Occupy This: The Effect of Income Inequality on GDP Per Capita Growth Using Panel Data in the United States from 1963 to 2009

Author

Dylan B. Lee, Claremont McKenna CollegeFollow

Graduation Year

Spring 2012

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Manfred Keil

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2012 Dylan B. Lee

Abstract

Income inequality and its relationship to long-term GDP per capita growth has been researched for decades since the development of the Kuznet’s Curve. Theoretical and empirical research has shown mixed results including positive, negative, non-existent, or statistically insignificant relationships. Empirical research on income inequality and economic growth in the United States has also shown mixed results. In addition to using existing data, this paper uses originally-constructed Gini Coefficients from 2005 to 2009. A statistically significant negative correlation between income inequality, and both short-term growth and long-term growth is found in the analysis of this data. Finally, this paper attempts to justify a causal relationship between income inequality and long-term growth.

Recommended Citation

Lee, Dylan B., "Occupy This: The Effect of Income Inequality on GDP Per Capita Growth Using Panel Data in the United States from 1963 to 2009" (2012). CMC Senior Theses. 311.
https://scholarship.claremont.edu/cmc_theses/311