Income Inequality, In-Kind Benefits and Economic Growth: Studied Using a Modified Gini Index

Detta är en Kandidat-uppsats från Lunds universitet/Nationalekonomiska institutionen

Sammanfattning: A negative long-run relationship between inequality and growth has been found for a variety of inequality measures, but as these measures invariably ignore the pro-poor effect of in-kind redistribution, one may question the reliability of previous studies’ inequality-growth estimates. In this paper, I incorporate in-kind benefits into the Gini index and present new estimates of the inequality-growth impact for the period 1980―2007, in what is believed to be the first inequality-growth study of its kind. The results suggest that a negative relationship between inequality and growth is present both with and without in-kind benefits. The results are robust to changes in model specifications, standardization of the inequality variable, control variable definitions and generally against removal of single observations.

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