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The Economics of Rising Inequalities (Paperback)
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The Economics of Rising Inequalities (Paperback)
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From New York Times best-selling author Thomas Piketty and noted
Professors of Economis Daniel Cohen and Gilles Saint-Paul, comes an
in-depth discussion of rising inequalities in the western world. It
explores the extent to which rising inequalities are the mechanical
consequence of changes in economic fundamentals (such as changes in
technological or demographic parameters), and to what extent they
are the contingent consequences of country-specific and
time-specific changes in institutions.
Both the 'fundamentalist' view and the 'institutionalist' view have
some relevance. For instance, the decline of traditional
manufacturing employment since the 1970s has been associated in
every developed country with a rise of labor-market inequality (the
inequality of labor earnings within the working-age population has
gone up in all countries), which lends support to the
fundamentalist view. But, on the other hand, everybody agrees that
institutional differences (minimum wage, collective bargaining, tax
and transfer policy, etc.) between Continental European countries
and Anglo-Saxon countries explain why disposable income inequality
trajectories have been so different in those two groups of
countries during the 1980s-90s, which lends support to the
institutionalist view.
The chapters in this volume show the strength of both views.
Through empirical evidence and new theoretical insights the
contributors argue that institutions always play a crucial role in
shaping inequalities, and sometimes preventing them, but that
inequalities across age, sex, and skills often recur. From Sweden
to Spain and Portugal, from Italy to Japan and the USA, the volume
explores the diversity of the interplay between market forces and
institutions.
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