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Sharing the Growth Dividend; Analysis of Inequality in Asia

Author

Listed:
  • Sonali Jain-Chandra
  • Tidiane Kinda
  • Kalpana Kochhar
  • Shi Piao
  • Johanna Schauer

Abstract

This paper focusses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fast-growing Asian economies have been unable to replicate the “growth with equity” miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. It is imperative to address inequality of opportunities, in particular to broaden access to education, health, and financial services. Also fiscal policy could combat rising inequality, including by expanding and broadening the coverage of social spending, improving tax progressivity, and boosting compliance. Further efforts to promote financial inclusion, while maintaining financial stability, can help.

Suggested Citation

  • Sonali Jain-Chandra & Tidiane Kinda & Kalpana Kochhar & Shi Piao & Johanna Schauer, 2016. "Sharing the Growth Dividend; Analysis of Inequality in Asia," IMF Working Papers 16/48, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:16/48
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    References listed on IDEAS

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    Cited by:

    1. Lee, Jong-Wha & Lee, Hanol, 2018. "Human Capital and Income Inequality," ADBI Working Papers 810, Asian Development Bank Institute.
    2. repec:eaa:aeinde:v:18:y:2018:i:1_8 is not listed on IDEAS
    3. Arifur Rahman, 2018. "Equitable Redistribution without Taxation: A lesson from East Asian Miracle countries," LIS Working papers 726, LIS Cross-National Data Center in Luxembourg.
    4. Yang, Yiwen & Greaney, Theresa M., 2017. "Economic growth and income inequality in the Asia-Pacific region: A comparative study of China, Japan, South Korea, and the United States," Journal of Asian Economics, Elsevier, vol. 48(C), pages 6-22.
    5. M Niaz Asadullah & Antonio Savoia & Kunal Sen, 2019. "Will South Asia achieve the Sustainable Development Goals by 2030? Learning from the MDGs experience," Global Development Institute Working Paper Series esid-126-19, GDI, The University of Manchester.

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