Journal of Economics and Development Studies

Productivity Growth and Income Inequality
William R. DiPietro

Abstract
This paper employs cross country regression analysis to consider the relationship between real labor productivity growth over the first decade of the twenty-first century and income inequality. It postulates that, under the assumption that most countries in the world exceed the optimal level of income inequality, greater income inequality leads to reduced productivity growth. The empirical results of the paper are consistent with the notion that real labor productivity growth is negatively related to income inequality.

Full Text: PDF     DOI: 10.15640/jeds.v2n3a1