Inequality and its impact on economic growth


This report Cingano, F. (2014), “Trends in Income Inequality and its Impact on Economic Growth”, OECD Social, Employment and Migration Working Papers, No. 163, OECD Publishing, studies income inequality and how it can have a sizeable and statistically negative impact on countries’ development.

The analysis shows the importance of a two-prong strategy to tackle inequality and promote access to public services for the entire population:

  •  It recommends that governments take a new look at their legislation and try to increase taxation for high-wealth brackets and eliminate or reduce the deductions from which these brackets benefit. It advises they implement mechanisms to promote and facilitate universal access to public services (universal health systems, education, etc).
  • It establishes a set of measure to promote investment in human capital. The study looks into the way income inequality makes it harder for people in the lower-income brackets to access education, especially quality education.