Inequality Of Economic Growth And Inequality

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Economic growth and inequality has been a long debated topic but is more important in the recent decades as income inequality has dramatically grown within many countries; the implications on these can hinder social and political development. Economic growth and its link to Equality can help create stability for an economy and improve living standards in the long run. More directly it allows people to be able to contribute and engage in the economy as it provides the opportunity for employment, investment and savings as well as consumption (Gehring & Kulkarni, 2006). These opportunities are channelled through the drivers of economic growth that increase factors of production (Human Capital, Technology and Institutions), as a result the relationship between growth and inequality are evident in the functioning of the labour market. Many of the theoretical and empirical studies that explore the relationship between inequality and growth have so far been disappointing and inconclusive. One of the reasons for this is the emergence of the different types of inequality that affect growth which is inequality of opportunity and effort, therefore the relationship can be positive or negative based on the type of inequality, so it’s important to explore the theory behind inequality of income, opportunity and intergenerational mobility as the answer to the question embedded in each (Bradbury & Triest, 2014). India over the last ten years has emerged as one of the emerging economies

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