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Rising Income Inequality in Wealthy Nations
Income inequality is rising in wealthy nations, despite economic growth. Technological advancements, globalization, and inadequate social safety nets contribute to this issue. Policy solutions must focus on income stabilization and risk mitigation.
Spanish
Spain
EconomyTechnologyLabour MarketInequalitySocial PolicyGlobalization
OecdEuropean UnionUned
Luis Ayala
- What are the consequences of income instability?
- Income instability is a major concern, leading to economic insecurity and hindering social mobility. Unexpected income drops negatively impact lives, and those with income insecurity are more vulnerable to automation and less likely to benefit from AI.
- What policy measures are suggested to address income instability?
- Addressing income instability requires public policies, particularly tax and benefit systems, to stabilize incomes and provide financial security. New tools are needed to reduce vulnerability to economic shocks and support adaptation to social transformations.
- What is the role of European tax and benefit systems in mitigating inequality?
- European tax and benefit systems are crucial for mitigating economic risks and ensuring income security, fostering social cohesion. Countries with stronger fiscal pressure and more generous social safety nets experience less inequality and greater intergenerational mobility.
- What are the new social risks associated with the digital and green transitions?
- The digital and green transitions pose new social risks, disproportionately affecting low- and middle-skilled workers. This exacerbates inequality and requires mechanisms to protect vulnerable populations and ensure equitable distribution of benefits.
- What is the main contradiction highlighted regarding economic growth and income inequality?
- Income inequality in wealthy countries has risen since the 1980s, contradicting the assumption that economic growth automatically reduces disparities. This is due to factors like technological changes favoring skilled workers, globalization, and weakened labor market institutions.