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Comments on unequal growth

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  • Gallipoli, Giovanni
Abstract
What is the relationship between income inequality and aggregate growth? Through an ingenious decomposition, Lippi and Perri cast this relationship as a function of simple moments of the distribution of changes in household income. Their study delivers new evidence linking heterogeneous micro-level income changes to macro-level growth outcomes. Faster income growth among rich households has mitigated the slowdown of aggregate growth in the US, especially after 2000. These findings bring forth questions about the origins of unequal growth and its impact on the welfare of different subsets of the population.

Suggested Citation

  • Gallipoli, Giovanni, 2023. "Comments on unequal growth," Journal of Monetary Economics, Elsevier, vol. 133(C), pages 19-24.
    • Handle: RePEc:eee:moneco:v:133:y:2023:i:c:p:19-24
    DOI: 10.1016/j.jmoneco.2022.11.011
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    References listed on IDEAS

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    More about this item

    Keywords

    Income; Earnings; Inequality; Growth;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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