Income inequality is an important economic issue faced by most of the developed and developing countries. Many attempts have been made to identify a link between economic growth and income inequality in the past. However, the literature is not conclusive about the relationship between economic development and income inequality. This study attempts to analyze the factors responsible for income i...

After around twenty years of neglect, inequality has been brought out of the cold. Inequality has re-entered the mainstream development policy agenda by featuring prominently in the World Bank’s World Development Report 2000/01. Inequality matters in its own right (see Inequality Briefing No 1) and it is key to reducing poverty. This paper draws on recent research to explore in what ways inequa...

The paper revisits the debate on trickle-down growth in view of the widely discussed evolution of the earnings and income distribution that followed a massive expansion of higher education. We propose a dynamic general equilibrium model to dynamically evaluate whether economic growth triggered by an increase in public education expenditure on behalf of those with high learning ability eventuall...

This paper uses an encompassing framework developed by Murphy et al. (1991, 1993) to study corruption and how it affects income distribution and growth. We find that (1) corruption affects income distribution in an inverted U-shaped way, (2) corruption alone also explains a large proportion of the Gini differential across developing and industrial countries, and (3) that even after correcting f...

The paper analyzes the relation between growth and income inequality in the US during the post-war years (1953–2008). We show that the income of the top income groups is more sensitive to growth, defined broadly as current growth and changes in expectations of future growth, compared to the income of the lower income groups. We provide evidence that this increased sensitivity arises for two rea...

"Using the 1986/87 Household Budget Survey of Lesotho, we measure the extent of inequality, identify the determinants of economic well-being and decompose total inequality by population subgroups. The results show large inequality in economic well-being. Many households in Lesotho are heavily dependent on miners' remittances from the Republic of South Africa. In the study we quantify their effe...

one of the main goals of government is to increase economic growth and public welfare. therefore, the recognition of useful factors that facilitate achievement of this goal has critical role in economic literature. this study focuses on the effect of gender inequality on the reduction of economic growth and investigate whether gender inequality have significant effect on economic development an...