Inequality, Debt and Growth

Date: 01 May 2012

Both the rise in the importance of the financial sector and the rise in inequality were particularly marked in the UK. And the crisis and subsequent recession have been particularly severe here. So to understand why the crisis occurred, why the UK was so hard hit, and what policy should do now, it is essential to understand these interactions. This paper, prepared by NIESR for the Resolution Foundation, is one of the first contributions to our understanding in this area. While it does not claim to explain what happened, the evidence presented here does suggest that there may well have been a connection between the rise in income inequality in the years preceding the crisis and the rise in household borrowing, particularly for those on lower incomes.

Salvatore Morelli Paolo Lucchino

Employment, Equity and Growth

Inequality, Debt and Growth


Type: paper

Lucchino, P. & Morelli, S. (2012). 'Inequality debt and growth'. Resolution Foundation Report. Retrieved from https://www.resolutionfoundation.org/app/uploads/2014/08/Final-Inequality-debt-and-growth.pdf


View Document