Inclusive growth has been the exception globally, and will be a greater challenge in the future. Achieving it has to be central to our agenda, but requires rethinking and reprioritisation.
What’s at stake: According to some, 2016’s political turmoil shows that the so-called “losers” of globalisation are striking back. There is, however, little agreement on how government should respond to this challenge.
What’s at stake: historian James Truslow Adams, in his 1931 book The Epic of America, stated that the American dream is "that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement”. Few ideas have ever been as powerful as the “American Dream”, and many recent political events hinge on the fear that this “dream” may be dead. Meanwhile, researchers have been trying to measure the reality behind the dream.
Is technological progress behind growing income inequality? No, according to Zsolt Darvas, who argues that redistribution and the regulation of certain professions were more important factors.
How inclusive is growth in transition countries? Post-communist countries are becoming more prosperous but many people are being left behind, risking setbacks in political and economic development.
The properly measured EU-wide Gini coefficient of disposable income inequality shows that inequality in the EU as whole declined in 1994-2008, after which it remained broadly stable. However, within the EU, there are large differences in income inequality which require policy action.
Our early econometric analysis shows that Donald Trump performed more strongly in states with higher income inequality. He also did better in states with a higher share of less-educated, older, US-born and non-Hispanic voters.
Many Europeans have felt the effects of inequality due to the economic and financial crisis and stagnation. How can inequalities be tackled and which policies can support inclusive growth?
This Blueprint offers an in-depth analysis of inequalities of income and wealth in the EU, as well as their causes and consequences. How evenly are the benefits of growth distributed in our economies, and what does this mean for fairness and social mobility? How could and should policymakers react?
The idea of codetermination, i.e. the cooperation between management and workers in decision-making, has grown in popularity lately. We review the characteristics of codetermination in Germany and ask whether it could be a role model for the UK and the US.
Discussions on inequality are gathering momentum in policy and academia. One indication of this trend is the frequency of the word “income inequality” occurring in Google’s corpus of books in English (British and American) in the 20th Century.
Why is inclusive growth important and how do the EU’s social problems differ from social problems in other parts of the world?