The income inequality has increased worldwide in recent years. This column discusses the role of technological progress, globalisation, and the liberalisation of labour-market institutions on the growing inequality. The liberalisation of labour market institutions has made labour markets more flexible and created many jobs. But beyond a certain point, the net effect of further liberalisation might be negative for society.VoxEU
Why does inequality grow?
Coen Teulings | Professor of Economics, University of Cambridge; and CEPR Research Fellow
2 comments:
Tom, you might also want to look at this article from 2012 Inequality and Investment Bubbles
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"Money, it’s a gas," says the sixties rock group Pink Floyd in their song “Money.” Indeed, physics professor Victor Yakovenko is an expert in statistical physics and studies how the flow of money and the distribution of incomes in American society resemble the flow of energy between molecules in a gas. In his lectures to be delivered on April 19 at New York University and April 20 at the New School for Social Research, Yakovenko will bring his physics-of-incomes study up to date, including a report on the correlation between levels of income inequality and the appearance of financial downturns, such as the dot-com bubble of 2000 and the more recent housing bubble of 2008.
That the rich really are different is a common opinion. It turns out that the rich even have their own physics.
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