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Growth volatility and income inequality: asymmetric analysis for France

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  • Sudeshna Ghosh

Abstract

The present study attempts to investigate the growth volatility and the income inequality association for one major OECD country of the European Union, namely France over the period 1970-2016. The paper adopts empirical time series techniques. The paper applies the nonlinear ARDL method of Shin et al. (2014) because this will enable to find the asymmetries in the relation. It is argued that the rate at which income inequality reacts to rising income volatility may not be equal to the degree of responsiveness to the decline in the volatility of income. The hypothesis of positive asymmetric impact of economic growth on the top income shares is empirically established in this analysis. The paper makes a novel attempt to study how inequality is impacted by growth volatility in France by adopting an asymmetric framework. A series of robustness measures have been adopted to check for the consistency of the approach.

Suggested Citation

  • Sudeshna Ghosh, 2021. "Growth volatility and income inequality: asymmetric analysis for France," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 24(1), pages 21-42.
    • Handle: RePEc:ids:gbusec:v:24:y:2021:i:1:p:21-42
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