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Growth, Inequality and Social Protection


  • Roman Arjona
  • Maxime Ladaique
  • Mark Pearson


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

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    References listed on IDEAS

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    10. Niko Gobbin & Glenn Rayp, 2008. "Different ways of looking at old issues: a time-series approach to inequality and growth," Applied Economics, Taylor & Francis Journals, vol. 40(7), pages 885-895.
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    14. Timothy M Smeeding, 2002. "Globalisation, Inequality and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," RBA Annual Conference Volume,in: David Gruen & Terry O'Brien & Jeremy Lawson (ed.), Globalisation, Living Standards and Inequality: Recent Progress and Continuing Challenges Reserve Bank of Australia.
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    16. 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, Social Science Research Center Berlin (WZB).
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    18. R. Schoonackers & F. Heylen, 2011. "Fiscal Policy and TFP in the OECD: A Non-Stationary Panel Approach," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/701, Ghent University, Faculty of Economics and Business Administration.
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    20. Schettkat, Ronald, 2002. "Institutions in the economic fitness landscape: What impact do welfare state institutions have on economic performance?," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-210, Social Science Research Center Berlin (WZB).
    21. W. Adrián Risso & Edgar J. Sánchez Carrera, 2012. "Inequality and economic growth in China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 5(2), pages 80-90, June.
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    23. Emanuele Baldacci & Larry Q Cui & Benedict J. Clements & Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries; Implications for Achieving the MDGs," IMF Working Papers 04/217, International Monetary Fund.
    24. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
    25. Almanzar, Miguel & Torero, Maximo, 2017. "Distributional Effects of Growth and Public Expenditures in Africa: Estimates for Tanzania and Rwanda," World Development, Elsevier, vol. 95(C), pages 177-195.

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