Sometime ago I saw a chart in a publication (might be THE ECONOMIST) and sources of the data in chart were "WORLD BANK & OECD." I am going to try to reproduce the chart below. TITLE: INEQUALITY AND LABOR PRODUCTIVITY: 1979 TO 1990 Labor productivity growth 4.0 | | +Finland 3.0 | | 3.0 +Japan | | 2.5 | +France | +Belgium +Denmark 2.0 +UK | +Italy | +Germany 1.5 + + +Norway +New Zeland | Sweden Netherlands | Switzerland 1.0 + + Australia | Canada + | USA 0.5 + | | 0*_________*_________*_________*_________*_________*_________*________*_ 4 5 6 7 8 9 10 Income inequality c. 1980 (top 20%/bottom 20%) My questions: 1) Is there inherent theoretical relationship (or is it just empirical relationship) between income inequality and productivity growth? 2) Does growth reduce income inequality or increase it? Why? 3) As you know, the conservatives tend to contend that the high rates of growth lessen income inequality. Since the chart empirically shows the relationship between income inequality and labor productivity growth, does income inequality retard labor productivity? Why? Thoughts on these questions are much appreciated. In struggle, Fikret Ceyhun Dept. of Economics e-mail: [EMAIL PROTECTED] Univ. of North Dakota voice: (701)777-3348 office University Station, Box 8369 (701)772-5135 home Grand Forks, ND 58202 fax: (701)777-5099