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dc.contributor.authorMarrero Díaz, Gustavo Alberto 
dc.contributor.authorRodríguez Hernández, Juan Gabriel
dc.description.abstractFighting against economic inequality is one fundamental social goal in the agendas of most governments. However, recent studies highlight that people actually prefer unequal societies, as they accept inequality generated by an individual's effort and wish to reduce only unfair inequality (generated by factors beyond an individual's control). This distinction might help to explain the fundamental unsolved question about whether inequality is good or bad for growth: unfair inequality (UI) could be growth-deterring, while fair inequality (FI) might be growth-enhancing. We derive a reduced-form growth equation from a stylized overlapping-generations model with human capital that includes FI, UI, and poverty. Then, using an instrumental variable approach, we show for alternative samples and inequality measures at the worldwide level that the estimated coefficient associated with UI is always negative, while the coefficient of total inequality increases when UI is included in the regression. Moreover, we find that poverty mediates this relationship because the higher the poverty rate, the smaller the impact of either type of inequality on growth.en
dc.relation.ispartofseriesThe Scandinavian .Journal of Economics, 125 (4), 2023
dc.rightsLicencia Creative Commons (Reconocimiento-No comercial-Sin obras derivadas 4.0 Internacional)
dc.titleUnfair inequality and growth
dc.subject.keywordUnfair inequalityen
dc.subject.keywordhuman capital

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  • DECOF. Economía, Contabilidad y Finanzas
    Documentos de investigación (artículos, libros, capítulos de libros, ponencias...) publicados por investigadores del Departamento de Economía, Contabilidad y Finanzas

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Licencia Creative Commons (Reconocimiento-No comercial-Sin obras derivadas 4.0 Internacional)
Except where otherwise noted, this item's license is described as Licencia Creative Commons (Reconocimiento-No comercial-Sin obras derivadas 4.0 Internacional)