The impact of income inequality on economic growth
"Increases in income inequality have both growth-promoting effects (stronger performance incentives, as well as incentives to invest in one’s own human capital, to take risks, and to make investments) and growth-dampening effects (demotivating incentives, social tensions and political unrest, d...
| Main Authors: | , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Gütersloh
2015
Bertelsmann Stiftung |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19100773124919289559-The-impact-of-income-inequalit.htm |
| _version_ | 1771659897402818562 |
|---|---|
| author | Petersen, Thiess Schoof, Ulrich |
| author_facet | Petersen, Thiess Schoof, Ulrich |
| collection | Library items |
| description | "Increases in income inequality have both growth-promoting effects (stronger performance incentives, as well as incentives to invest in one’s own human capital, to take risks, and to make investments) and growth-dampening effects (demotivating incentives, social tensions and political unrest, declines in demand as a brake on growth). While increases in income inequality in the 1950s and the 1960s still led to growth-promoting effects, current studies increasingly identify growth-dampening effects. Particularly in highly developed economies such as Germany, Japan and the United States, these studies indicate that increasing income inequality has reached a level that is becoming a brake on growth. For this reason, there is no fundamental contradiction between state-led income redistribution and economic growth. The reduction of income inequality should not be limited to a pure redistribution through the tax-transfer system, but should also include a rebalancing of the supply-side policies of the past 30 years." |
| format | TEXT |
| geographic | developed countries |
| id | 19100773124919289559_c0469457a7874e3e894f23b9dfecc2bc |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19100773124919289559_c0469457a7874e3e894f23b9dfecc2bc |
| is_hierarchy_title | The impact of income inequality on economic growth |
| language | English |
| physical | 12 p. Digital |
| publishDate | 2015 |
| publisher | Gütersloh Bertelsmann Stiftung |
| spellingShingle | Petersen, Thiess Schoof, Ulrich income distribution social inequality The impact of income inequality on economic growth |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=108918092619 |
| title | The impact of income inequality on economic growth |
| topic | income distribution social inequality |
| url | https://www.labourline.org/KENTIKA-19100773124919289559-The-impact-of-income-inequalit.htm |