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Income inequality and economic growth: An investigation of the OECD countries
Jönköping University, Jönköping International Business School, JIBS, Economics.
2019 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Income inequality is in a majority of earlier studies more or less affirmatively agreed to be negatively related to economic growth. The underlying complexity of the connection lacks well-tried backing in the modern time. The main purpose of this research is to identify the relationship between income inequality and economic growth, but also the effects of other factors, such as human capital and investment. This is conducted with a panel data approach on 34 OECD countries with data over the period 1990-2010. Aggregate income inequality, represented by the Gini coefficient is used in the empirical estimation, together with two other variables to control for the income inequality at the bottom and top end of the income distribution. The results indicate the aggregate inequality level to be significantly and positively related to growth, while bottom end and top end inequality is seen to have a significant and negative relationship with growth. The level of GDP per capita, education and population growth is also seen to have an impact on economic growth.

Place, publisher, year, edition, pages
2019. , p. 25
Keywords [en]
inequality, economic growth, income distribution, OECD, gini coefficient
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-47283ISRN: JU-IHH-NAA-1-20200172OAI: oai:DiVA.org:hj-47283DiVA, id: diva2:1383784
Subject / course
JIBS, Economics
Supervisors
Examiners
Available from: 2020-01-13 Created: 2020-01-08 Last updated: 2020-01-13Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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  • asciidoc
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