Status aspirations, wealth inequality, and economic growth

Oded Stark*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper argues that an increase in the inequality of wealth prompts a stronger quest for status that in turn fosters the accumulation of wealth. It proposes a measure for an individual's want of social status. For a given level of a population's wealth, the corresponding aggregate measure of want of social status is shown to be positively related to the Gini coefficient of wealth inequality. Hence, the Gini coefficient and growth are positively correlated, holding the population's wealth constant.

Original languageEnglish
Pages (from-to)171-176
Number of pages6
JournalReview of Development Economics
Volume10
Issue number1
DOIs
StatePublished - Feb 2006
Externally publishedYes

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