Abstract
Rising income inequality has become a global trend. It is already well established that pronounced income inequalities not only constrain future growth potential but are also accompanied by unequal opportunities that have inimical social consequences. Income inequalities exhibit considerable variations across OECD countries, and growth performance records clearly demonstrate that there does not have to be a trade-off between growth and equality. Understanding the drivers behind growing income inequalities is essential to determining an appropriate inclusive development strategy. In this study, the “Partial Least Square” method is used to predict the Gini-coefficient of income inequality, using cross-sectional data from 30 OECD countries. Factors identified as explaining cross-country variations in inequalities include the ‘Palma’ ratio, working poor, NEET youth, child poverty, and public expenditure on active employment programs. The evidence suggests that social and labor market policies can be effective in tackling poverty and inequality.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
