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Does Inequality Matter?

How People Perceive Economic Disparities and Social Mobility

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The recovery after the COVID-19 crisis requires policies and reforms that tackle inequalities and promote equal opportunities. However, the implementation of such reforms requires widespread support from the public. To better understand what factors drive public support, this report provides a detailed cross-country analysis of people’s perceptions of and concern over inequality. It documents how concern over income disparities has risen in OECD countries over the long run. Nowadays, in most countries a large majority of the population believes that income disparities are too large and that intergenerational mobility is low. Yet, sufficient support for inequality-reducing policies may fail to arise if people do not agree on concrete policy options, or doubt the effectiveness of such policies. Moreover, even when the majority demands more equality, a divided public opinion can complicate the introduction of reforms. The report highlights how people within the same country are often divided as to the extent of inequality and what should be done to address this challenge. The report illustrates how the findings from analysis of perceptions and concerns can serve to inform policy making.

English Also available in: French

Overview

Although the post-COVID‑19 recovery will afford the opportunity to introduce reforms that address high levels of inequality, implementation will require widespread support from the public. To better understand what factors drive public support, the report conducts a detailed cross-country analysis of people’s perceptions of and concern about inequality of outcomes and opportunities. It documents how concern over income disparities have risen in OECD countries over time, mirroring the rise of income inequality measured by conventional indicators like those derived from household statistics. In most countries a large majority of the population now believes that income disparities are too wide and that intergenerational mobility is weak. Yet, sufficient support for inequality-reducing policies may not materialise if people fail to agree on concrete policy options or doubt their effectiveness. Moreover, even when the majority demands more equality, a strongly divided public opinion complicates the introduction of reforms. Indeed, the report highlights how people within the same country are often divided over whether inequality is too great and, if so, what governments should do to address the challenge. This chapter also looks at how the findings from analyses of perceptions and concern can inform policy making.

English Also available in: French

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