van der Weide, RoyMilanovic, Branko2014-08-152014-08-152014-07https://hdl.handle.net/10986/19363The paper assesses the impact of overall inequality, as well as inequality among the poor and among the rich, on the growth rates along various percentiles of the income distribution. The analysis uses micro-census data from U.S. states covering the period from 1960 to 2010. The paper finds evidence that high levels of inequality reduce the income growth of the poor and, if anything, help the growth of the rich. When inequality is deconstructed into bottom and top inequality, the analysis finds that it is mostly top inequality that is holding back growth at the bottom.en-USCC BY 3.0 IGOAGGREGATE INCOMEANNUAL GROWTHAVERAGE ANNUALAVERAGE GROWTHAVERAGE GROWTH RATEAVERAGE INCOMEAVERAGE INCOME GROWTHAVERAGE INCOMESCAPITAL ACCUMULATIONCONFLICTCREDIT CONSTRAINTCREDIT CONSTRAINTSCREDIT MARKETCREDIT MARKET IMPERFECTIONSCROSS-COUNTRY ANALYSISCROSS-COUNTRY DATADATA AVAILABILITYDATA QUALITYDATA SETSDEPENDENT VARIABLEDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDISPOSABLE INCOMEDISTRIBUTIVE POLITICSDYNAMIC PANELECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC LITERATUREECONOMIC REVIEWECONOMIC STUDIESEFFECT OF INEQUALITY ON GROWTHEMPIRICAL EVIDENCEEMPIRICAL RESULTSEMPIRICAL STUDIESEMPIRICAL TESTERROR TERMFINANCIAL CRISISFIXED EFFECTSFIXED EFFECTS ESTIMATIONFOREIGN AIDGINI COEFFICIENTGROSS INCOMEGROWTH LITERATUREGROWTH PATTERNGROWTH RATEGROWTH RATESGROWTH REGRESSIONGROWTH REGRESSIONSGROWTH SPELLSGROWTH THEORIESGROWTH-INEQUALITY RELATIONSHIPHETEROGENEOUS COMMUNITIESHIGH INCOME COUNTRIESHIGH INEQUALITYHOUSEHOLD DATAHOUSEHOLD INCOMEHOUSEHOLD MEMBERSHOUSEHOLD SIZEHOUSEHOLD SURVEYSHUMAN CAPITALHUMAN CAPITAL ACCUMULATIONINCOMEINCOME DATAINCOME DISTRIBUTIONINCOME DISTRIBUTIONSINCOME GROWTHINCOME INEQUALITYINCOME REDISTRIBUTIONINDEPENDENT VARIABLESINEQUALITYINEQUALITY LEVELSINEQUALITY MEASUREINEQUALITY MEASURESINEQUALITY OF OPPORTUNITYINEQUALITY-GROWTH RELATIONSHIPINTERVENTIONSLABOR FORCELEVELS OF INEQUALITYLOW INCOMELOW INEQUALITYMACROECONOMIC IMPLICATIONSMACROECONOMICSMARGINAL PROPENSITYMARGINAL TAXMARGINAL TAX RATEMARKET INCOMEMEASURE OF INEQUALITYMEASURES OF INEQUALITYMEASURING INCOME INEQUALITYMEDIAN INCOMEMEDIAN VOTERMEDIAN VOTER HYPOTHESISMEMBER COUNTRIESMICRO DATAMIDDLE CLASSNEGATIVE COEFFICIENTNEGATIVE CORRELATIONNEGATIVE EFFECTNEGATIVE IMPACTNEGATIVE RELATIONSHIPNEGATIVE SIGNNEW GROWTH THEORIESOVERALL INEQUALITYPENSIONSPER CAPITA GROWTHPER CAPITA GROWTH RATEPER CAPITA INCOMEPER CAPITA INCOMESPOINT DECLINEPOLICY DISCUSSIONSPOLICY RESEARCHPOLITICAL ECONOMYPOLITICAL INSTABILITYPOLITICAL SCIENCEPOOR GROWTHPOSITIVE EFFECTPOSITIVE IMPACTPOSITIVE RELATIONSHIPPRO-POORPRO-POOR GROWTHPROPERTY RIGHTSPUBLIC CHOICEPUBLIC ECONOMICSPUBLIC GOODSRATE OF GROWTHREAL GROWTHREAL INCOMEREAL INCOMESREDISTRIBUTIVE POLICIESREGIONAL DUMMIESREGRESSION DIAGNOSTICSRESIDUAL INEQUALITYRICH COUNTRIESRISING INEQUALITYSAVINGSSENSITIVITY ANALYSISSIGNIFICANT EFFECTSIGNIFICANT NEGATIVESOCIAL SECURITYSTANDARD DEVIATIONTAXATIONTOTAL INEQUALITYUNEMPLOYMENTUNEQUAL SOCIETIESWAGESWARWORLD INCOME INEQUALITY10.1596/1813-9450-6963