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Who Benefits from Growth ?

Author

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  • Simon Beck

    () (Crest)

  • Thierry Kamionka

    () (Crest)

Abstract

In this paper we highlight the link existing between economic growth and inequality. Using the FH-DADS panel data set, resulting from the matching of Pôle Emploi (French National Employment Agency) historical database and the "Déclarations Annuelles de Données Sociales" data set (DADS), we show that inequality increases with mobility, and that mobility evolves with GDP variations. Data show indeed that inequality tends to increase during economic growth periods and to decrease during slow down, through unequal mobility between individuals. In order to explain this phenomenon, we use two structural models. One based on Jolivet, Postel-Vinay and Robin (2006) allows us to link inequality and mobility through equilibrium changes on the job market. Another one, due to Robin (2011), confirms on US data the link existing between inequality and economic growth

Suggested Citation

  • Simon Beck & Thierry Kamionka, 2012. "Who Benefits from Growth ?," Working Papers 2012-18, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2012-18
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    References listed on IDEAS

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    1. Buchinsky, Mosche & Fields, Gary S & Fougère, Denis & Kramarz, Francis, 2003. "Francs or Ranks? Earnings Mobility in France, 1967-1999," CEPR Discussion Papers 3937, C.E.P.R. Discussion Papers.
    2. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    3. Galor, Oded & Tsiddon, Daniel, 1997. "Technological Progress, Mobility, and Economic Growth," American Economic Review, American Economic Association, vol. 87(3), pages 363-382, June.
    4. J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Oxford University Press, vol. 38(2), pages 175-208.
    5. Jean‐Marc Robin, 2011. "On the Dynamics of Unemployment and Wage Distributions," Econometrica, Econometric Society, vol. 79(5), pages 1327-1355, September.
    6. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters,in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92 National Bureau of Economic Research, Inc.
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    8. Fane Groes & Philipp Kircher & Iourii Manovskii, 2015. "The U-Shapes of Occupational Mobility," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 659-692.
    9. Frank A. Cowell, 1985. "Measures of Distributional Change: An Axiomatic Approach," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 135-151.
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    11. 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.
    12. J. Luis Guasch & Jean-Jacques Laffont & Stéphane Straub, 2007. "Concessions of infrastructure in Latin America: Government-led renegotiation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1267-1294.
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    More about this item

    Keywords

    Inequality; Growth; Labor market; Mobility; Panel data; Equilibrium search model;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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