Author(s): Anita Angelovska Bezhoska
Date published: Aug 2019
SUERF Policy Note, Issue No 91
by Anita Angelovska Bezhoska, National Bank of the Republic of North Macedonia
JEL-codes: D3, O11, O15, O43.
Keywords: capitalism, inequality, income gaps, equal opportunities.
The issue of inequality has come at the forefront in the last decade. The occurrence of the global financial crisis triggered the debate, as inequality was perceived as one of the roots of the crisis. Data evidence points to rising uneven income distribution from the 1980s onwards, yet with evident differences among countries. The divergence relates to educational inequalities, differences in tax progressivity, institutional quality. Given the erosion that unequal societies might face, policy makers should address the issue. Some of the available policy options are improvement of the access to markets and levelling the playing field, increasing financial inclusion, investing in human capital, regulatory and institutional reforms that strengthen the rule of law and promote competitive and fair business environments.
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