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Tendencies and Features of Income Inequality: Motivating Predistribution

Author

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  • Maurizio Franzini
  • Michele Raitano

Abstract

Income inequality raises serious problems because of its extent and its features. This paper starts from the empirical evidence on trends in disposable income inequality in the major OECD countries, distinguishing the roles played by market inequalities and by public redistribution. It then goes on to discuss,, on the one hand, the reasons why an anti-inequality strategy based on redistributive measures only, even if necessary, may not be enough and, on the other hand, the merits of a predistribution strategy, i.e. of measures designed to prevent the development of inequalities in the markets, acting both on individual endowments and on the rules supporting the functioning of the markets.

Suggested Citation

  • Maurizio Franzini & Michele Raitano, 2014. "Tendencies and Features of Income Inequality: Motivating Predistribution," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    • Handle: RePEc:rar:journl:0292
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    More about this item

    Keywords

    Economic inequality; Human capital; Redistribution; Predistribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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