Special Issue on Income Distribution & Inequality; Guest Editor: Yuko Arayama, Nagoya UniversityNo Access

REDUCING INCOME INEQUALITY WHILE BOOSTING ECONOMIC GROWTH: CAN IT BE DONE? EVIDENCE FROM OECD COUNTRIES

PETER HOELLER

Organisation for Economic Co-operation and Development (OECD), OECD, 2, rue André Pascal, 75775 Paris CEDEX 16, France

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ISABELLE JOUMARD

Organisation for Economic Co-operation and Development (OECD), OECD, 2, rue André Pascal, 75775 Paris CEDEX 16, France

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, and

ISABELL KOSKE

Organisation for Economic Co-operation and Development (OECD), OECD, 2, rue André Pascal, 75775 Paris CEDEX 16, France

Corresponding author.

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https://doi.org/10.1142/S0217590814500015Cited by:14 (Source: Crossref)

Abstract

This paper identifies inequality patterns across Organisation for Economic Co-operation and Development (OECD) countries and provides new analysis of their policy and non-policy drivers. One key finding is that education and anti-discrimination policies, well-designed labor market institutions and large and/or progressive tax and transfer systems can all reduce income inequality. On this basis, the paper identifies several policy reforms that could yield a double dividend in terms of boosting GDP per capita and reducing income inequality, and also flags other policy areas where reforms would entail a trade-off between both objectives.

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