Natural inequality, production and economic growth

Gil S. Epstein, Uriel Spiegel

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


This paper explains why the effect of income inequality on productivity and growth is ambiguous. When income distribution exhibits inequality levels that are compatible with accepted criteria, productivity and growth ensue. When the divergence from an acceptable level of inequality occurs, then under certain conditions, we may expect lower (higher) production levels and lower (higher) levels of economic growth.

Original languageEnglish
Pages (from-to)463-473
Number of pages11
JournalLabour Economics
Issue number4
StatePublished - Sep 2001


  • D2
  • Growth and productivity
  • Income distribution
  • J2
  • Natural degree of inequality
  • O4


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