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Rising Income Inequality: Do Not Draw the Obvious Conclusions

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  • Heiko Peters

    (Deutsche Bank Research)

  • Maya Volwahsen

Abstract

Inequality is dominating the political debate in various countries still characterised by sluggish economic recovery and high unemployment. The drivers of higher income inequality since 1995 have been globalisation, technological change and migration. At the same time, these factors have had an undeniably positive impact on aggregate income. While populist parties advocate more nationalistic-oriented approaches, we argue that the appropriate policy response to this dilemma is to alleviate the social costs of globalisation rather than rejecting the aggregate economic benefit.

Suggested Citation

  • Heiko Peters & Maya Volwahsen, 2017. "Rising Income Inequality: Do Not Draw the Obvious Conclusions," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 52(2), pages 111-118, March.
    • Handle: RePEc:spr:intere:v:52:y:2017:i:2:d:10.1007_s10272-017-0656-9
    DOI: 10.1007/s10272-017-0656-9
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    Cited by:

    1. Sher Khan, 2022. "Investigating the Effect of Income Inequality on Corruption: New Evidence from 23 Emerging Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2100-2126, September.
    2. Nolan, Brian & Richiardi, Matteo & Valenzuela, Luis, 2018. "The Drivers of Inequality in Rich Countries," MPRA Paper 89806, University Library of Munich, Germany.
    3. Tessa Conroy & Steven Deller & Philip Watson, 2021. "Regional income inequality: a link to women-owned businesses," Small Business Economics, Springer, vol. 56(1), pages 189-207, January.
    4. Ayfer Ozyilmaz & Yuksel Bayraktar & Esme Isik & Metin Toprak & Mehmet Firat Olgun & Serdar Aydin & Tuncay Guloglu, 2022. "The Impact of Refugees on Income Inequality in Developing Countries by Using Quantile Regression, ANN, Fixed and Random Effect," Sustainability, MDPI, vol. 14(15), pages 1-16, July.

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