Ignorer la navigation
Redistribution, Inequality, and Growth
Report

Redistribution, Inequality, and Growth

IMF Staff Discussion Note

IMF, 2014

résumé audio créé automatiquement
résumé audio créé automatiquement

Editorial Rating

8

Qualities

  • Innovative

Recommendation

While the subject of income inequality gains headlines, real answers to the problem crash headlong into voters’ aversion to more taxes and bigger government. But economists at the International Monetary Fund take a practical look at new data that indicate the possibility of win-win solutions in addressing inequity while spurring growth. getAbstract recommends this timely investigation into the relationships among government redistribution, income inequality and economic growth to executives, policy makers and economists.

Take-Aways

  • Research shows that income inequality correlates to slower and more volatile growth.
  • Redistribution that enhances workforce productivity – such as government spending on education, health benefits and public infrastructure – supports growth.
  • Though it is unclear if the solution for inequity is greater redistribution through taxes and transfers, new research suggests that attempts to address inequality may be less damaging in terms of social cohesion and sustained growth than the inequality itself.

About the Authors

Jonathan D. Ostry, Andrew Berg and Charalambos G. Tsangarides are IMF economists.