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Who Benefits from Growth ?

Author

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  • Simon Beck

    (Crest)

  • Thierry Kamionka

    (Crest)

Abstract

In this paper we highlight the link existing between economic growth and inequality. Using the FH-DADS panel data set, resulting from the matching of Pôle Emploi (French National Employment Agency) historical database and the "Déclarations Annuelles de Données Sociales" data set (DADS), we show that inequality increases with mobility, and that mobility evolves with GDP variations. Data show indeed that inequality tends to increase during economic growth periods and to decrease during slow down, through unequal mobility between individuals. In order to explain this phenomenon, we use two structural models. One based on Jolivet, Postel-Vinay and Robin (2006) allows us to link inequality and mobility through equilibrium changes on the job market. Another one, due to Robin (2011), confirms on US data the link existing between inequality and economic growth

Suggested Citation

  • Simon Beck & Thierry Kamionka, 2012. "Who Benefits from Growth ?," Working Papers 2012-18, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2012-18
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; Growth; Labor market; Mobility; Panel data; Equilibrium search model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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