A Cross Sectional Analysis On Economic Growth and Income Inequality

Abstract

This paper aims to empirically estimate the effect of economic growth on income inequality for the time period of 2016. To conduct the study a total of 144 countries are taken with four independent variables. Using the method of cross sectional analysis the study finds that there is a positive association between GDP Per Capita & income inequality and negative association between unemployment & income inequality .These to findings are explained in a very different way also. After these two exceptional findings the paper concludes with the related policy recommendation.