It is now well-known that income inequality is hazardous to human health and a host of other social outcomes, as demonstrated by Richard Wilkinson and Kate Pickett’s book The Spirit Level and Equality Trust organization (some great resources and slides there, too).
Now a new study by the International Monetary Fund has found that higher rates of income inequality are strongly associated with shorter periods of economic growth: e.g., that greater equality is associated with more sustainable and longer-lasting economic growth.
The research paper, Inequality and Unsustainable growth: Two Sides of the Same Coin? is relatively short (20 pages) , provides robust quantitive evidence with qualitative analysis, examines reasons for this relationship and suggests some tentative policy implications.
- Polozogistics: Nine Thoughts About the Choice of the New Bank of Canada Governor (May 3rd, 2013)
- A Weak Week for Canada’s Economy (April 19th, 2013)
- Austerity through infrastructure Cuts: Budget 2013 (March 22nd, 2013)
- Boost the Minimum Wage, Boost the Economy (February 27th, 2013)
- Albert Hirschman 1915-2012 (January 27th, 2013)