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Status and income inequality in a knowledge economy

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  • Baochun Peng

Abstract

This paper models a market for status contained in a knowledge economy. Technological progress favours the knowledge sector and inequality of income rises with productivity. We show that the expected utility of all agents can fall while output and productivity grow; and such an outcome of “immiserizing growth” hinges crucially upon the combination of concern for status and technology-induced rises in inequality. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Baochun Peng, 2014. "Status and income inequality in a knowledge economy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 581-595, December.
    • Handle: RePEc:kap:jecinq:v:12:y:2014:i:4:p:581-595
    DOI: 10.1007/s10888-014-9274-y
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    References listed on IDEAS

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    Cited by:

    1. Kamila Tureckova, 2015. "Income Inequality By Method Of Non-Weighted Average Absolute Deviation: Case Study Of Central And Eastern European Countries*," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(4), pages 99-110, December.
    2. Nefo Indra Nizar & Nunung Nuryartono & Bambang Juanda & Akhmad Fauzi, 2024. "Can Knowledge and Culture Eradicate Poverty and Reduce Income Inequality? The Evidence from Indonesia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6425-6450, June.

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