings - The findings show that a higher Gini index hurts economic growth. Economic growth has a positive relationship with the growth in civilian employment, investment spending, technological progress, and human capital. When three other indicators of income inequality are considered, similar conclusions can be reached. Research limitations/implications - A major implication is that a deterioration of inequality would be harmful to economic growth. Originality/value - Major contributions of the paper are to consider human capital in the model and different measures of inequality in empirical work.

Suggested Citation

  • Yu Hsing, 2005. "Economic growth and income inequality: the case of the US," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 32(7), pages 639-647, July.
    • Handle: RePEc:eme:ijsepp:03068290510601153
    DOI: 10.1108/03068290510601153
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068290510601153/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068290510601153/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/03068290510601153?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Udaya R Wagle, 2010. "Does Low Inequality Cause Low Poverty? Evidence from High‐Income and Developing Countries," Poverty & Public Policy, John Wiley & Sons, vol. 2(3), pages 29-52, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:03068290510601153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.