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Tackling inequality on all fronts (Amaglobeli & Thevenot)

Tackling inequality on all fronts by David Amaglobeli, Celine Thevenot published by IMF (3/2022).

“A comprehensive mix of fiscal policies can curb inequalities at every stage where they emerge

The COVID-19 pandemic appears likely to worsen inequalities in an enduring way, further widening the gap between haves and have-nots in advanced economies and reversing progress in developing economies. Many low-skilled workers, young people, and women have lost income and job opportunities. The pandemic has also accelerated long-term trends, such as automation and digitalization, that could soon make many jobs obsolete. Massive disruptions in learning threaten to leave long-lasting scars on opportunities for today’s youth. Unequal access to vaccines and lagging recoveries put low-income countries further behind.

Various aspects of inequality—in income, wealth, educational attainment, gender, health, opportunities—are closely related and mutually reinforcing. For instance, education and gender inequalities combine to weaken women’s ties to the labor market, which can lead to a lifetime of precarious employment or lower earnings. Similarly, inequalities in income can be perpetuated through lower intergenerational mobility. Given its complexities, a single policy tool cannot address inequality. A comprehensive policy approach is needed…”

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