Sharing the Growth Dividend: Analysis of Inequality in Asia

Sonali Jain-Chandra, Tidiane Kinda, Kalpana Kochhar, Shi Piao and Johanna Schauer

No 2016/048, IMF Working Papers from International Monetary Fund

Abstract: This paper focusses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fast-growing Asian economies have been unable to replicate the “growth with equity” miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. It is imperative to address inequality of opportunities, in particular to broaden access to education, health, and financial services. Also fiscal policy could combat rising inequality, including by expanding and broadening the coverage of social spending, improving tax progressivity, and boosting compliance. Further efforts to promote financial inclusion, while maintaining financial stability, can help.

Keywords: WP; income share; consumption share; countries effort; Inequality; Gini coefficient; Asia; inequality measure; IMF staff calculation; entrepreneurial activity; reducing income gap; poverty rate; per capita income; benefits capital income; net Gini in India; net Gini in Asia; Income inequality; Income distribution; Personal income; Labor share; Asia and Pacific; Global (search for similar items in EconPapers)
Pages: 53
Date: 2016-03-04
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Citations: View citations in EconPapers (19)

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Journal Article: Sharing the Growth Dividend: Analysis of Inequality in Asia (2019)
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