publication . Article . Other literature type . 1998

New ways of looking at old issues: inequality and growth

Deininger, Klaus; Squire, Lyn;
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  • Published: 01 Jan 1998 Journal: Journal of Development Economics, volume 57, pages 259-287 (issn: 0304-3878, Copyright policy)
  • Publisher: Elsevier BV
Abstract
Abstract The paper uses new cross-country data on income and asset (land) distribution to show that (i) there is a strong negative relationship between initial inequality in the asset distribution and long-term growth; (ii) inequality reduces income growth for the poor, but not for the rich; and (iii) available longitudinal data provide little support for the Kuznets hypothesis. Policies that increase aggregate investment and facilitate acquisition of assets by the poor might thus be doubly beneficial for growth and poverty reduction.
Subjects
Medical Subject Headings: health care economics and organizations
free text keywords: Economics and Econometrics, Development, Inequality, media_common.quotation_subject, media_common, Income inequality metrics, Income growth, Poverty reduction, Economics, Income distribution, Poverty, Negative relationship, Growth inequality, Public economics, Microeconomics, Labour economics
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