Sharing the Growth Dividend : Analysis of Inequality in Asia

Author/Editor:

Johanna Schauer ; Kalpana Kochhar ; Shi Piao ; Sonali Jain-Chandra ; Tidiane Kinda

Publication Date:

March 4, 2016

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper focusses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fast-growing Asian economies have been unable to replicate the “growth with equity” miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. It is imperative to address inequality of opportunities, in particular to broaden access to education, health, and financial services. Also fiscal policy could combat rising inequality, including by expanding and broadening the coverage of social spending, improving tax progressivity, and boosting compliance. Further efforts to promote financial inclusion, while maintaining financial stability, can help.

Series:

Working Paper No. 16/48

Subject:

English

Publication Date:

March 4, 2016

ISBN/ISSN:

9781513546544/1018-5941

Stock No:

WPIEA2016048

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

53

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