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.
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Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_433.
Date of creation: Dec 2005
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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, 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)
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