This paper was presented at the conference "Unequal incomes, unequal outcomes? Economic inequality and measures of well-being" as part of the closing discussion, "Social policy implications." The conference was held at the Federal Reserve Bank of New York on May 7, 1999. The author advocates the need to examine further the effectiveness of policy responses to inequality. He identifies three broad categories of policy responses worthy of study: policies aimed at investing in public goods to enhance human capital, policies that reward socially acceptable actions and provide economic mobility by increasing incomes (such as earned income tax credits), and policies that assist those individuals with the most serious physical and mental disabilities.
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Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review.
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