OECD Journal: Economic Studies

Frequency
Semiannual
ISSN: 
1995-2856 (online)
ISSN: 
1995-2848 (print)
http://dx.doi.org/10.1787/19952856
Hide / Show Abstract

OECD Journal: Economic Studies publishes articles in the area of economic policy analysis, applied economics and statistical analysis, generally with an international or cross-country dimension. It draws significantly on economic papers produced by the OECD Economics Department, other parts of the OECD Secretariat and the Organisation’s intergovernmental committees.

Article
 

Can pro-growth policies lift all boats?

An analysis based on household disposable income You do not have access to this content

English
 
Click to Access: 
    http://oecd.metastore.ingenta.com/content/1315011ec004.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/can-pro-growth-policies-lift-all-boats_eco_studies-2015-5jrqhbb1t5jb
  • READ
Author(s):
Orsetta Causa, Alain de Serres, Nicolas Ruiz
22 Dec 2015
Pages:
42
Bibliographic information
No.:
7,
Volume:
2015,
Issue:
1
Pages:
227–268
http://dx.doi.org/10.1787/eco_studies-2015-5jrqhbb1t5jb

Hide / Show Abstract

In a majority of OECD countries, GDP growth over the past three decades has been associated with growing income disparities. To shed some lights on the potential sources of trade-offs between growth and equity, this paper investigates the long-run impact of structural reforms on GDP per capita and household income distribution. Pro-growth reforms can be distinguished according to whether they are found to generate an increase or a reduction in household disposable income inequality. Those that contribute to reduce inequality include the reduction in regulatory barriers to competition, trade and FDI, as well as the stepping-up in job search assistance and training programmes. Conversely, a tightening of unemployment benefits for the long-term unemployed is found to lift mean household income but to lower income among poorer households, thus raising inequality. Several other reforms have no significant impact on income distribution.

JEL Classification: 047, D37, E61
Keywords: Growth, inequality, pro-growth policies

 
Visit the OECD web site