•  
  •  
 

ORCID

Sonali Jain-Chandra 0000-0002-0860-2941

Tidiane Kinda 0000-0002-4367-8175

Kalpana Kochhar 0000-0002-5267-3317

Shi Piao 0000-0003-2649-9658

Johanna Schauer 0000-0002-0714-9903

Keywords

Inequality; Gini coefficient; Asia

Abstract

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 other 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.

Acknowledgments

The views expressed in this paper are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

First Page

5

Last Page

28

Page Count

24

Received Date

26 June 2018

Revised Date

Revised: 20 March 2019

Accept Date

8 April 2019

Online Available Date

4 September 2019

DOI

10.7172/2353-6845.jbfe.2019.2.1

JEL Code

D31; D63; O15

Publisher

University of Warsaw

Download

Share

COinS