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Understanding the relationship between poverty, inequality and growth: a review of existing evidence

Mcknight, Abigail (2019) Understanding the relationship between poverty, inequality and growth: a review of existing evidence. CASEpapers (216). Centre for Analysis of Social Exclusion, London School of Economics and Political Science, London, UK.

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Abstract

This paper reviews the theoretical literature and empirical evidence on the relationship between poverty, inequality and economic growth. It finds evidence that economic inequality is good for growth as well as new convincing evidence that inequality is bad for growth. Variation in data quality, methodologies, the range of countries included in different studies makes it difficult to compare the evidence. A recent hypothesis that the relationship between inequality and growth might be non-linear, with very low and very high levels of inequality being harmful to growth but a range in between where the relationship is not clearly defined might provide a means to unify some of the conflicting findings.

Item Type: Monograph (Working Paper)
Official URL: https://sticerd.lse.ac.uk/CASE/_new/publications/C...
Additional Information: © 2019 The Author
Divisions: Centre for Analysis of Social Exclusion
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence
Date Deposited: 18 Feb 2020 10:06
Last Modified: 12 Jun 2020 23:11
URI: http://eprints.lse.ac.uk/id/eprint/103458

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