Innovation and Top Income Inequality
Philippe Aghion
(1, 2, 3)
,
Ufuk Akcigit
(4)
,
Antonin Bergeaud
(5)
,
Richard Blundell
(6)
,
David Hémous
(7)
1
PSE -
Paris School of Economics
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 University of Pennsylvania
5 Centre de recherche de la Banque de France
6 UCL - University College of London [London]
7 INSEAD - Institut Européen d'administration des Affaires
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 University of Pennsylvania
5 Centre de recherche de la Banque de France
6 UCL - University College of London [London]
7 INSEAD - Institut Européen d'administration des Affaires
Résumé
In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Innovation and Top Income Inequality
|
Résumé |
en
In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction.
|
Auteur(s) |
Philippe Aghion
1, 2, 3
, Ufuk Akcigit
4
, Antonin Bergeaud
5
, Richard Blundell
6
, David Hémous
7
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 1171428 )
- 48 boulevard Jourdan 75014 Paris
- France
3
Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
( 1043633 )
- 11 place Marcelin Berthelot F-75231 Paris Cedex 05
- France
4
University of Pennsylvania
( 115889 )
- 3451 Walnut Street, Philadelphia, PA 19104 | 215-898-5000
- États-Unis
5
Centre de recherche de la Banque de France
( 171776 )
- 31 rue Croix des petits champs 75001 PARIS - France
- France
6
UCL -
University College of London [London]
( 300875 )
- Gower Street, London WC1E 6BT
- Royaume-Uni
7
INSEAD -
Institut Européen d'administration des Affaires
( 505124 )
- Bd de Constance, 77305 Fontainebleau
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2019-01
|
Domaine(s) |
|
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