Does income inequality feed the Dutch disease?

While much ink has been spilled over the study of income inequality and the Dutch disease in isolation from each other, little attention has been paid to the association between these subjects of interest. From this perspective, the present paper develops a two-sector growth model including two groups of workers (skilled and unskilled) with different consumption baskets. The model is induced by a relative real wage between sectors and between workers in the short-term (comparative static), while it is driven by the relative productivity growth and also a change in the relative consumption expe... Mehr ...