The Impact of Income Inequality on Economic Growth: Evidence From U.S. State-Level Panel Data (1998–2018)
Abstract
This study investigates the relationship between income inequality and economic growth across U.S. states (1998–2018). Using fixed-effects regression on real Gross State Product (GSP) per capita and Gini coefficients, findings reveal a statistically significant positive association between inequality and economic output, while unemployment negatively affects growth. These results align with theories suggesting income disparity may spur expansion in high-income economies. Limitations regarding omitted socioeconomic variables are discussed.
Fields of Study & Subjects
Innovation and Knowledge Management
Organizational Leadership and Management Strategies
Business Strategy and Innovation
Publication details
- Journal / source
- Journal of Applied Business and Economics
- Publisher
- North American Business Press
- Volume
- 28
- Issue
- 1
- Publication date
- 13 February 2026