NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inequality, Growth, and Investment

Robert J. Barro

NBER Working Paper No. 7038
Issued in March 1999
NBER Program(s):   EFG

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 does not explain the bulk of variations in inequality across countries or over time.

download in pdf format
   (170 K)

email paper

A non-technical summary of this paper is available in the August 1999 NBER digest.  You can sign up to receive the NBER Digest by email.

This paper is available as PDF (170 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7038

Published: Hassett, K.A. and R.G. Hubbard (eds.) Inequality and Tax Policy. AEI Press, 2001.

Users who downloaded this paper also downloaded these:
Benabou Inequality and Growth
Benabou w5658 Inequality and Growth
Banerjee and Duflo w7793 Inequality and Growth: What Can the Data Say?
Persson and Tabellini w3599 Is Inequality Harmful for Growth? Theory and Evidence
Barro w5698 Determinants of Economic Growth: A Cross-Country Empirical Study
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us