Inequality and Economic Growth

Sarah Voitchovsky

in The Oxford Handbook of Economic Inequality

Published in print February 2011 | ISBN: 9780199606061
Published online September 2012 | | DOI:

Series: Oxford Handbooks in Economics

 Inequality and Economic Growth

More Like This

Show all results sharing these subjects:

  • Economics
  • Labour and Demographic Economics
  • Economic Development and Growth


Show Summary Details


This article reveals a complex and multi-dimensional effect of inequality on growth. The theoretical literature suggests that inequality can both facilitate and retard growth. Furthermore, most of the positive mechanisms can be linked to inequality at the top end of the distribution while many of the detrimental effects can be traced to bottom-end inequality, or to high overall inequality. The ultimate effect of inequality on the economy will therefore depend on the relative strengths of the positive and negative influences that are identified. In theory, this balance will be affected by the overall level of inequality in a country, together with the strength of its institutions. Additionally, different levels of inequality may be conducive to growth at different levels of development.

Keywords: growth; inequality; institutions; positive influences; negative influences

Article.  11338 words. 

Subjects: Economics ; Labour and Demographic Economics ; Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.