Inequality, Growth, and Investment

54 Pages Posted: 31 Oct 1999 Last revised: 27 Mar 2021

See all articles by Robert J. Barro

Robert J. Barro

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 1999

Abstract

Evidence from a broad panel of countries shows little overall relation between income inequality and rates of growth and investment. However, for growth, higher inequality tends to retard growth in poor countries and encourage growth in richer places. The Kuznets curve-whereby inequality first increases and later decreases during the process of economic development-emerges as a clear empirical regularity. However does not explain the bulk of variations in inequality across countries or over time.

Suggested Citation

Barro, Robert J., Inequality, Growth, and Investment (March 1999). NBER Working Paper No. w7038, Available at SSRN: https://ssrn.com/abstract=156688

Robert J. Barro (Contact Author)

Harvard University - Department of Economics ( email )

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