Would strengthening our social safety net and raising taxes help to nurture entrepreneurship spirit? These are some of a few out-of-the-box questions raised by prominent blogger Alex Au and economist Donald Low at a forum on income inequality earlier this week. Speaking first, Au said the government could explore the possibility of developing its domestic economy in order to reduce its dependency on foreign investments and workers. He also suggested the extended retention of foreign workers instead of importing them on short-term work permits in order to allow them to use the skills they have learned from working here to boost productivity.
This is a very timely topic. Improving social policy to make growth work for all and combat rising inequality is a pressing issue. Income inequality in OECD countries is at its highest level for the past half century.
Income inequality has economic and social consequences. It limits the capacity of an economy to grow and deliver better lives for its population. In Israel, income inequality has risen substantially over the past three decades, from already high levels.
In it had risen to 13 times. It is essential to reverse this trend. One of the most efficient tools to do so is by promoting high quality and inclusive education.
This is a particularly useful tool in Israel, given that almost half of all children starting primary school belong to low earning Arab-Israeli and Ultra Orthodox communities. Firstly, policymakers can improve outcomes in mainstream education, particularly for Arab-Israeli children.
Secondly, policymakers can foster universal quality of education, specifically in Ultra-Orthodox schools. Some progress has been made on these fronts. Additionally, there are plans to make day-care and early childhood education more widely available.
These initiatives provide a double dividend. They give children from disadvantaged groups a better start and help parents balance work and family commitments. However, there is still work to be done. Furthermore, test scores have widened between Arab-Israeli students and their Jewish counterparts.
No country can afford, either economically or socially, to raise children that lack basic numerical and literacy skills. It is therefore essential to reduce these performance gaps. But improving education is not the only policy tool to reduce inequalities. Education reforms can be further compounded by labour-market and social-policy measures.
Previous OECD assessments of Israeli social policy have consistently supported the introduction of an earned-income-tax credit. However, credits could be further increased to ensure that financial incentives work and to fight in-work poverty.
Our assessments have also supported the introduction of welfare-to-work programmes. But the welfare-to-work programme should not be abandoned altogether. Incentives for private employment agencies to place clients in regular jobs can be strengthened.
There is also room for improvement in vocational training and childcare. These measures must be reconsidered and revamped. Further reforms are also needed to tackle income inequality. Increases in work-tested income support can be a powerful tool for raising incomes in poor households.
These increases must be carefully chosen to maintain work incentives and to ensure proper targeting of poor and disadvantaged households. Schemes and initiatives targeting specific communities can also reduce income inequalities; investing in infrastructure in Arab localities provides one approach, targeted actions to eradicate discriminatory practices provide another.
This can be done by implementing existing public-sector employment minority quotas, guaranteeing equal professional opportunities for public-sector employees, and supporting private sector contractors who promote and practice equal opportunity.Despite the longer term trend of growing inequality, over the last 10 years, income inequality in Singapore has declined slightly.
The Gini coefficient has fallen from in to in After we account for government taxes and transfers, the figure was even lower at Wealth and income inequality are pressing global issues, affecting the quality of life for countless people, suppressing economic growth, stretching governments’ capabilities and destabilising social systems.
The good news? Politicians, corporations and investors can all do their part to enact change. Reinstates Into further widening of Income Inequality.
I would like to round off by saying that this is a pressing issue. If income inequality worsens, it may lead to further implications in terms of social disconnect, possible economic downturn as well as lead to political repercussions.
Feb 01, · Given expected onslaught of digital technology, it will become an ever pressing issue that successful technology policy needs to address.
Income inequality can also be . Even before the first speech on the hustings has been delivered, several issues, both old and new, have surfaced in recent weeks among the political parties in Singapore. Besides the economic issues of rising cost of living and income inequality, what do you consider to be the most pressing issues / problems in Singapore today?
(regardbouddhiste.comore) submitted 3 years ago by oneblackhairtie.