Conclusion: Growth-Enhancing Policies And Inequality

The following sections are included:Introduction and Main FindingsMain FindingsReducing Labor Income Inequality and Boosting GDP per Capita: Policy Trade-offs and ComplementaritiesGrowth-enhancing Policy Reforms that are Likely to Reduce Income InequalityImproving the quality and quantity of educationPromoting equity in educationReducing the gap between employment protection on temporaryand permanent workIncreasing the spending on ALMPsPromoting the integration of immigrantsFostering female labor market participationAvoiding gender stereotyping in educationFighting discriminationGrowth-enhancing Policy Reforms that are Likely to Raise Income InequalityIncreasing the flexibility of wage determinationGrowth-enhancing Policy Reforms that have an Uncertain Impact on Income InequalityAvoiding too high and long-lasting unemployment benefitsLiberalizing product marketsLowering minimum labor costsThe Inequality and Growth Nexus Associated with Taxes and TransfersGrowth-enhancing Tax Policy Reforms that are Likely to Reduce Income InequalityRe-assessing those tax expenditures that benefit mainlyhigh-income groupsReducing distortions in taxing capital incomeGrowth-enhancing Tax Policy Reforms that are Likely to Raise Income InequalityShifting the tax mix from personal and corporate income taxestoward real estate and consumption taxesGrowth-enhancing Tax Policy Reforms that have an Uncertain Impact on Income InequalityMoving from income to wealth or inheritance taxMoving from social security contributions (or flat labor incometaxes) to consumption taxesThe Impact of Transfer Policies on Growth Depends Very Much on Their DesignReferences