TITLE:
Structural Change and Inequality
AUTHORS:
Camilo Andrés Mesa Salamanca, Hernando Zuleta Gonzalez
KEYWORDS:
Structural Change, Income Distribution, Economic Growth
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.3,
May
10,
2021
ABSTRACT: We build a theoretical model of demand-driven
structural change where individuals have different endowments of productive
factors. These differences in endowments
generate income inequality. The main result is that for economies with a
low factor endowment (poor economies), an increase in inequality can accelerate
structural change.