Report
Patrick Artus

Fight against inequality: Not just redistributive policies

When we talk about combating inequality, we most often consider using redistributive policies: public transfer payments to those with the lowest incomes combined with a redistributive tax to finance these transfers; But other ways to reduce inequality must also be considered. In particular, we see a significant link between employment rate and income inequality before redistribution, and a significant link between employment rate and labour force skills or education system efficiency: skill-supporting policies reduce income inequality and have a positive effect on the attractiveness of the economy, while redistributive policies lead to a high tax burden, which reduces attractiveness and, in the case of corporate taxes, have the perverse effect of reducing the employment rate and therefore increasing income inequality before redistribution. The priority should therefore be to reduce income inequality first without using redistributive policies, by acting on primary income inequality (before redistribution ).
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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Benito Berber
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