How does inequality affect growth? Evidence from a panel of Canadian regions

Yannick Marchand, Sebastian Breau, Jürgen Essletzbichler

Publication: Scientific journalJournal articlepeer-review


This paper investigates the effects of income inequality on regional economic growth in Canada over the 1981 to 2011 period. Using standard cross-sectional models, the consistent pattern we find is that regions with initially higher levels of inequality do subsequently experience greater average annual growth rates over the long-run. In contrast, the medium-term responses are different. Results from fixed effects models point to a negative relationship between inequality and growth. Moreover, across both types of models, we find significant differences for urban and rural region
Original languageEnglish
Pages (from-to)130 - 139
JournalCanadian Journal of Regional Science
Issue number2
Publication statusPublished - 2019

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 507001 Applied geography
  • 507026 Economic geography
  • 507

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