Ideas to Action:

Independent research for global prosperity



January 1, 2002

Inequality Does Cause Underdevelopment - Working Paper 1

This paper argues that the conflicting results in the voluminous recent literature on inequality and growth are missing the big picture on inequality and long-run economic development. While finding some evidence consistent with other development fundamentals, the paper finds high inequality to independently be a large and statistically significant barrier to developing the mechanisms by which prosperity is achieved.