On the Impact of Inequality on Growth, Human Development, and Governance

Ines A. Ferreira, Rachel M. Gisselquist, Finn Tarp

Research output: Contribution to journalReview articlepeer-review

Abstract

Inequality is a major international development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key socioeconomic and political outcomes. Still, informed debate requires clear evidence. This article contributes by taking stock and providing an up-to-date overview of the current knowledge on the impact of income inequality, specifically on three important outcomes: (1) economic growth; (2) human development, with a focus on health and education as two of its dimensions; and (3) governance, with emphasis on democracy. With particular attention to work in economics, which is especially developed on these topics, this article reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and shortcomings of the different methods employed. Finally, we suggest promising future research avenues relying on experimental work for microlevel analysis and reiterate the need for more region-and country-specific studies and improvements in the availability and reliability of data.

Original languageEnglish
Article numberviab058
Number of pages28
JournalInternational Studies Review
Volume24
Issue number1
Early online date12 Jan 2022
DOIs
Publication statusPublished - Mar 2022

Bibliographical note

Copyright:
© 2021 The Author(s). Published by Oxford University Press on behalf of the International Studies Association.

Keywords

  • Income inequality
  • Review

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Political Science and International Relations

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