Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs

Abstract

This paper studies cross-country patterns of economic growth from the viewpoint of income distribution dynamics. Such a perspective raises new empirical and theoretical issues in growth analysis: the profound empirical regularity is an "emerging twin peaks" in the cross-sectional distribution, not simple patterns of convergence or divergence. The theoretical problems raised concern interaction patterns among subgroups of economies, not only problems of a single economy's accumulating factor inputs and technology for growth.