By Vicente Royuela (Univ. Barcelona, ES) ; Paolo Veneri (OECD) ; Raul Ramos (Univ. Barcelona, ES). In: Regional Studies, 2019, Vol. 53/4, pp. 574-586.
This paper provides evidence on the relationship between income inequality and economic growth in the 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.

By Romina Boarini ; Orsetta Causa (both from OECD, Paris) ; Marc Fleurbaey (Princeton Univ, US) ; Gianluca Grimalda (Kiel World Economy, DE) ; Ingrid Woolard (Stellenbosch Univ., ZA). In: Economics, 2018, Vol. 12/63, pp. 1–26.
The authors propose a policy compact to achieve more inclusive growth in G20 countries so that economic growth regains the ultimate sense of improving all people’s lives … Concrete policy actions are described that span education, labour, fiscal instruments, public and private governance.

By Andrew Berg ; Jonathan D. Ostry ; Charalambos G. Tsangarides ; Yorbol Yakhshilikov (all IMF). In: Journal of Economic Growth, 2018, Vol. 23/3, pp. 259–305.
Across a variety of estimation methods, data samples, and robustness checks, we find: (1) lower net inequality is robustly correlated with faster and more durable growth, controlling for the level of redistribution; (2) redistribution appears benign in terms of its impact on growth, except when it is extensive; and (3) inequality seems to affect growth through human capital accumulation and fertility channels.

By Klaus Gründler ; Philipp Scheuermeyer (both at Univ. Würzburg, DE). In: Journal of Macroeconomics, 2018, Vol. 55, pp. 293–313.
Evidence from a large panel of harmonized data highlights a negative effect of income inequality on economic growth. Less equal societies tend to have less educated populations, higher fertility rates, and lower investment shares. These effects are particularly prevalent if credit availability is limited, while public education spending attenuates the negative effects of inequality.

By Shekhar Aiyar ; Christian Ebeke (both from IMF). International Monetary Fund, 2019, 24 papers.
We posit that the relationship between income inequality and economic growth is mediated by the level of equality of opportunity, which we identify with intergenerational mobility.

By European Commission, DG ECFIN, 2022, 44 pages.
A well-designed recurrent tax on residential property (RRPT) can be an important element of the tax mix being able to foster growth, address policy issues related to inequality and contribute to the green transition. Nevertheless, tax revenues from recurrent property taxes are low in EU Member States. The paper first examines the design of efficient property taxation, which also includes removing the homeownership bias in taxation.

Inequality puts our world at risk. In many OECD countries, inequalities are at their highest levels in 30 years and are widening and further rising due to the COVID-19 crisis. The top 10% of income earners take home over ten times more pay than the bottom 10%. Children whose parents did not complete secondary school have four times less chances of making it to university than children who have at least one parent with a university education.
Website chapters: Inclusive growth stories -- Business for inclusive growth -- Events -- Resources.

By Maria Demertzis, André Sapir, Guntram B. Wolff for Bruegel, 21 pages, 2019.
This Policy Contribution was written for the Informal ECOFIN Meeting, Bucharest, 5 April 2019. The authors look at the EU’s economic agenda, discussing the priorities for the next five years.