IDEAS home Printed from
   My bibliography  Save this article

Economic growth and its effect on income distribution


  • Ben-David Nissim


Purpose - The main aim of this paper is to examine the effect of economic growth on worker mobility and the effect of this mobility on income distribution. Design/methodology/approach - The paper develops an overlapping generation model with multiple categories of labor. In order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis, an example and a simulation were presented. Findings - The analysis demonstrates that, as capital stock increase, workers are mobilized up to better jobs, their income grows and income distribution becomes more equalized. Research limitations/implications - Endogenous technological improvement and population growth might also be added to the discussion, but at the price of a more complicated model. Discussion on these issues showed be left for future research. Practical implications - The effect of tax policy can be easily added to the model and to the discussion. Originality/value - This paper extended the overlapping generation model to include different types of individuals. The importance of the paper is in its ability to analyze the changes in the income of various categories of workers along the growth path of the economy.

Suggested Citation

  • Ben-David Nissim, 2007. "Economic growth and its effect on income distribution," Journal of Economic Studies, Emerald Group Publishing, vol. 34(1), pages 42-58, January.
  • Handle: RePEc:eme:jespps:v:34:y:2007:i:1:p:42-58

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Economic growth; Income; Employees;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:34:y:2007:i:1:p:42-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.