NO : WP-2018-003
AUTHOR : S.Mahendra Dev
TITLE : Inequality, Employment and Public Policy
This paper examines dimensions of inequality including labour market inequalities and discusses public policies needed for reduction in inequalities. It discusses both inequality of outcomes and inequality of opportunities. In terms of income, India is the second highest inequality country in the world next to South Africa. Wealth inequalities are also high in India. Most of the inequalities will have labour market dimension. Labour market inequalities can be found across sectors, wages and earnings, quality of work, labour market access and, between organised and unorganised sectors. On public policies and inequalities, the paper discusses redistribution measures, macro policies, sectoral policies and impact on employment, social policies such as education, health, hunger and malnutrition, social protection, corruption, gender disparities and climate change. The paper argues for fundamentals change to human capital and universal basic services. Investments in social infrastructure, health, education, affirmative action and provision of public services can lead to the creation of egalitarian society.
Keywords : Inequality of outcomes, inequality of opportunities, consumption, income, wealth, labour market, wage inequality, fiscal policy, monetary policy, trade policy, human capital, health, education, informal sector, inclusive growth, corruption, gender, climate change
JEL Code : D63, E24, J28