Report
Patrick Artus

How can income inequality be reduced?

What policies should be pursued if income inequality is to be reduced (we take the example of France in this Flash)? Either reduce income inequality after redistribution by increasing the scale of redistributive policies. But the risk is that the tax increase that finances these policies will destroy jobs; Or reduce primary income inequality, before redistribution, which can be done by: Increasing low wages, with the risk that it will destroy low-skilled jobs; Increasing the employment rate (the negative correlation between employment rate and income inequality before redistribution is strong), by improving skills and reducing distortionary taxes.
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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