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ralph lauren polo

Hubert Kempf and Fabien Moizeau
''Inequality, Growth and the Dynamics of Social Segmentation.''
In this paper we investigate the link between the dynamics of society segmentation into communities and the growth process, based on a simple human capital growth model. Using coalition theory, we study the socioeconomic dynamics of an economy over time, characterize it and prove that the economy converges to a steady state partition which may be segmented. Eventually the whole economy tends to a balanced growth path, exhibiting persistent inequality in the case of segmentation. We then prove that the presence of a global externality does not necessarily lead to a complete homogenization of society into a grand coalition. On the whole, the relationship between inequality and growth cannot be assessed without taking into consideration the stratification phenomena at work in society over time.
Keywords: Coalition Theory, Inequality, Growth.
JEL: D9 - Intertemporal Choice and Growth: General
D3 - Distribution: General
Manuscript Received : May 21 2008 Manuscript Accepted : Jun 12 2009

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