How economic growth impinges on income inequalities?

This dissertation investigates the relationship between GDP and GNI per capita and income inequalities using panel data analysis for OECD countries between 1990 and 2019. The results show a U-shaped relationship for most inequality measures and the income of the top 10% of population, contradicting the Kuznets hypothesis. There is evidence that when GDP per capita is used, inequality is higher, leading to the conclusion that countries with policies that inflate GDP rather than GNI are the main contributors to the rise in inequalities. Moreover, the richer’s income follows the same behavioral pattern as income inequality. Lastly, it is possible to increase economic growth while minimizing inequalities.