Clouded Ties: Inequality, Population Growth and Economic Growth : Assessments of the Economic Impacts of Inequality and Population Growth, 1954–2022

Sammanfattning

Debates regarding income inequality are still prevalent. Previous meta-analyses suggest income inequality and GDP per-capita growth are economically unrelated. On the other hand, young-age population growth has been estimated to have negative effects on per-capita growth. Using panel data from over 80 countries between 1954 and 2022, this essay re-examines the relationships between inequality, population growth and per-capita growth across various dimensions. Furthermore, the effects of democratic political institutions are examined, as well as the existence of Kuznets curves as countries underwent economic growth. While precise estimates were hard to pinpoint, the study’s results are in line with previous research, suggesting that young-age population growth, lagged by one year, negatively affects subsequent average four-year growth. Inequality lagged by one year is not shown to influence subsequent four-year growth, except in Asian and upper-middle income countries. Additionally, democratic institutions are estimated to be positive for growth on average and Kuznets curves are assessed to be fringe phenomena. Implications for policy entail possible openings for egalitarian policies and expansions of family-planning measures for low-income countries.