Growth and the distribution of its benefits: measurement and policy recommendations. ECLAC contribution to the G20 Framework Working Group

Addressing inequality fosters an enabling environment for innovation and capacity-building amid technological advancements, leading to economic growth and the strengthening of political institutions. Despite the increased focus on income inequality in recent years, its measurement remains a topic of discussion. This document highlights the need to improve the availability and timeliness of household surveys, national accounts and income tax records for a more complete picture of income distribution. Integrating these data sources through the construction of “distributional national accounts” provides a useful method for generating complementary indicators of income distribution. Advancing measurement methods is crucial for gaining a clearer understanding of the relationship between growth and inequality and for assessing the impact of various policies on resource distribution. Furthermore, socioeconomic inequalities extend beyond income and wealth, encompassing disparities in access to opportunities, capacities and participation in public decision-making. The report highlights key policy recommendations from the Economic Commission for Latin America and the Caribbean (ECLAC) to reduce income inequality, either directly or by addressing other forms of socioeconomic disparities. These policy actions include progressive taxation, productive development initiatives, addressing gender inequality, improving access to social protection, reducing labor informality and promoting education as a means of social mobility.