9.5. Economic growth, growth theory, and income inequality. 9.5.1. The Piketty debate 9.5.2. Background data: Inequality and growth 9.5.3. Piketty's argument: the two fundamental laws of capitalism. 9.5.3.1. Examining the second fundamental law 9.5.3.2. However, the rise in overall income inequality is not (only) about surging top income shares: often, incomes at the bottom grew much slower during the prosperous years and fell during downturns, putting relative (and in some countries, absolute) income poverty on the radar of policy concerns. Inclusive growth in ADB's Strategy 2020 is about economic growth with equality of opportunity. Policy Pillar 1: High, Efficient and Sustained Growth to Create Productive Jobs and Economic In many economies, inequalities pertaining to income and nonincome outcomes between different This paper analyzes the effect of income inequality on economic growth. Data on the growth rates of 30 countries and Gini-indexes was used. The models controlled for country differences in the unemployment and inflation rates, using them as general measures of the stability of the economy. Inequality and Growth: What Can the Data Say? ?. Abhijit V. Banerjee. † and Esther Duo. ‡ June 2003. Abstract This paper describes the correlations Most importantly, their data set has a panel struc-ture with several consecutive measures of income inequality for each country. This has made it Income Inequality and Consumption in China. August 2013. However, little is known about the impact of this growth at the household level. By tackling income inequality, China has an opportunity to transform itself from an export- and infrastructure-oriented economy to a domestic BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by What matters most: the inequality of opportunity or the inequality of economic outcome, including income? These models regress income inequality against economic complexity, a country's average level of income These variations are small for both income inequality and economic complexity, and thus we should not expect large effects. 15. S. Kuznets, Economic growth and income inequality. Am. Concurrently, within-country income inequality in advanced economies started to rise. This pattern of a slowing trend in productivity and economic growth coupled with a rising trend in income inequality in advanced economies became stronger in the latter part of the post-1980 period. 2. Kuznets and Income Inequality. 3. Real Income Growth in the USA. 22. Economic Effects of Rising Inequality Social unrest and civil disobedience • Strikes and demonstrations over poor pay and conditions at Fox con in China which produces IPhones and IPads Self-perpetuating poverty cycle For example, economic growth in the emerging-market economies, including China and India—the most populous countries in the world—is projected well distribution of income two decades from now with the current situation and to calculate changes in global inequality that will result from different Income inequality and economic growth: Evidence from American data. Journal of Economic Growth, 7, 25-41. We are grateful to three anonymous referees and the associate editor for thoughtful comments that significantly improved the paper. Income inequa