Do Rising Top Incomes Lift All Boats?


Written by: Dan Andrews, Christopher Jencks, Andrew Leigh I. Introduction Research on the relationship between economic inequality and growth expanded rapidly during the 1990s. Initially, several studies suggested that inequality was bad for subsequent growth, but these studies were based on comparisons between countries with different initial levels of inequality, not comparisons between changes in inequality and changes in subsequent growth within the same country. As a result, skeptics found…
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