Inequality and economic growth: The perspective of the new growth theories

Journal of Economic Literature

Volumn 37, Issue 4, 1999, Pages 1615-1660

  Aghion, Philippe ^c   Caroli, Eve ^a   García Peñalosa, Cecilia ^b  

^a CEPREMAP   (France)

^b Centre National de la Recherche Scientifique   (France)

^c NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0008896494     PISSN: 00220515     EISSN: None     Source Type: Journal    
DOI: 10.1257/jel.37.4.1615     Document Type: Review

References (133)

1. Acemoglu, Daron. 1996. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," CEPR Discussion Paper 1459.
2. _. 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," Quart. J. Econ., 113:4, pp. 1055-89
3. Acemoglu, Daron and Andrew Newman. 1997. "The Labor Market and Corporate Structure," MIT Working Paper 97/08.
4. Adelman, Irma and Cynthia T. Morris. 1973. Economic Growth and Social Equity in Developing Countries. Stanford: Stanford U. Press.
5. Aghion, Philippe; Philippe Bacchetta, and Abhijit Banerjee. 1998. "Capital Markets and the Instability of Open Economies," mimeo, University College, London.
6. Aghion, Philippe; Abhijit Banerjee, and Thomas Piketty. 1997. "Dualism and Macroeconomic Volatility" mimeo, University College, London.
7. Aghion, Philippe and Patrick Bolton. 1997. "A Trickle-Down Theory of Growth and Development with Debt Overhang," Rev. Econ. Stud., 64:2, pp. 151-62.
8. Aghion, Philippe and Peter Howitt. 1998. Endogenous Growth Theory. Cambridge: MIT Press.
9. Aghion, Philippe; Peter Howitt, and Gianluca Violante. 1998. "Technology, Knowledge and Inequality," mimeo, University College, London.
10. Aghion, Philippe and Jean Tirole. 1997. "Formal and Real Authority in Organizations." J. Polit. Econ. 105:1, pp. 1-29.
11. Aguirregabriria, Victor and Cesar Alonso-Borrego. 1997. "Employment Occupational Structure, Technological Capital and Reorganisation of Production," Universidad Carlos III de Madrid, Working Paper 97-12.
12. Alesina, Alberto and Roberte Perotti. 1996. "Income Distribution, Political Instability, and Investment," Europ. Econ. Rev., 40:6, pp. 1203-28.
13. Alesina, Alberto and Dani Rodrik. 1994. "Distributive Politics and Economic Growth," Quart. J. Econ., 109:2, pp. 465-90.
14. Anand, Sudhir and S. M. Ravi Kanbur. 1993. "The Kuznets Process and the Inequality-Development Relationship," J. Devel. Econ., 40:1, pp. 25-52.
15. Atkinson, Anthony B. 1996. "Seeking to Explain the Distribution of Income," in New Inequalities: The Changing Distribution of Income and Wealth in the United Kingdom. John Hills, ed. Cambridge: Cambridge U. Press, pp. 19-48.
16. _. 1997. "Bringing Income Distribution in from the Cold," Econ. Journal, 107:441, pp. 297-321.
17. Atkinson, Anthony B. and Andrea Brandolini. 1999. "Promise and Pitfalls in the Use of Secondary Data-Sets: A Case Study of OECD Income Inequality," mimeo, Nuffield College, Oxford.
18. Autor, David H.; F. Lawrence Katz, and Alan Krueger. 1998. "Computing Inequality: Have Computers Changed the Labor Market?" Quart. J. Econ., 113:4, pp. 1169-213.
19. Banerjee, Abhijit and Andrew F. Newman. 1991. "Risk-Bearing and the Theory of Income Distribution," Rev. Econ. Stud., 58:2, pp. 211-35.
20. _. 1993. "Occupational Choice and the Process of Development," J. Polit. Econ., 101:2, pp. 274-98.
21. Barro, Robert. 1999. "Inequality, Growth and Investment," mimeo, Harvard U.
22. Barro, Robert and Xavier Sala-i-Mart'in. 1995. Economic Growth. NY: McGraw-Hill.
23. Benabou, Roland. 1996. "Inequality and Growth," NBER Macroeconomics Annual, 11, pp. 11-74
24. Berman, Eli; John Bound, and Zvi Griliches. 1994. "Changes in Demand for Skilled Labor within US Manufacturing: Evidence from the Annual Survey of Manufactures," Quart. J. Econ., 109:2, pp. 367-97.
25. Blundell, Richard and Stephen Bond. 1998. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," J. Econometrics, 87:1, pp. 115-43.
26. Bolton, Patrick and Mathias Dewatripont. 1994. "The Firm as a Communication Network," Quart. J. Econ., 109:4, pp. 809-39.
27. Borjas, George J.; Richard B. Freeman, and Lawrence F. Katz. 1992. "On the Labor Market Effects of Immigration and Trade," in Immigration and The Workforce: Economic Consequences for the United States and Source Areas. Borjas and Freeman, eds. Chicago: Chicago U. Press, pp. 213-44.
28. Bound, John and George Johnson. 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," Amer. Econ. Rev., 82:3, pp. 371-92.
29. Bourguignon, François. 1981. "Pareto-Superiority of Unegalitarian Equilibria in Stiglitz' Model of Wealth Distribution with Convex Savings Function," Econometrica 49:6, pp. 1469-75.
30. _. 1998. "The Measurement of Multidimensional Poverty," presented at the 1998 Congress of the European Economic Association.
31. Breen, Richard and Cecilia García-Peñalosa. 1998. "Income Inequality and Macroeconomic Volatility: An Empirical Investigation," mimeo, Nuf-field College, Oxford.
32. Bresnahan, Timothy; Erik Brynjolfsson, and Lorin Hitt. 1998. "How Do Information Technology and Workplace Organization Affect Labor Demand? Firm-Level Evidence," mimeo, MIT.
33. Brynjolfsson, Erik and Lorin Hitt. 1998. "Information Technology and Organizational Design: Evidence from Micro Data," mimeo, MIT.
34. Burtless, Gary. 1999. "Effects of Growing Wage Disparities and Changing Family Composition on the US Income Distribution," Europ Econ. Rev., 43:4, pp. 853-65.
35. Cappelli, Peter and Kermit Daniel. 1995. "Technology, Work Organization and the Structure of Wages," Working Paper, U. Pennsylvania, Wharton.
36. Caroli Eve. 1998. "New Technologies, Organizational Change and the Skill Bias: A Go into the Black Triangle," forthcoming in Technology and the Future Employment of Europe. Petit Pascal and Luc Soete.
37. Caroli, Eve; Nathalie Greenan, and Dominique Guellec. 1997. "Organizational Change and Human Capital Accumulation," Working Paper CEPREMAP 9719.
38. Caroli, Eve and John Van Reenen. 1999. "Skill-Biased Organizational Change? Evidence from a Panel of British and French Establishments," CEPREMAP Working Paper 9917.
39. Chennells, Lucy and John Van Reenen. 2000. "The Effects of Technical Change on Skills, Wages, and Employment: A Survey of the Micro-Economic Evidence," in Information and Communication Technologies: Productivity, Employment and Earnings. Jacques Mairesse and Nathalie Greenan, eds. Cambridge: MIT Press, forthcoming.
40. Davis, Steven J. 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Macroeconomics Annual, 7, pp. 239-92
41. David, Paul A. 1990. "The Dynamo and the Computer: A Historical Perspective on the Productivity Paradox," Amer. Econ. Rev., 80:2, pp. 355-61.
42. Deininger, Klaus and Lyn Squire. 1996. "A New Data Set Measuring Income Inequality," World Bank Econ. Rev., 10:3, pp. 565-91.
43. DiNardo, John E.; Nicole M. Fortin, and Thomas Lemieux. 1996. "Labor Market Institutions and the Distribution of Wages 1973-1992: A Semi-Parametric Approach." Econometrica, 64:5, pp. 1001-44.
44. Doms, Mark; Timothy Dunne, and Kenneth R. Troske. 1997. "Workers, Wages and Technology," Quart J. Econ., 112: 1, pp. 253-89.
45. Duguet, Emmanuel and Nathalie Greenan. 1997. "Skill Biased Technical Change: an Econometric Study at the Firm Level," Revue Economique, 48:5, pp. 1061-89.
46. Dunne, Timothy; John Haltiwanger, and Kenneth R. Troske. 1997. "Technology and Jobs: Secular Changes and Cyclical Dynamics," Carnegie-Rochester Conf Ser. Public Policy, 46:0, pp. 107-78.
47. Easterly, William and Sergio Rebelo. 1993. "Fiscal Policy and Economic Growth: An Empirical investigation," J. Monetary Econ., 32:3, pp. 417-58.
48. Eicher, Theo S. 1996. "Interaction between Endogenous Human Capital and Technological Change," Rev. Econ. Stud., 63:1 pp. 127-44.
49. Evans, David S. and Boyan Jovanovic. 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints" J. Polit Econ., 97:4, pp. 808-27.
50. Falk, Martin and Bertrand Koebel. 1997. "The Demand for Heterogeneous labor in Germany," Zentrum fur Europaische Wirtschaftsforschung GmbH Discuss. Paper 97-28, Mannheim.
51. Feenstra, Robert C. and Gordon H. Hanson. 1999 "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979-90," Quart. J. Econ., 114:3 pp. 907-40.
52. Forbes, Kristin. 1998. "A Reassessment of the Relationship Between Inequality and Growth," mimeo, MIT.
53. Fortin, Nicole M. and Thomas Lemieux, 1997. "Institutional Changes and Rising Wage Inequality: Is there a Linkage?" J. Econ. Perspect., 11:2, pp. 75-96.
54. Freeman, Richard B. 1993. "How Much Has Deunionization Contributed to the Rise in Male Earnings Inequality?" in Uneven Tides: Rising Inequality in America. Sheldon Danziger and Peter Gottschalk, eds. NY: Russell Sage Foundation, pp. 133-63.
55. Galor, Oded and Omer Moav. 1998. "Ability Biased Technological Transition, Wage Inequality and Economic Growth," mimeo; Brown U.
56. Galor, Oded and Daniel Tsiddon. 1997. "Technological Progress, Mobility, and Economic Growth," Amer. Econ. Rev., 87:3, 363-82.
57. Galor, Oded and Joseph Zeira. 1993. "Income Distribution and Macroeconomics," Rev. Econ. Stud., 60:1, pp. 35-52.
58. García-Peñalosa, Cecilia. 1995. "The Paradox of Education or the Good Side of Inequality," Oxford Econ. Papers, 47:2, pp. 265-85.
59. Glomm, Gerhard and B. Ravikumar. 1992. "Public versus Private investment in Human Capital: Endogenous Growth and Income Inequality," J. Polit. Econ., 100:4, pp. 818-34.
60. Gosling, Amanda; Stephen Machin, and Costas Meghir. 1998. "The Changing Distribution of Male Earnings in the UK," IFS Working Paper 98/9.
61. Gottschalk, Peter and Timothy M. Smeeding. 1997. "Cross-National Comparisons of Earnings and Income Inequality," J. Econ. Lit., 35:2, pp. 633-87.
62. Greenan, Nathalie. 1996. "Innovation Technologique, Changements Organisationnels et Evolution des Compétences," Economie et Statistique, 298: pp. 35-44.
63. Griliches, Zvi. 1986. "Productivity, R&D and Basic Research at the Firm-Level in the 1970s," Amer. Econ. Rev., 76:1, pp. 141-55.
64. _. 1994. "Productivity, R&D and the Data Constraints," Amer. Econ. Rev., 84:1, pp. 1-23.
65. Griliches, Zvi and Jacques Mairesse. 1984. "Productivity and R&D at the Firm-Level," in R&D Patents and Productivity. Zvi Griliches, ed. Chicago: U. Chicago Press, pp. 339-74.
66. Groshen, Erika and David Levine. 1998. "The Rise and Decline (?) of US Internal Labor Markets," Mimeo, Hass School, U. California Berkeley.
67. Hausmann, Ricardo and Michael Gavin. 1996. "Securing Stability and Growth in a Shock-Prone Region: The Policy Challenges for Latin America," in Securing Stability and Growth in Latin America R. Hausmann and Helmut Reisen, eds. Paris: OECD, pp. 23-64.
68. Ichniowski, Casey and Kathryn Shaw. 1995. "Old Dogs and New Tricks: Determinants of the Adoption of Productivity-Enhancing Work Practices," Brookings Pap. Econ. Act., Microeconomics, 0:0, pp. 1-55.
69. Inter-American Development Bank. 1995. "Overcoming Volatility in Latin America," in Report on Economic and Social Progress in Latin America: 1995, Inter-American Development Bank, Washington DC.
70. Johnson, George E. 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," J. Econ. Perspect., 11:2, pp. 41-54.
71. Juhn, Chinhui; Kevin Murphy, and Brooks Pierce. 1993. "Wage Inequality and the Rise in Returns to Skill," J. Polit. Econ., 101:3, pp. 410-42.
72. Koebel, Bertrand. 1997. "Aggregation in Production Analysis: Heterogeneity and Representativity," PhD Thesis, Louis Pasteur U., Strasbourg.
73. Koike, Kazuo. 1988. Understanding Industrial Relations in Modern Japan. NY: Saint-Martin's Press.
74. Kremer, Michael and Eric Maskin. 1996. "Wage Inequality and Segregation by Skill," NBER Working Paper 5718.
75. Krugman, Paul R. 1995. "Growing World Trade: Causes and Consequences," Brookings Pap. Econ. Act., 0:1, pp. 327-62.
76. Kuznets, Simon. 1955. "Economic Growth and Income Inequality," Amer. Econ. Rev., 45:1, pp. 1-28.
77. _. 1963. "Quantitative Aspects of the Economic Growth of Nations," Econ. Devel. and Cultural Change, 11:2, pp. 1-80.
78. La Porta, Rafael; Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny. 1997. "Legal Determinants of External Finance," J. Finance, 52:3, pp. 1131-1150.
79. Lawrence, Robert Z. 1996. Single World, Divided Nations? Paris: OECD Development Centre.
80. Levy, Frank and Richard J. Murnane. 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," J. Econ. Lit., 30:3, pp. 1333-82.
81. Lindbeck, Assar and Dennis J. Snower. 1997. "Reorganization of Firms and Labor-Market Inequality," Amer. Econ Rev. (Papers and Proceedings), 86:2, pp. 315-21.
82. Lindert, Peter H. 1996. "What Limits Social Spending?" Explorations Econ. Hist., 33:1, pp. 1-34.
83. Lucas, Robert E. 1988. "On the Mechanics of Economic Development," J. Monetary Econ., 22:1, pp. 3-42.
84. _. 1993. "Making a Miracle," Econometrica, 61:2, pp. 251-72.
85. Lynch, Lisa M. 1993. "The Economies of Youth Training in the United States," Econ. J., 103:420, pp. 1292-302.
86. Machin, Stepnen. 1996a. "Wage Inequality in the UK," Oxford Rev. Econ. Policy, 12:1, pp 47-64.
87. _. 1996b. "Changes in the Relative Demand for Skills," in Acquiring Skills. Market Failures, their Symptoms and Policy Responses. Alison L. Booth and Dennis J. Snower, eds. Cambridge: Cambridge U. Press, pp. 129-46.
88. Machin, Stephen. 1997. "The Decline of Labor Market Institutions and the Rise in Wage Inequality in Britain." Europ. Econ. Rev., 41:3-5, pp. 647-57.
89. Machin, Stephen and John Van Reenen. 1998. "Technology and Changes in Skill Structure: Evidence from Seven OECD Countries," Quart. J. Econ., 113:4, pp. 1215-44.
90. Marsden, David. 1990. "Institutions and Labor Mobility: Occupational and Internal Labor Markets in Britain, France, Italy and West Germany," in Labor Relations and Economic Performance. Renato Brunetta and Carlo Dell'Aringa, eds. London: MacMillan, pp. 414-38.
91. Mirrlees, James A. 1971. "An Exploration in the Theory of Optimum Income Taxation," Rev. Econ. Stud., 38:114, pp. 175-208.
92. Murphy, Kevin M. and Finis Welch. 1992. "The Structure of Wages," Quart. J. Econ., 107:1, pp. 285-326.
93. Neven, Damien J. and Charles Wyplosz. 1998. "Relative Prices, Trade and Restructuring in European Industry," in Trade and Jobs in Europe: Much Ado about Nothing? Mathias Dewatripont, André Sapir, and Khalid Sekkat, eds. Oxford: Clarendon Press.
94. Nickell, Stephen J. 1997. "Unemployment and Labour Market Rigidities: Europe versus North America," J. Econ Perspect., 11:3, pp. 55-74.
95. Nickell, Stephen J. and Brian Bell. 1996. "Changes in the Distributions of Wages and Unemployment in OECD Countries," Amer. Econ. Rev., 86:2, pp. 302-07.
96. OECD. 1993. Employment Outlook, Paris: OECD.
97. _. 1996. Employment Outlook, Paris: OECD.
98. Okun, Arthur M. 1975. Equality and Efficiency: The Big Tradeoff, Washington: The Brookings Institution.
99. Osterman, Paul. 1994. "How Common is Workplace Transformation and Who Adopts It?" Ind. Lab. Rev. Rev., 47:2, pp. 173-88.
100. Owens, Trudy and Adrian Wood. 1997. "Export-Oriented Industrialization Through Primary Processing?" World Devel., 25:9, pp. 1453-70.
101. Perotti, Roberto. 1992. "Fiscal Policy, Income Distribution, and Growth," Columbia U. Working Paper 636.
102. _. 1993. "Political Equilibrium, Income Distribution, and Growth," Rev. Econ. Stud., 60:4, pp. 755-76.
103. _. 1996. "Growth, Income Distribution, and Democracy: What the Data Say," J. Econ. Growth, 1:2, pp. 149-87.
104. Persson, Torsten and Guido Tabellini. 1994. "Is Inequality Harmful for Growth?" Amer. Econ. Rev., 84:3, pp. 600-21.
105. Piketty, Thomas. 1996. "Inegalités et Redistribution," Revue d'Economie Politique, 104:6, pp. 769-800.
106. _. 1997. "The Dynamics of the Wealth Distribution and the Interest Rate with Credit Rationing," Rev. Econ. Stud , 64:2, pp. 173-90.
107. Piore, Michael. 1994. "Corporate Reform in American Manufacturing and the Challenge to Economic Theory," in Information Technology and the Corporation of the 1990s. Thomas J. Allen and Michael S. Scott-Morton, eds. Oxford: Oxford U. Press, pp. 43-60.
108. Prendergast, Canice. 1999. "The Provision of Incentives in Firms," J. Econ. Lit., 37:1, pp. 7-63.
109. Psacharopoulos, George. 1986. Financing Education in Developing Countries. Washington: World Bank.
110. Radner, Roy. 1993. "The Organization of Decentralized Information Processing," Econometrica, 61:5, pp. 1109-46.
111. Ramey, Garey and Valerie A. Ramey. 1995. "Cross-Country Evidence on the Link Between Volatility and Growth," Amer. Econ. Rev., 85:5, pp. 1138-51.
112. Rebelo, Sergio. 1991. "Long-Run Policy Analysis and Long-Run Growth," J. Polit. Econ., 99:3, pp. 500-21.
113. Revenga, Ana L. 1992 "Exporting Jobs?: The Impact of Competition on Employment and Wages in US Manufacturing," Quart. J. Econ., 107:1, pp. 255-84.
114. Rubinstein, Yona and Daniel Tsiddon. 1998. "Coping with Technological Progress: The Role of Ability in Making Inequality So Persistent," mimeo, Tel Aviv U.
115. Scott, Elisabeth D.; K. C. O'Shaughnessy, and Peter Cappelli. 1996. "Management Jobs in the Insurance Industry: Organization, Deskilling and Rising Pay Inequality," in Broken Ladders: Managerial Careers in the New Economy. Paul Osterman, ed. NY: Oxford U. Press, pp. 126-54.
116. Shleifer, Andrei. 1986. "Implementation Cycles," J. Polit. Econ., 94:6, pp. 1163-90.
117. Slaughter, Matthew J. 1998. "What Are the Results of Product-Price Studies and What Can We Learn from Their Differences?" mimeo, Dartmouth College.
118. Soskice, David. 1993. "Social Skills from Mass Higher Education: Rethinking the Company-Based Initial Training Paradigm," Oxford Rev. Econ. Policy, 9:3, pp. 101-13.
119. Stiglitz, Joseph E. 1969. "The Distribution of Income and Wealth Among Individuals," Econometrica, 37:3, pp. 382-97.
120. Stole, Lars A. and Jeffrey Zwiebel. 1996. "Intra-Firm Bargaining under Non-Binding Contracts," Rev. Econ. Stud., 63:3, pp. 375-410.
121. Tamura, Robert. 1991. "Income Convergence in an Endogenous Growth Model," J. Polit Econ., 99:3, pp. 522-40.
122. Temple, Jonathan. 1999. "The New Growth Evidence," J. Econ. Lit., 37:1, pp. 112-56.
123. Thesmar, David and Mathias Thoenig. 1998. "The End of Fordism: Macroeconomic Consequences of Endogenous Organisational Responses," mimeo, Delta, Paris.
124. Tinbergen, Jan. 1975. Income Distribution: Analysis and Policies. Amsterdam: North-Holland.
125. Todaro, Michael P. 1997. Economic Development. London: Longman.
126. Van Zandt, Timothy. 1997. "Decentralized Information Processing in the Theory of Organizations," in Contemporary Economic Development Reviewed, Vol. 4: The Enterprise and its Environment. Murat Sertel, ed. London: MacMillan.
127. Violante, Gianluca. 1996. "Equipment Investment and Skill Dynamics: A Solution to the Wage Dispersion Puzzle?" mimeo, University College, London.
128. Wolff, Edward N. 1996. "The Productivity Slowdown: The Culprit at Last? Follow-Up on Hulten and Wolff," Amer. Econ. Rev., 86:5, pp. 1239-52.
129. Wood, Adrian. 1994. North-South Trade, Employment and Inequality: Changing Fortunes in a Skill Driven World, Oxford: Clarendon Press.
130. _. 1998. "Globalisation and the Rise in Labour Market Inequalities," Econ. J., 108:450, pp. 1463-82.
131. Wood, Adrian and Cristobal Ridao-Cano. 1996. "Skill, Trade and International Inequality," Institute of Development Studies, Working Paper 46.
132. World Bank. 1990. World Development Report. Washington DC: World Bank.
133. _. 1993. The East Asian Miracle. Washington DC: World Bank.