Occupational Choice and the Growth-Inequality Relationship
AbstractThis paper examines the impact of education and occupational choice on the growth-inequality relationship. Occupations that play asymmetric roles in the production process are distinguished. The dynamic evolution of the detrended distribution of income is characterized and shown to converge to an endogenous, non-degenerate, stationary distribution. The long-run growth rate converges to a simple function of stuctural and fiscal parameters and the Lorenz curve describing long-run inequality. The impact of government policy on the growth-inequality relationship and welfare is assessed. The analysis is sensitive to whether we consider the short- or long- run effects and to whether redistribution takes place via taxation, expenditure or fiscal incentive schemes.
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Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number lloydell-95-02.
Length: 41 pages
Date of creation: 10 Jul 1995
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Find related papers by JEL classification:
- E0 - Macroeconomics and Monetary Economics - - General
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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