IZA World of Labor – How can we reduce inequality?

IZA World of Labor – How can we reduce inequality?


There are numerous ways to reduce inequality and governments already do this with various policies: Transfer payments – from governments to individuals depending on their income status. These may equalise income across households. Governments also tax households. In most countries including even the US, taxes are proportionately greater on higher-income households, thus redistributing income towards lower income households. The extent to which countries do this will help reduce the amount of inequality after taxes in those societies and therefore also reduce spending inequality.

Author: Kennedi Daugherty

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