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Inequality, growth and the dynamics of social segmentation

Author

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  • Hubert Kempf

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Fabien Moizeau

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

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 that may be segmented. Eventually the whole economy tends to a balanced growth path, exhibiting persistent inequality in the case of segmentation. We then provide sufficient conditions on initial inequality and the technology parameters generating local and global externalities for obtaining a segmented society in the long run. 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.

Suggested Citation

  • Hubert Kempf & Fabien Moizeau, 2009. "Inequality, growth and the dynamics of social segmentation," PSE-Ecole d'économie de Paris (Postprint) halshs-00415141, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00415141
    DOI: 10.1111/j.1467-9779.2009.01420.x
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    Cited by:

    1. Theodore Palivos & Dimitrios Varvarigos, 2009. "Intergenerational Complementarities in Education and the Relationship between Growth and Volatility," Discussion Papers in Economics 09/8, Division of Economics, School of Business, University of Leicester.
    2. Tiago V. V. Cavalcanti & Chryssi Giannitsarou, 2017. "Growth and Human Capital: A Network Approach," Economic Journal, Royal Economic Society, vol. 127(603), pages 1279-1317, August.
    3. Theodore Palivos & Dimitrios Varvarigos, 2013. "Intergenerational Complementarities in Education, Endogenous Public Policy, and the Relation Between Growth and Volatility," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(2), pages 249-272, April.

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