Inequality and Growth in a Panel of Countries


Barro, R. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth , March.
p_inequalitygrw.pdf103 KB


Evidence from a broad panel of countries shows little overall relation between income inequality and rates of growth and investment. However, for growth, higher inequality tends to retard growth in poor countries and encourage growth in richer places. The Kuznets curve—whereby inequality first increases and later decreases during the process of economic development—emerges as a clear empirical regularity. However, this relation does not explain the bulk of variations in inequality across countries or over time.


Attached: working paper version

Last updated on 08/04/2011