Abstract
In this study, the empirical contents of various income inequality measures are compared under an identical framework with a well-tested data set. Our study suggests that long-term income inequality has a strong negative effect on Gross Domestic Product (GDP) growth under different measurements. Moreover, governments should investigate further into changes in the income size of the middle class as an indicator for potential changes in social stability, investment, and GDP growth, besides focusing on the Gini coefficient, which they predominantly do now.
| Original language | English |
|---|---|
| Pages (from-to) | 24-42 |
| Number of pages | 19 |
| Journal | Journal of Income Distribution |
| Volume | 20 |
| Issue number | 3-4 |
| Publication status | Published - Sept 2011 |
Scopus Subject Areas
- Sociology and Political Science
- Economics, Econometrics and Finance(all)
User-Defined Keywords
- Economic growth
- Income distribution
