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Does Growth Affect the Nature of Inequality? Ireland 1994–2001 Author info | Abstract | Publisher info | Download info | Related research | Statistics Doris, Aedin () (National University of Ireland, Maynooth)
O'Neill, Donal () (National University of Ireland, Maynooth)
Sweetman, Olive () (National University of Ireland, Maynooth)
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Much has been written about the relationship between economic growth and aggregate inequality in recent years. In this paper we extend this literature by examining whether economic growth affects, not the level, but rather the nature of inequality. To do this we focus on the Irish economy which experienced a remarkable boom starting in 1994. We analyse the covariance structure of earnings in Ireland to examine whether this rapid growth affected earnings dynamics over the period. Using panel data for the years 1994–2001, we show that, while permanent inequality in Ireland is high, the degree of persistence of inequality was not significantly affected by the rapid growth in the economy.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3701.
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Length: 33 pages
Date of creation: Sep 2008Date of revision:
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Keywords: permanent and transitory inequality ; Other versions of this item:
Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports :
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