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Status and income inequality in a knowledge economy

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  • Baochun Peng

Abstract

This paper models a market for status contained in a knowledge economy. Technological progress favours the knowledge sector and inequality of income rises with productivity. We show that the expected utility of all agents can fall while output and productivity grow; and such an outcome of “immiserizing growth” hinges crucially upon the combination of concern for status and technology-induced rises in inequality. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Baochun Peng, 2014. "Status and income inequality in a knowledge economy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 581-595, December.
    • Handle: RePEc:kap:jecinq:v:12:y:2014:i:4:p:581-595
    DOI: 10.1007/s10888-014-9274-y
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    References listed on IDEAS

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