Inequality and Growth in a Panel of Countries

Abstract

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. *This research has been supported by a grant from the National Science Foundation. An earlier version of this paper was presented at a conference at the American Enterprise Institute. I am grateful for excellent research assistance from Silvana Tenreyro and for

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@inproceedings{Barro1999InequalityAG, title={Inequality and Growth in a Panel of Countries}, author={Robert J. Barro and Silvana Tenreyro and Paul Collier and Bill Easterly and Jong-Wha Lee and Mattias Lundberg and Francisco Rodriguez and Heng-fu Zou}, year={1999} }