What to do about income inequality

Sebastiano Fadda

Abstract


The first question dealt with in the paper is whether it’s worth worrying about unequal income distribution. The supposed long run constant factor shares, the positive effects of inequality and the greater importance of absolute level of income compared to its unequal distribution seems to deny this need. On the contrary,  economic, social and fairness reasons support the need to care about unequal income distribution. Therefore, measures should be taken about income inequality, and a distinction has to be made between measures to prevent excessive inequality from happening and measures to redistribute income once inequality has taken place. In order to envisage appropriate measures it is necessary to find out what causes the growing trend of increasing inequality in income distribution: economic and institutional factors are taken into consideration. Consequently a range of measures are suggested, which go from reducing the “degree of monopoly” in the economy to  regulating the financial system, from improving the system of collective bargaining to curbing the “predatory behaviour” of the executives. Redistribution measures are also discussed, with a warning about the risk of causing with them more harm than the inequality they are supposed to counteract.


Parole chiave


Income distribution; income inequality, redistribution

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DOI: http://dx.doi.org/10.14276/1971-8357.469

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Argomenti. Rivista di economia, cultura e ricerca sociale è una pubblicazione dell'Università di Urbino realizzata in collaborazione con la CNA delle Marche. Lo sviluppo e la manutenzione di questa installazione di OJS sono forniti da UniURB Open Journals, gestito dal Servizio Sistema Bibliotecario di Ateneo. E-ISSN 1971-8357 (Online). Registrazione presso il Tribunale di Urbino n. 4/2015.

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