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Income Inequality and Employment Revisited: Can One Make Sense of Economic Policy?

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  • Rolph van der Hoeven

Abstract

This article discusses growing inequalities in the context of employment and labour market policies and how the latter can contribute to lowering inequalities. It discusses what is meant by income inequality, why it is remains important to focus on income inequality, which measures of income inequality are relevant and how we have arrived at growing income inequality. A last section reviews what can be done about growing inequality. The current situation is dominated by globalization, which has influenced the functioning and outcome of various aspects of the labour market. Greater attention to labour market institutions and greater coherence between economic and labour market policies is therefore necessary to stem growing inequality. Past examples of combining growth with equitable income distribution are often examples of restrained capitalism. Either social pacts or government bureaucrats and political elites provided the restraint. The current crisis and the public concern for improved income equality might engender renewed political will to make employment creation and income distribution important objectives for economic policy-making.

Suggested Citation

  • Rolph van der Hoeven, 2010. "Income Inequality and Employment Revisited: Can One Make Sense of Economic Policy?," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 11(1), pages 67-84.
    • Handle: RePEc:taf:jhudca:v:11:y:2010:i:1:p:67-84
    DOI: 10.1080/19452820903481459
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    References listed on IDEAS

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    1. Alice H. Amsden, 2007. "Escape from Empire: The Developing World's Journey through Heaven and Hell," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012340, December.
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    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Inequality and the Economic Participation of Women in Sub-Saharan Africa: An Empirical Investigation," Working Papers of the African Governance and Development Institute. 19/027, African Governance and Development Institute..
    2. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers 20/076, European Xtramile Centre of African Studies (EXCAS).
    3. Andrea Salustri & Federica Viganò, 2015. "Human development and well-being during the great recession. The non-profit sector as a capability enhancing workplace," BEMPS - Bozen Economics & Management Paper Series BEMPS27, Faculty of Economics and Management at the Free University of Bozen.
    4. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers of the African Governance and Development Institute. 20/076, African Governance and Development Institute..
    5. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 20/008, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    6. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Research Africa Network Working Papers 20/076, Research Africa Network (RAN).

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