The short-run relationship between inequality and growth

Evidence from OECD regions during the Great Recession

Bibliographic Data

ID10409461
AuthorsVicente Royuela (0000-0002-7647-0063, Grup d’Anàlisi Quantitativa Regional (AQR-IREA), University of Barcelona, Barcelona, Spain., corresponding author), Paolo Veneri (0000-0002-4640-5500, Regional Development Policy Division, Public Governance and Territorial Development, Organisation for Economic Co-operation and Development (OECD), Paris, France.), Raúl Ramos (0000-0003-0047-0793, Grup d’Anàlisi Quantitativa Regional (AQR-IREA), University of Barcelona, Barcelona, Spain. .)
Year2018
Volume53
Issue4
Pages574-586
Publication date2018-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueRegional Studies (JOURNAL)
Journal identifiersISSN: 0034-3404 • E-ISSN: 1360-0591
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/00343404.2018.1476752
OpenAlexW2886176649
LanguageEN
Citations received15
References cited58

This paper provides evidence on the relationship between income inequality and economic growth in Organisation for Economic Co-operation and Development (OECD) regions during the decade 2003–13. It combines household survey data and macroeconomic databases, covering over 200 comparable regions in 15 OECD countries. The econometric results, based on two alternative sets of instruments, highlight a general negative association between inequalities and economic growth since the start of the economic crisis. This relationship is sensitive to the type of urban structure. Higher inequalities seem to be more detrimental for growth in regions characterized by medium to large-sized cities, while regions characterized by small cities and rural areas are less affected

Demographic economics · Development economics · Econometric analysis · Economic geography · Economic inequality · Economics · Great recession · Inequality · Labour economics · Macroeconomics · Recession · Economic theories and models · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality