Chart of the Week: Seeking Solutions to Growing Inequality

By IMFblog

As finance ministers and central banks gather in Washington this week for the spring meetings of the IMF and World Bank, income inequality will be among the topics of discussion.

While global economic integration has brought enormous benefits in the form of rising living standards, it has also contributed to widening inequality within some countries. In advanced economies, the incomes of the top 1 percent have grown three times faster than those of the rest of the population over the past three decades. (more…)

Drivers of Declining Labor Share of Income

By Mai Chi Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian

Versions in 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

After being largely stable in many countries for decades, the share of national income paid to workers has been falling since the 1980s. Chapter 3 of the April 2017 World Economic Outlook finds that this trend is driven by rapid progress in technology and global integration.

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Union of Labor and Growth

By IMFBlog

John Evans is Head of the Trade Union Advisory Committee to the Organisation for Economic Cooperation and Development, which represents some 65 million organized workers worldwide. In this podcast, he says that the labor market works much like any other market, driven by supply and demand, and the latter is very dependent on how well the economy is doing.  (more…)

Chart of the Week: Inequality and the Decline in Labor Share of Income

By IMFBlog

As discussed in the IMF’s G20 Note, and a blog last week by IMF Managing Director Christine Lagarde, a forthcoming chapter of the World Economic Outlook seeks to understand the decline in the labor share of income (that is, the share of national income paid in wages, including benefits, to workers) in many countries around the world. These downward trends can have potentially large and complex social implications, including a rise in income inequality.  (more…)

What to Do about Growth

camilla-andersen-may2015By Camilla Lund Andersen

Deep unease about rising inequality and stagnating living standards in advanced economies was at the heart of the 2016 political upheaval. Globalization and trade have been blamed, but entrenched slow growth—what economists call secular stagnation—may be the real culprit. Parents who took for granted that their children would enjoy a brighter future had their dreams dashed by the global financial crisis of 2008. Nine years later, rising populism and a return to nationalist, inward-looking policies threaten to unravel the postwar economic order.  (more…)

Chart of the Week: For India, Toilets Bring Benefits

By iMFdirect

Improving access to sanitation, an important Sustainable Development Goal, is essential for achieving gender equality and economic prosperity. It leads to increased female participation in the workforce, higher literacy and faster economic growth, according to the IMF’s latest research on India.  (more…)

The IMF’s Work on Inequality: Bridging Research and Reality

By Prakash Loungani and Jonathan D. Ostry

Versions in عربي (Arabic),  中文 (Chinese), Français (French), and Español (Spanish)

Over the past three decades, income inequality has gone up in most advanced economies and in many developing ones as well. Why? Much of the research on inequality has focused on advances in technology and liberalization of trade as the main drivers. While technology and trade are global trends that are difficult to resist, IMF studies have shown that the design of government policies matters and can help limit increases in inequality. (more…)

Chart of the Week: Access to Banking Services

By iMFdirect

Version in: Français (French), and Español (Spanish)

Did you know that while many people in advanced economies have multiple bank accounts, there are barely two bank accounts for every ten people in low-income economies? Access to financial services is essential to spread the fruits of economic growth to all, not just to the fortunate few.  (more…)

Chart of the Week: Growth and Inequality

By iMFdirect

Versions in Français (French), and Español (Spanish)

In the past two decades, low-income economies have seen a rise in growth, with fewer living in poverty. Yet inequality in many countries has remained virtually unchanged.

A recent IMF paper explains how the design of policies can matter to spread the economic benefits of growth more broadly. (more…)

Data and Inequality

by iMFdirect

Policymakers need good data to help them make good decisions.

Ravi Kanbur says producing statistics on inequality is never just a technical act; it has political consequences.  Kanbur is a Professor of Economics at Cornell University and delivered the keynote speech at the Fourth IMF Statistical Forum on Statistics for Inclusive Growth.

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