All Types of Inequality are Not Created Equal: Divergent Impacts of Inequality on Economic Growth
AbstractEvidence of an increase in various forms of inequality since the 1970s has motivated research on its relationship to growth and development. The findings of that research are contradictory and inconclusive. One source of these divergent results is that researchers rely on different group measures of inequality. Inequality by gender, household, class, and ethnicity may produce divergent effects on growth since they operate on macroeconomic outcomes via alternative pathways. Further, even within groups, the effect of inequality on growth depends on the measure used. For example, inequalities in capabilities (such as education and health status) may operate differently on growth than inequality in wages and income. This paper explores the different conceptual approaches to measuring between-group and within-group inequality and delineates the sometimes contradictory pathways by which these measures affect economic growth and development. The typology is applied to the cases of East Asia and Latin America.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_433.
Date of creation: Dec 2005
Date of revision:
Contact details of provider:
Web page: http://www.levyinstitute.org
Other versions of this item:
- Stephanie Seguino, 2005. "All types of inequality are not created equal: divergent impacts of inequality on economic growth," Working Papers 10, ECINEQ, Society for the Study of Economic Inequality, revised Oct 2005.
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-11 (All new papers)
- NEP-DEV-2006-03-11 (Development)
- NEP-SEA-2006-03-11 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lundberg, Shelly & Pollak, Robert A, 1993.
"Separate Spheres Bargaining and the Marriage Market,"
Journal of Political Economy,
University of Chicago Press, vol. 101(6), pages 988-1010, December.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Discussion Papers in Economics at the University of Washington 91-08, Department of Economics at the University of Washington.
- Seguino, Stephanie, 2007.
"Is more mobility good?: Firm mobility and the low wage-low productivity trap,"
Structural Change and Economic Dynamics,
Elsevier, vol. 18(1), pages 27-51, March.
- Stephanie Seguino, 2005. "Is More Mobility Good? Firm Mobility and the Low Wage -- Low Productivity Trap," Economics Working Paper Archive wp_423, Levy Economics Institute, The.
- Stephanie Seguino, 2005. "Is More Mobility Good? Firm Mobility and the Low Wage-Low Productivity Trap," International Trade 0505008, EconWPA.
- Alesina, Alberto F & Rodrik, Dani, 1991.
"Distributive Politics and Economic Growth,"
CEPR Discussion Papers
565, C.E.P.R. Discussion Papers.
- Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
- Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
- Dutt, Amitava Krishna, 1984. "Stagnation, Income Distribution and Monopoly Power," Cambridge Journal of Economics, Oxford University Press, vol. 8(1), pages 25-40, March.
- José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
- Barbara Bergmann, 1995. "Becker's theory of the family: Preposterous conclusions," Feminist Economics, Taylor & Francis Journals, vol. 1(1), pages 141-150.
- Amsden, Alice H., 1992. "Asia's Next Giant: South Korea and Late Industrialization," OUP Catalogue, Oxford University Press, number 9780195076035.
- Barro, Robert J & Lee, Jong-Wha, 2001.
"International Data on Educational Attainment: Updates and Implications,"
Oxford Economic Papers,
Oxford University Press, vol. 53(3), pages 541-63, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
- Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank.
- Easterly, W & Levine, R, 1996.
"Africa's Growth Tragedy : Policies and Ethnic Divisions,"
536, Harvard - Institute for International Development.
- Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
- Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
- Darity, William Jr., 1995. "The formal structure of a gender-segregated low-income economy," World Development, Elsevier, vol. 23(11), pages 1963-1968, November.
- Galor, Oded & Zeira, Joseph, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(1), pages 35-52, January.
- Roed, Knut, 1996. "Unemployment Hysteresis--Macro Evidence from 16 OECD Countries," Empirical Economics, Springer, vol. 21(4), pages 589-600.
- Markus Knell, .
"Social Comparisons, Inequality, and Growth,"
IEW - Working Papers
005, Institute for Empirical Research in Economics - University of Zurich.
- Markus Knell, 1999. "Social Comparisons, Inequality, and Growth," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(4), pages 664-, December.
- Stephen Knowles & Paula K. Lorgelly, 2002. "Are educational gender gaps a brake on economic development? Some cross-country empirical evidence," Oxford Economic Papers, Oxford University Press, vol. 54(1), pages 118-149, January.
- Floro, Maria & Seguino, Stephanie, 2002. "Gender effects on aggregate saving: A Theoretical and Empirical Analysis," MPRA Paper 6541, University Library of Munich, Germany, revised Dec 2000.
- Stephanie Seguino & Maria Sagrario Floro, 2003. "Does Gender have any Effect on Aggregate Saving? An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(2), pages 147-166.
- Dani Rodrik, 1998.
"Where Did All The Growth Go? External Shocks, Social Conflict, and Growth Collapses,"
NBER Working Papers
6350, National Bureau of Economic Research, Inc.
- Rodrik, Dani, 1999. " Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
- Rodrik, Dani, 1998. "Where Did all the Growth Go? External Shocks, Social Conflict and Growth Collapses," CEPR Discussion Papers 1789, C.E.P.R. Discussion Papers.
- Adalmir Marquetti, 2004. "Do Rising Real Wages Increase The Rate Of Labor-Saving Technical Change? Some Econometric Evidence," Metroeconomica, Wiley Blackwell, vol. 55(4), pages 432-441, November.
- Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Oxford University Press, vol. 14(4), pages 375-93, December.
- Elissa Braunstein, 2000.
"Engendering Foreign Direct Investment: Family Structure, Labor Markets, and International Capital Mobility,"
ps10, Political Economy Research Institute, University of Massachusetts at Amherst.
- Braunstein, Elissa, 2000. "Engendering Foreign Direct Investment: Family Structure, Labor Markets and International Capital Mobility," World Development, Elsevier, vol. 28(7), pages 1157-1172, July.
- Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR & CES & MSH, vol. 16(32), pages 127-166, 04.
- James K. Galbraith & Hyunsub Kum, 2005. "Estimating The Inequality Of Household Incomes: A Statistical Approach To The Creation Of A Dense And Consistent Global Data Set," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 115-143, 03.
- Bina Agarwal, 1997. "''Bargaining'' and Gender Relations: Within and Beyond the Household," Feminist Economics, Taylor & Francis Journals, vol. 3(1), pages 1-51.
- William Darity & Ashwini Deshpande, 2000. "Intergroup Economic Inequality Across Countries: An lntroductory Essay," Review of Social Economy, Taylor & Francis Journals, vol. 58(3), pages 273-276.
- Gregory N. Price, 2003. "Economic Growth in a Cross-section of Nonindustrial Countries: Does Colonial Heritage Matter for Africa?," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 478-495, 08.
- Erturk, Korkut & Darity, William Jr., 2000. "Secular Changes in the Gender Composition of Employment and Growth Dynamics in the North and the South," World Development, Elsevier, vol. 28(7), pages 1231-1238, July.
- M. Anne Hill & Elizabeth King, 1995. "Women's education and economic well-being," Feminist Economics, Taylor & Francis Journals, vol. 1(2), pages 21-46.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
- Wendy Cunningham & Joyce P. Jacobsen, 2003. "Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Latin America," Wesleyan Economics Working Papers 2003-001, Wesleyan University, Department of Economics.
- Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
- William Darity, Jr. & Arthur H. Goldsmith, 1993. "Unemployment, Social Psychology, and Unemployment Hysteresis," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 16(1), pages 55-71, October.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Boschini, Anne, 2003. "The impact of gender stereotypes on economic growth," Research Papers in Economics 2003:4, Stockholm University, Department of Economics.
- Erturk, Korkut & Cagatay, Nilufer, 1995. "Macroeconomic consequences of cyclical and secular changes in feminization: An experiment at gendered macromodeling," World Development, Elsevier, vol. 23(11), pages 1969-1977, November.
- Knowles, Stephen & Owen, P Dorian, 1997. "Education and Health in an Effective-Labour Empirical Growth Model," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 314-28, December.
- Blecker, Robert A & Seguino, Stephanie, 2002. "Macroeconomic Effects of Reducing Gender Wage Inequality in an Export-Oriented, Semi-industrialized Economy," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 103-19, February.
- Folbre, Nancy, 1986. "Hearts and spades: Paradigms of household economics," World Development, Elsevier, vol. 14(2), pages 245-255, February.
- Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
- Edward Nissan & George Carter, 2012. "Social identity and schooling inequality," Journal of Economics and Finance, Springer, vol. 36(1), pages 190-200, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards).
If references are entirely missing, you can add them using this form.