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Growth, Inequality and Social Protection

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  • Roman Arjona
  • Maxime Ladaique
  • Mark Pearson

Abstract

Economic growth is, ultimately, the result of the myriad of transactions which take place in a market economy. Similarly, the distribution of income depends on who has ownership of factors of production, how much they can sell them for, and whether the resultant income is redistributed or not. It would be surprising were economic growth and income distribution not to be linked. But how exactly they might be linked has been the topic of many competing theories and empirical evaluations. Unfortunately, the studies have not led to a convergence on a common view that there is, or is not, a trade-off between the two goals of an equitable society and a rich one. This lack of enlightenment becomes less surprising once the empirical studies are examined in detail. Many empirical studies have looked at the final distribution of income, when some of the theories make stronger predictions about the links between growth and the distribution of income before taxes and transfers; similar ... La croissance économique est, en fin de compte, la résultante des multiples transactions qui se déroulent dans une économie de marché. De même, la distribution du revenu dépend de l’identité des propriétaires des facteurs de production, du revenu qu’ils peuvent escompter de la vente de ces facteurs et du point de savoir si ce revenu est redistribué ou non. Il serait étonnant qu’il n’y ait pas de lien entre la croissance économique et la distribution du revenu. Quant à savoir quel est exactement ce lien, c’est là un thème auquel ont été consacrées maintes théories et évaluations empiriques concurrentes. Malheureusement, ces études n’ont pas permis d’aboutir à des conclusions convergentes sur le point de savoir s’il y a ou non relation inverse entre ces deux objectifs que sont une société équitable et une société riche. Cette situation apparaît moins surprenante lorsqu’on examine précisément les études réalisées. De nombreuses études empiriques considèrent la distribution finale ...

Suggested Citation

  • Roman Arjona & Maxime Ladaique & Mark Pearson, 2001. "Growth, Inequality and Social Protection," OECD Labour Market and Social Policy Occasional Papers 51, OECD Publishing.
  • Handle: RePEc:oec:elsaaa:51-en
    DOI: 10.1787/121403540472
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    4. Gerdie Everaert & Freddy Heylen & Ruben Schoonackers, 2015. "Fiscal policy and TFP in the OECD: measuring direct and indirect effects," Empirical Economics, Springer, vol. 49(2), pages 605-640, September.
    5. Roman Arjona & Maxime Ladaique, 2003. "Mark Pearson Growth, Inequality and Social Protection," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 119-140, January.
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    8. Roman Arjona & Maxime Ladaique & Mark Pearson, 2003. "Social Protection and Growth," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 7-45.
    9. Mr. Emanuele Baldacci & Mr. Benedict J. Clements & Mr. Sanjeev Gupta & Mr. Larry Q Cui, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    10. Kemmerling, Achim, 2006. "Diffusion und Interaktion in der Arbeitsmarktpolitik? Positive und negative Ansteckungseffekte am Beispiel zweier Reformdiskussionen," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-119, WZB Berlin Social Science Center.
    11. Tiiu Paas & Marit Hinnosaar & Jaan Masso & Orsolya Szirko, 2004. "Social Protection Systems In The Baltic States," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 26, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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    20. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2304, African Development Bank.
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