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.
- Low Oil Prices, Good or Bad for Canada? (January 14th, 2015)
- Louis-Philippe Rochon’s Top 10 Economic Predictions for 2015 (January 11th, 2015)
- Five Good Economic Developments in 2014 (January 5th, 2015)
- Bank of Canada, Exports, and LMI (October 23rd, 2014)
- Who’s afraid of free trade with Europe? (September 25th, 2014)