Template-Type: ReDIF-Article 1.0
Author-Name: Samvel S. Lazaryan
Author-Email: lazaryan@nifi.ru
Author-Workplace-Name: Financial Research Institute, Moscow 127006, Russia
Author-Name: Mariya A. Chernotalova
Author-Email: mchernotalova@nifi.ru
Author-Workplace-Name: Financial Research Institute, Moscow 127006, Russia
Title: Global Risk of Rising Inequality
Abstract: This article addresses the problem of rising income inequality in developed countries. According to the latest research, although inequality can influence economic growth both positively and negatively and existence of both channels has been confirmed empirically, currently negative impact of income inequality on growth dominates. During the last 25 years technological progress and, to a lesser extent, global integration have been shaping a global trend of rising income inequality. Empirical evidence suggests that impact of these processes on income inequality has been uneven across various countries, and in 50 % of developed countries we do not find significant increase in income inequality during the last 25 years. At the same time, given that technological progress, automatization, trade and financial integration will probably gather pace, we should expect a more pronounced increase in income inequality in most of countries over the medium term. Improving quality of institutions and providing equal opportunities to all members of society should be the key components of policy response to this global risk of rising income inequality.
Classification-JEL: O15
Keywords: income distribution, inequality, Gini index, technological progress, globalization
Journal: Finansovyj žhurnal — Financial Journal
Pages: 34-46
Issue: 4
Year: 2017
Month: August
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2017/4/articles_2017_4/fm_2017_4_03.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:170403:p:34-46