Key to Reducing Inequality is Сreating New Jobs

8 february 2018

"If we want to analyze the situation with inequality around the world we have to differentiate between wealth inequality and income inequality," said Analytical Center expert Victoria Pavlyushina, speaking in the Civic Chamber at the conference ‘Social Inequality and How to Combat it.’

According to Ms. Pavlyushina, wealth inequality runs deeper and to a large extent is now becoming a more persistent foundation of society as wealth gets passed on from generation to generation.

Even as economic growth gathered momentum inequality did not diminish, in many countries the gap between the rich and the poor actually increased. The 'great recession' reduced the difference between the most affluent and the most destitute social groups, however, this happened primarily because during a recession profits tend to fall faster than worker pay.

Economic growth is bound to wipe out this transient reduction in inequality in short order, the expert presumes. The bulk of the social inequality we see today in Russia emerged in the 1990s and has since remained largely unchanged, even though it has followed the global fluctuations in inequality to a large extent.

"The key to reducing inequality is in the creation of new jobs as well as support of small businesses and startups," Ms. Pavlyushina summed up.

Photo: from open sources