Two Is rising income inequality inevitable? A critique of the ‘Transatlantic Consensus’
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Tony Atkinson
Abstract
This chapter addresses one of the most important economic issues facing societies and the world as a whole: rising income inequality. It takes issue with two widely circulated assertions: that rising inequality is inevitable; and that the ‘Transatlantic Consensus’, or the proposition that increased inequality in the US and high unemployment in Continental Europe are due to a shift of demand away from unskilled workers towards skilled workers, is an acceptable explanation of that growth. The chapter shows how wage bargaining and income policies can influence the wages dispersion itself. It calls attention to the varying importance in different countries of redistributive policies, which have for many years exerted significant effects on the dispersion of after-tax incomes. Because economic growth has been uneven, the discussion argues that major lessons can be learnt from the variations in policy which caused that differential growth.
Abstract
This chapter addresses one of the most important economic issues facing societies and the world as a whole: rising income inequality. It takes issue with two widely circulated assertions: that rising inequality is inevitable; and that the ‘Transatlantic Consensus’, or the proposition that increased inequality in the US and high unemployment in Continental Europe are due to a shift of demand away from unskilled workers towards skilled workers, is an acceptable explanation of that growth. The chapter shows how wage bargaining and income policies can influence the wages dispersion itself. It calls attention to the varying importance in different countries of redistributive policies, which have for many years exerted significant effects on the dispersion of after-tax incomes. Because economic growth has been uneven, the discussion argues that major lessons can be learnt from the variations in policy which caused that differential growth.
Chapters in this book
- Front Matter i
- Contents iii
- Notes on contributors v
- Acknowledgements ix
- The human condition is structurally unequal xi
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International anti-poverty policy: the problems of the Washington Consensus
- Poverty, social exclusion and social polarisation: the need to construct an international welfare state 3
- Is rising income inequality inevitable? A critique of the ‘Transatlantic Consensus’ 25
- The international measurement of poverty and anti-poverty policies 53
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Anti-poverty policies in rich countries
- Social policy in the US: workfare and the American low-wage labour market 83
- A European definition of poverty: the fight against poverty and social exclusion in the member states of the European Union 119
- Welfare state solidarity and support: the Czech Republic compared with the Netherlands 147
- Targeting welfare: on the functions and dysfunctions of means testing in social policy 171
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Anti-poverty policies in poor countries
- Structural adjustment and mass poverty in Ghana 197
- Social funds in sub-Saharan Africa: how effective for poverty reduction? 233
- Urban water supply, sanitation and social policy: lessons from Johannesburg, South Africa 251
- Round pegs and square holes: mismatches between poverty and housing policy in urban India 271
- Urban poverty in China: incidence and policy responses 297
- ‘A new branch can be strengthened by an old branch’: livelihoods and challenges to inter-generational solidarity in South Africa 325
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Future anti-poverty policies: national and international
- Human rights, transnational corporations and the World Bank 351
- Are we really reducing global poverty? 377
- 1% of €10,000 billion 401
- Conclusion: constructing an anti-poverty strategy 413
- Manifesto: international action to defeat poverty 433
- Index of material and social deprivation: national (UK) and cross-national 437
- Index 443
Chapters in this book
- Front Matter i
- Contents iii
- Notes on contributors v
- Acknowledgements ix
- The human condition is structurally unequal xi
-
International anti-poverty policy: the problems of the Washington Consensus
- Poverty, social exclusion and social polarisation: the need to construct an international welfare state 3
- Is rising income inequality inevitable? A critique of the ‘Transatlantic Consensus’ 25
- The international measurement of poverty and anti-poverty policies 53
-
Anti-poverty policies in rich countries
- Social policy in the US: workfare and the American low-wage labour market 83
- A European definition of poverty: the fight against poverty and social exclusion in the member states of the European Union 119
- Welfare state solidarity and support: the Czech Republic compared with the Netherlands 147
- Targeting welfare: on the functions and dysfunctions of means testing in social policy 171
-
Anti-poverty policies in poor countries
- Structural adjustment and mass poverty in Ghana 197
- Social funds in sub-Saharan Africa: how effective for poverty reduction? 233
- Urban water supply, sanitation and social policy: lessons from Johannesburg, South Africa 251
- Round pegs and square holes: mismatches between poverty and housing policy in urban India 271
- Urban poverty in China: incidence and policy responses 297
- ‘A new branch can be strengthened by an old branch’: livelihoods and challenges to inter-generational solidarity in South Africa 325
-
Future anti-poverty policies: national and international
- Human rights, transnational corporations and the World Bank 351
- Are we really reducing global poverty? 377
- 1% of €10,000 billion 401
- Conclusion: constructing an anti-poverty strategy 413
- Manifesto: international action to defeat poverty 433
- Index of material and social deprivation: national (UK) and cross-national 437
- Index 443
