Effects of Income, Gender and Wealth Inequality, and Economic Policies on Macroeconomic Performance.

Rebuilding Economics has funded a new study into the Effects of Income, Gender and Wealth Inequality, and Economic Policies on Macroeconomic Performance.

This is a pioneering interdisciplinary attempt at unifying evidence from sociology and gender studies in macroeconomics. The study will answer some fundamental questions on inequality and what can be done about them.

It is being worked on by a team of economists: Özlem Onaran, Cem Oyvat and Evrydiki Fotopoulou, and aims to explain the macroeconomic consequences of the interactions between three dimensions of inequality, labour markets and fiscal policies.

Why are there differences between women and men in the market place? Why do some people earn more or have different incomes to others? Why do a few people have such a high net worth, and so many have a relatively minute net worth? What government policies could help?

In exploring these areas, a unified analysis will be developed to integrate:

  • The impact of three dimensions of inequalities – functional income distribution between wages and profits, gender inequality, and wealth concentration, and their interactions.
  • Gendered behavioural differences and the role of social norms, synthesizing gender studies and macroeconomics; and thereby gendering macroeconomics.
  • The impact of labour market and fiscal policies, particularly the effects of government spending in social vs. physical infrastructure, and different types of taxation.

Özlem’s blog, “Where are women in macroeconomic models?” discusses the project in more detail, or you can visit the Rebuilding Macroeconomics site directly for more information.

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