Sharing the Growth Dividend: Analysis of Inequality in Asia

By Sonali Jain-Chandra, Tidiane Kinda, Kalpana Kochhar, Shi Piao, Johanna Schauer

March 4, 2016

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Sonali Jain-Chandra, Tidiane Kinda, Kalpana Kochhar, Shi Piao, and Johanna Schauer. Sharing the Growth Dividend: Analysis of Inequality in Asia, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Education, Income distribution, Income inequality, Labor, Labor share, National accounts, Personal income

Keywords: Asia, Asia and Pacific, Benefits capital income, Consumption share, Countries effort, Entrepreneurial activity, Gini coefficient, Global, IMF staff calculation, Income distribution, Income inequality, Income share, Inequality, Inequality measure, Labor share, Net Gini in Asia, Net Gini in India, Per capita income, Personal income, Poverty rate, Reducing income gap, WP

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/048
Stock No:

WPIEA2016048
ISBN:

9781513546544
ISSN:

1018-5941

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