The Library
The effects of economic growth on income inequality in the US
Tools
Rubin, Amir and Segal, Dan (2015) The effects of economic growth on income inequality in the US. Journal of Macroeconomics, 45 . pp. 258-273. doi:10.1016/j.jmacro.2015.05.007 ISSN 0164-0704.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.jmacro.2015.05.007
Abstract
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 reasons: (a) the top income groups receive a large portion of their income from wealth, which is more sensitive to growth than labor income and (b) the top income groups receive a large portion of their labor income in the form of pay-for-performance (equity compensation), which is also sensitive to growth. Consequently, we conclude that growth and income inequality are positively associated.
Item Type: | Journal Article | ||||||||
---|---|---|---|---|---|---|---|---|---|
Divisions: | Faculty of Social Sciences > Warwick Business School > Accounting Faculty of Social Sciences > Warwick Business School |
||||||||
Journal or Publication Title: | Journal of Macroeconomics | ||||||||
Publisher: | Elsevier BV * North-Holland | ||||||||
ISSN: | 0164-0704 | ||||||||
Official Date: | September 2015 | ||||||||
Dates: |
|
||||||||
Volume: | 45 | ||||||||
Page Range: | pp. 258-273 | ||||||||
DOI: | 10.1016/j.jmacro.2015.05.007 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |