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Income and Wealth Inequality in Asia and the Pacific: Trends, Causes, and Policy Remedies

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  • Juzhong Zhuang

Abstract

The Asia–Pacific region's rapid growth and poverty reduction in recent decades have been accompanied by rising income and wealth inequality. Technological progress, globalization, deregulation and market‐oriented reform, and financialization have generated many new opportunities, but rewarded capital more than labor, benefited skilled workers more than the unskilled, widened spatial inequality, and produced a growing number of the superrich. For some countries, population aging has also contributed to rising inequality. The present paper provides an update on recent trends of income and wealth inequality in the Asia–Pacific region, examines causes behind rising inequality, and discusses policy actions needed to tackle inequality. It also assesses how the COVID‐19 has likely worsened inequality in the region.

Suggested Citation

  • Juzhong Zhuang, 2023. "Income and Wealth Inequality in Asia and the Pacific: Trends, Causes, and Policy Remedies," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 15-41, January.
    • Handle: RePEc:bla:asiapr:v:18:y:2023:i:1:p:15-41
    DOI: 10.1111/aepr.12399
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    2. Chroufa, Mohamed Ali & Chtourou, Nouri, 2023. "Financial development threshold effect on wealth inequality-economic growth nexus: Evidence from MENA economies," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    3. Takatoshi Ito & Kazumasa Iwata & Cassey Lee & Colin McKenzie & Shujiro Urata, 2023. "Inequality, Social Justice and Welfare in Asia: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 1-14, January.
    4. Gao, Yanjie & Chen, Hang & Tauni, Muhammad Zubair & Alnafrah, Ibrahim & Yu, Jiaqi, 2024. "Unpacking the impact of financialization and globalization on environmental degradation in BRICS economies," Resources Policy, Elsevier, vol. 88(C).
    5. Bjorn Gustafsson, 2023. "Comment on “Income and Wealth Inequality in Asia and the Pacific: Trends, Causes, and Policy Remedies”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 45-46, January.
    6. Juzhong Zhuang & Peng Zhan & Shi Li, 2023. "Accounting for changes in income inequality in China, 2002–2018: evidence from household survey data," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(2), pages 3-26, November.
    7. Taiwon Ha, 2024. "COVID-19 and Household Wealth Heterogeneity: Evidence from South Korea," Hacienda Pública Española / Review of Public Economics, IEF, vol. 250(3), pages 69-88, September.
    8. Li Gan, 2023. "Comment on “Income and Wealth Inequality in Asia and the Pacific: Trends, Causes, and Policy Remedies”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 42-44, January.

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