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.
- More on Secular Stagnation (February 28th, 2014)
- The Entrepreneurial State (October 12th, 2013)
- What happened to the recovery? (October 3rd, 2013)
- The Blackberry mess and what Canada needs (September 24th, 2013)
- Polozogistics: Nine Thoughts About the Choice of the New Bank of Canada Governor (May 3rd, 2013)