Report
Patrick Artus

Innovation, education and income inequalities

We can question whether innovation leads to a rise in income inequalities , since people that innovate successfully obtain high incomes; we can ask the same question for education: highly educated people also obtain high incomes, which may increase income inequality. Should we then accept a rise in the inequality in exchange for increased innovation or an improvement in the higher education system? It is also well known that different forms of inequality can have different reactions, for example average income inequality (GINI income inequality index) and extreme income inequality (percentage of national income received by the 1% of persons with the highest income). A comparison of the OECD countries shows that spending on innovation and lifting the level of education of the population reduce income average inequality and actually increase extreme income inequality. A rise in extreme income inequality must be accepted to reduce average income inequality.
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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