Found 497 article(s) in category 'Q3: Inequality?'

Tackling Inequality from the Middle

Tackling Inequality from the Middle. Dani Rodrik, December 10, 2019, Opinion, “The rise of populist movements and street protests from Chile to France has made inequality a high priority for politicians of all stripes in the world’s rich democracies. But a fundamental question has received relatively little attention: What type of inequality should policymakers tackle?Link

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Compensation, Austerity, and Populism

Compensation, Austerity, and Populism. Jeffry Frieden, December 6, 2019, Paper, “The existence of comprehensive social policies to compensate those who might be harmed by integration is widely seen as an important precondition for public support for economic and political integration in western Europe. However, many western European countries reduced spending on income maintenance after 1990. In countries hard hit by the sovereign debt crisis, there have also been significant cuts to social services. We evaluate the impact of levels of social spending on public support for populist parties. We also evaluate the impact of austerity measures on support for such parties. We examine a panel of 187 elections from 1990-2017 and analyze pooled cross-sectional data from eight waves of the European Social Survey. We find evidence that populist parties fare worse where countries spend more on social support, and where spending has not been reduced from historical levels. On the other hand, where countries spend less on income maintenance, and/or have decreased spending from earlier levels, populist vote shares are consistently higher, and the likelihood of supporting populist parties greater. This relationship holds when controlling for a range of individual and macroeconomic factors, including occupational and educational characteristics, unemployment, economic growth, and immigration rates. The growing strength of populist political parties is rooted in long-term economic and cultural changes, but appropriate social policies may moderate their appeal.Link

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Why Countries Should Tax Global Income

Why Countries Should Tax Global Income. Ricardo Hausmann, December 4, 2019, Opinion, “More inclusive global growth in a world with free capital mobility does not require a “global” government that taxes and redistributes, but it does require global taxation and tax cooperation. Countries should be free to set their own taxes, but they should be required to share tax-relevant information.Link

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The Economic Context for Reforming the Safety Net

The Economic Context for Reforming the Safety Net. Karen Dynan, November 6, 2019, Paper, “As we wrestle with the future of our safety net and social insurance programs, it is important to understand not only the features and outcomes associated with individual programs but also the broader economic context. This reflection piece discusses several relevant aspects of the macroeconomy and of economic and financial conditions facing households: rising government debt, slower macroeconomic growth, limited tools to fight future recessions, greater income inequality, and the financial struggles of households. It goes on to draw lessons for how we should reform our system of entitlement programs.Link

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Income Inequality Affects Donations Only for High-Income People Who Feel Financially Insecure and Distrust Others

Income Inequality Affects Donations Only for High-Income People Who Feel Financially Insecure and Distrust Others. Ashley Whillans, 2019, Paper, “There is a growing debate about whether high-income individuals are more or less generous when income inequality is high. We advance this ongoing conversation by analysing a large and comprehensive data set with approximately one million respondents from 140 countries. In this data set, higher-income individuals who live in countries with greater income inequality are less likely to donate money to charity and are more likely to volunteer than their lower-income counterparts. Higher-income individuals who feel financially insecure or show distrust of others are especially unlikely to donate money to charity under high income inequality. These moderators do not influence rates of volunteering. Together, these results advance the debate regarding whether and when inequality shapes prosocial behaviour.Link

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Intelligent Design of Inclusive Growth Strategies

Intelligent Design of Inclusive Growth Strategies. George Serafeim, 2019, Paper, “Improving corporate engagement with society, as advocated in the Business Roundtable’s 2019 statement, should not be viewed as a zero-sum proposition where attention to new stakeholders detracts from delivering shareholder value. Corporate programs for sustainable and ethical sourcing practices, however, have fallen far short of solving the underlying causes of extreme poverty, extensive use of child labor, and threats to the environment and human health. We identify several causes to explain this disappointing shortfall in societal performance, including traditional company policies and incentives that inhibit the implementation of innovative, inclusive growth strategies. We propose the role for a new actor, a catalyst, to help companies forge new relationships with external funders, local intermediary companies, NGOs, and community leaders. The catalyst aligns the multiple stakeholders from multiple sectors into enduring, mutually- beneficial relationships that produce more value than that currently produced when stakeholders connect only by transactional relationships. The catalyst attracts funding from public and private sources to invest in the new ecosystem, which can generate attractive financial returns while alleviating poverty and environmental degradation. Finally, the catalyst engages the multiple participants to collectively co-create explicit strategies and scorecards of metrics, which serve to motivate, create accountability, and enable an enduring governance model for a multi-stakeholder ecosystem.Link

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Beyond Material Poverty: Why Time Poverty Matters for Individuals, Organisations, and Nations

Beyond Material Poverty: Why Time Poverty Matters for Individuals, Organisations, and Nations. Ashley Whillans, October 2019, Paper, “Over the last two decades, global wealth has risen. Yet, material affluence has not translated into time affluence. Instead, most people today report feeling persistently “time poor”—like they have too many things to do and not enough time to do them. This is critical because time poverty is linked to lower well-being, physical health, and productivity. For example, in our analysis of 2.5 million Americans, subjective feelings of time poverty had a stronger negative effect on well-being than being unemployed. However, individuals, organisations, and policymakers often overlook the pernicious effects of time poverty. Billions of dollars are spent each year to alleviate material poverty, while time poverty is often ignored or exacerbated. In this Perspective, we discuss the organisational, institutional, and psychological factors that explain why time poverty is often under appreciated. We argue that scientists, policymakers, and organisational leaders need to devote more attention and resources toward understanding and reducing time poverty to promote psychological and economic well-being.Link

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