An Empirical Test of the Inequality Trap Concept

Caroline Daymon (1) , Céline Gimet (2)

1 CEFI - Centre d'économie et de finances internationales
2 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne

The paper uses a GMM estimation to prove the impact of equity on inequality persistence which suggests the presence of inequality trap, and underline the significant influence of the credit market, wealth and education access initial levels.

Mots clés: Inequality Trap; GMM estimation

Domaines: Economies et finances

Caroline Daymon, Céline Gimet. An Empirical Test of the Inequality Trap Concept. Economics Letters, 2009, 105 (2), pp.165-167. ⟨10.1016/j.econlet.2009.07.006⟩. ⟨halshs-00451516⟩