Income Inequality and Growth: a Panel Study of Swedish Counties 1960-2000
AbstractThis paper explores the relationship between income inequality and growth using panel data on Swedish counties from 1960-2000. Compared to standard methods of estimating this relationship yearly regional level data are used, and inequality is allowed to be endogenous. We find a significant positive impact of inequality on growth, but the magnitude of the effect decreases with the length of the growth period studied. When allowing income inequality to be endogenous, using a panel 2SLS IV estimation, we find positive effect of inequality on 1 to 5-year growth rates, when significant, whereas the effect on 10-year growth rates are not clear cut.
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Bibliographic InfoPaper provided by Institute for Futures Studies in its series Arbetsrapport with number 2005:3.
Length: 43 pages
Date of creation: Mar 2005
Date of revision:
Note: ISSN 1652-120X ISBN 91-89655-61-3
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More information through EDIRC
Income inequality; regional economic growth; panel data;
Other versions of this item:
- Nahum, Ruth-Aïda, 2005. "Income Inequality and Growth: A Panel Study of Swedish Counties 1960-2000," Working Paper Series 2005:8, Uppsala University, Department of Economics.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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