A Policy Matrix for Inclusive Prosperity

10 Pages Posted: 3 May 2021 Last revised: 20 Jul 2021

See all articles by Dani Rodrik

Dani Rodrik

Harvard University - Harvard Kennedy School (HKS)

Stefanie Stantcheva

Harvard University - Department of Economics

Date Written: April 2021

Abstract

One of the biggest challenges that countries face today is the very unequal distributions of opportunities, resources, income and wealth across people. Inclusive prosperity – whereby many people from different backgrounds can benefit from economic growth, new technologies, and the fruits of globalization – remains elusive. To address these issues, societies face choices among many different policies and institutional arrangements to try to ensure a proper supply of productive jobs and activities, as well as access to education, financial means, and other endowments that prepare individuals for their participation in the economy. In this paper we offer a simple, organizing framework to think about policies for inclusive prosperity. We provide a comprehensive taxonomy of policies, distinguishing among the types of inequality they address and the stages of the economy where the intervention takes place. The taxonomy clarifies the differences among contending approaches to equity and inclusion and can help analysts assess the impacts and implications of different policies and identify potential gaps.

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Suggested Citation

Rodrik, Dani and Stantcheva, Stefanie, A Policy Matrix for Inclusive Prosperity (April 2021). NBER Working Paper No. w28736, Available at SSRN: https://ssrn.com/abstract=3838502

Dani Rodrik (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

Stefanie Stantcheva

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

HOME PAGE: http://scholar.harvard.edu/stantcheva/home

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