This paper discusses how the adoption of pro-growth policies tends to result in lower levels of poverty, especially through opportunities for job creation. In particular, the paper calls for policies that promote greater access to credit and the protection of minority investors, in order to reduce such levels of poverty.

The relationship between income inequality and national savings is theoretically ambiguous, and past empirical studies have delivered mixed results. The authors of this paper revisit the question using a newly available source of data on inequality: the income share of the richest 10 percent and the richest 1 percent. Combining this with historical data on...