01907cas a2200253 a 4500 AALejournalIMF019048 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484396988 1018-5941 BD-DhAAL BD-DhAAL Aiyar, Shekhar. Inequality of Opportunity, Inequality of Income and Economic Growth / Shekhar Aiyar, Christian Ebeke. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We posit that the relationship between income inequality and economic growth is mediated by the level of equality of opportunity, which we identify with intergenerational mobility. In economies characterized by intergenerational rigidities, an increase in income inequality has persistent effects-for example by hindering human capital accumulation- thereby retarding future growth disproportionately. We use several recently developed internationally comparable measures of intergenerational mobility to confirm that the negative impact of income inequality on growth is higher the lower is intergenerational mobility. Our results suggest that omitting intergenerational mobility leads to misspecification, shedding light on why the empirical literature on income inequality and growth has been so inconclusive. Mode of access: Internet Ebeke, Christian. IMF Working Papers; Working Paper ; No. 2019/034 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/034/001.2019.issue-034-en.xml IMF e-Library