Poverty and income inequality

Raphaël Parchet, Frédéric Robert-Nicoud, 15 October 2021

The development of the Swiss highway network from 1960 to 2010 influenced the residential and job compositions of municipalities. The advent of an entrance/exit ramp within 10 km of a municipality caused a long-term 24% increase in the share of top-income taxpayers. The welfare gains of residents of connected municipalities relative to residents in non-connected municipalities range from only 2% for the low-income group to 12% for the top-income group. Highways also contributed to job and residential urban sprawl.

Seth G. Benzell, Victor Yifan Ye, 12 October 2021

Despite clear economic benefits of new digital technologies, slow median wage growth has led many to worry that these new technologies are failing to deliver for the average worker. This column develops a new model of global automation and technological change to study the long-term consequences of these trends. It finds that automation can boost output and growth, but these benefits are not equally distributed across or within regions. Nevertheless, in developed countries smart fiscal policy, such as universal basic income, can make new technologies a win-win for all age and skill groups. 

Marcin Bielecki, Michał Brzoza-Brzezina, Marcin Kolasa, 12 October 2021

By boosting labor incomes and asset prices, a monetary easing is often believed to benefit the vast majority of households. This column argues that this intuition is misleading, because the effect of asset price changes for households depends not just on asset holdings, but on their maturity structure, which is largely driven by life-cycle motives. A typical monetary policy easing redistributes welfare from older to younger generations. Moreover, the resulting asset price appreciation is harmful for households that accumulate housing and save for retirement.

Ulugbek Aminjonov, Olivier Bargain, Tanguy Bernard, 09 October 2021

In many countries, poorer people have been more exposed to Covid-19 as they cannot afford to stay at home instead of going to work. This column shows that in low- and middle-income countries, emergency income support schemes have significantly reduced differences in rates of contagion due to wealth or poverty status by allowing poorer people to also stay at home. As well as preserving livelihoods and alleviating poverty, income support has also been successful in curbing the spread of Covid-19.

Colin Gray, Adam Leive, Elena Prager, Kelsey Pukelis, Mary Zaki, 04 October 2021

Proponents of work requirements for social safety net programmes argue that they promote self-sufficiency by encouraging work, while opponents contend that they reduce benefits for the most vulnerable recipients in times of need. This column looks at the impact of the reinstatement of work requirements for the Supplemental Nutrition Assistance Program in the US following a hiatus during the Great Recession. The authors find that work requirements do not appear to improve economic self-sufficiency, while substantially reducing benefits paid to programme recipients.

Other Recent Articles:

Events

CEPR Policy Research