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Inequality, mobility, and growth

Faculty of Economics, Oita University, Oita-shi, Japan

Many prior studies on inequality and growth have shown that inequality is harmful to growth. In contrast, employing an overlapping-generations model with missing capital markets, educational investment, and intergenerational mobility, this paper shows that inequality characterized by skill-biased technological change is good for growth.
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© 2019 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution Licese (http://creativecommons.org/licenses/by/4.0)

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