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Inequality and Economic Growth: the Empirical Relationship Reconsidered in the Light of Comparable Data

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  • Stephen Knowles

Abstract

All of the recent empirical work on the relationship between income inequality and economic growth has used inequality data that are not consistently measured. This paper argues that this is inappropriate and shows that the significant negative correlation often found between income inequality and growth across countries is not robust when income inequality is measured in a consistent manner, using data from the World Income Inequality Database.

Suggested Citation

  • Stephen Knowles, 2001. "Inequality and Economic Growth: the Empirical Relationship Reconsidered in the Light of Comparable Data," WIDER Working Paper Series DP2001-128, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2001-128
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