DABUS Carlos Dario
Income Inequality and Economic Growth: New Evidence from Latin America
DELBIANCO, FERNANDO, DABÚS, CARLOS Y CARABALLO POU, MARÍA ANGELES
Cuadernos de Economía
Universidad Nacional de Colombia
Lugar: Bogotá; Año: 2014 vol. 33 p. 381 - 381
The goal of this paper is to study the "inequality-economic growth" relationship for Latin America during the period 1980-2010. The hypothesis is that income inequality differently affects rich and poor countries, as well as the top end of the distribution. Following Voitchosky (2005), Lin et al. (2009) and Stewart and Moslares (2012), we use the Gini coefficient as a general level of inequality, and the share of the top ten percent of the richest population. In turn, to capture potentially differential effects of inequality, we include pondered variables between levels of income (grouping countries by cluster analysis) and measures of inequality in the estimations. Our results show that in general inequality is harmful for economic growth, but the relation between both variables becomes positive for the richest populations of higher income countries.