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.
- Canada: World’s Next Superpower? Only If We Stop Relying On Temporary Foreign Workers (July 7th, 2015)
- Judging the Odds for an “Election Recession” (June 4th, 2015)
- Is another recession on its way? (May 30th, 2015)
- Guest Blog from Kim Pollock: Stagnation Without End (May 19th, 2015)
- Should we be taxing the rich 1% more? (May 12th, 2015)