Shared Societies and the Global Crisis: Evidence and Policy
The recent global crisis has proved that the increase in income inequality observed over the last decades has not produced the expected effects on investments and growth. At the same time, this fact has amplified the message that there is still much work to do to ensure the social sustainability of globalization. The aim of this paper is to discuss the issue of income inequality in the context of the global crisis. In particular, it focuses on the inequality trends both before and after the current crisis and it examines the linkages between income inequality and the global economic and financial crisis. Furthermore, a set of policies and practices to correct these inequalities – notably, more well-designed labour market institutions, progressive taxation and social transfers – are discussed.
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