Chart of the Week: Seeking Solutions to Growing Inequality
IMF Blog, April 17, 2017
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Bibliographic details
- Authors: The Editors
- Published: April 17, 2017
Key findings and context
- Global economic integration has brought "enormous benefits in the form of rising living standards," but "has also contributed to widening inequality within some countries."
- In advanced economies, the incomes of the top 1 percent "have grown three times faster than those of the rest of the population over the past three decades."
- Income inequality is a focal topic as finance ministers and central banks gather in Washington for the spring meetings of the IMF and World Bank.
Why inequality matters for policy makers
- When the benefits of growth are shared more broadly, "growth is stronger, more durable, and more resilient."
- Rising within-country inequality can undermine these desirable properties of growth.
Policy recommendations and ongoing work
- In a speech on April 12, IMF Managing Director Christine Lagarde outlined steps governments can take to help workers affected by labor-market dislocations:
- greater emphasis on retraining and vocational training
- job search assistance
- relocation support
- The IMF’s Fiscal Monitor, to be released on April 19, "explains how governments can use taxation and spending to ensure that growth is more equitable."
Source: Chart of the Week: Seeking Solutions to Growing Inequality (The Editors), April 17, 2017.
