Is Income Inequality Endogenous in Regional Growth?
AbstractThis study focuses on testing the relationship between income inequality and growth within U.S. counties, and the channels through which such effects are observed. Based on a system of equations estimation, the empirical results confirm the hypotheses that income inequality has a growth dampening effect; income inequality is endogenous to regional growth and growth adjustment; and the channels through which income inequality determines growth are regional growth adjustments, such as migration and regional adjustment in job and income growth. Results have numerous policy implications to the extent that: (1) that income inequality is endogenous, its equilibrium level can be internally determined within a regional growth process; (2) traditional income inequality mitigating policies have indirect effect on overall regional growth, they may have unintended indirect effects on income inequality; and (3) regional growth adjustment also equilibrates income inequality, such forces can be utilized as policy instruments to mitigate income inequality, and its growth dampening effects hence forth.
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 Regional Research Institute, West Virginia University in its series Working Papers with number 200901.
Length: 20 pages
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: 886 Chestnut Ridge Road, P.O. Box 6825, Morgantown, WV 26506-6825
Phone: 304 293 2896
Fax: 304 293 6699
Web page: http://rri.wvu.edu/research/working-papers/
More information through EDIRC
income inequality; growth; regional economics;
Other versions of this item:
- Yohannes G. Hailu & Mulugeta S. Kahsai & Tesfa G. Gebremedhin & Randall W. Jackson, 2011. "Is Income Inequality Endogenous In Regional Growth?," Journal of Income Distribution, Journal of Income Distribution, vol. 20(3-4), pages 43-56, September.
- Hailu, Yohannes G. & Kahsai, Mulugeta S. & Gebremedhin, Tesfa G. & Jackson, Randall W., 2009. "Is Income Inequality Endogenous in Regional Growth?," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46320, Southern Agricultural Economics Association.
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
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.:
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Persson, Torsten & Tabellini, Guido, 1994.
"Is Inequality Harmful for Growth?,"
American Economic Review,
American Economic Association, vol. 84(3), pages 600-621, June.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Hongyi Li & Heng-fu Zou, 1998.
"Income Inequality Is Not Harmful for Growth: Theory and Evidence,"
CEMA Working Papers
74, China Economics and Management Academy, Central University of Finance and Economics.
- Li, Hongyi & Zou, Heng-fu, 1998. "Income Inequality Is Not Harmful for Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 2(3), pages 318-34, October.
- Banerjee, Abhijit V & Duflo, Esther, 2003.
" Inequality and Growth: What Can the Data Say?,"
Journal of Economic Growth,
Springer, vol. 8(3), pages 267-99, September.
- Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
- Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999.
"Inequality and Economic Growth: The Perspective of the New Growth Theories,"
Economics Papers from University Paris Dauphine
123456789/10091, Paris Dauphine University.
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999. "Inequality and economic growth: the perspective of the new growth theories," CEPREMAP Working Papers (Couverture Orange) 9908, CEPREMAP.
- Mills, Edwin S. & Price, Richard, 1984. "Metropolitan suburbanization and central city problems," Journal of Urban Economics, Elsevier, vol. 15(1), pages 1-17, January.
- Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Randall Jackson).
If references are entirely missing, you can add them using this form.