Sharing the Growth Dividend: Analysis of Inequality in Asia

54 Pages Posted: 6 Apr 2016

See all articles by Sonali Jain-Chandra

Sonali Jain-Chandra

Columbia University - Graduate School of Arts and Sciences - Department of Economics

Tidiane Kinda

International Monetary Fund (IMF)

Kalpana Kochhar

International Monetary Fund (IMF)

Shi Piao

International Monetary Fund (IMF)

Johanna Schauer

affiliation not provided to SSRN

Date Written: March 2016

Abstract

This paper focusses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fast-growing Asian economies have been unable to replicate the 'growth with equity' miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. It is imperative to address inequality of opportunities, in particular to broaden access to education, health, and financial services. Also fiscal policy could combat rising inequality, including by expanding and broadening the coverage of social spending, improving tax progressivity, and boosting compliance. Further efforts to promote financial inclusion, while maintaining financial stability, can help.

Keywords: Inequality, Gini coefficient, income, income inequality, consumption, income share, Personal Income and Wealth Distribution, Equity, Justice, and Other Normative Criteria and Measurement, All Countries,

JEL Classification: D31, D63, O15

Suggested Citation

Jain-Chandra, Sonali and Kinda, Tidiane and Kochhar, Kalpana and Piao, Shi and Schauer, Johanna, Sharing the Growth Dividend: Analysis of Inequality in Asia (March 2016). IMF Working Paper No. 16/48, Available at SSRN: https://ssrn.com/abstract=2759757

Sonali Jain-Chandra (Contact Author)

Columbia University - Graduate School of Arts and Sciences - Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

Tidiane Kinda

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Kalpana Kochhar

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Shi Piao

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Johanna Schauer

affiliation not provided to SSRN

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