Key points are not available for this paper at this time.
Research on inequality and growth can be divided into two strands. One, deriving from Kuznets and Lewis, has tried to identify a mechanistic relationship between growth and inequality. The other has tried to find causal explanations of growth and inequality, treating them independently. In this paper, we draw from both strands to test whether growth and inequality are the joint outcomes of other variables and processes. We find that simultaneous examination of growth and inequality yields significantly different results, and has different consequences for policy, than previous independent studies. We also examine the determinants of growth among different income classes. We find that the disaggregated analysis clarifies and extends the results of the aggregate analysis, especially concerning the impact of globalization on the poor.
Lundberg et al. (Tue,) studied this question.