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External Publication

Financial inclusion, rather than size, is the key to tackling income inequality

In this paper we assess empirically whether financial inclusion contributes to reducing income inequalitywhen controlling for other key factors, such as economic development and fiscal policy.

By: and Date: February 15, 2015 Topic: Finance & Financial Regulation

In this paper we assess empirically whether financial inclusion contributes to reducing income inequality when controlling for other key factors, such as economic development and fiscal policy. We conclude that financial inclusion contributes to reducing income inequality to a significant degree, while the size of the financial sector does not.

The policy implication of this result is that financial inclusion should be at the forefront of government policies to reduce income inequality in a given economy. Given the broad way in which we have defined inequality in our empirical analysis, this means facilitating the use of credit to bothhouseholds, especially low-income ones, as well as to small and medium-sized enterprises.

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Opinion

Downsides to Hong Kong’s untargeted cash handout

The stimulus is regressive in nature, as the bulk of expenditure is a one-off cash disbursement per adult

By: Alicia García-Herrero Topic: Global Economics & Governance Date: March 4, 2020
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Blog Post

What is fuelling the Dutch house price boom?

Housing prices have been rising fast in the West of the Netherlands in the last five years. However, mortgages outstanding have remained flat, raising the question of what has driven the increase. Evidence suggests that housing supply constraints have, this time around, played a role in pushing the house prices up.

By: Sybrand Brekelmans Topic: European Macroeconomics & Governance Date: February 19, 2020
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Blog Post

The EU’s poverty reduction efforts should not aim at the wrong target

The EU cannot meet its ‘poverty’ targets, because the main indicator used to measure poverty actually measures income inequality. The use of the wrong indicator could lead to a failure to monitor those who are really poor in Europe, and a risk they could be forgotten.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: February 18, 2020
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Blog Post

Cross-border, but not national, EU interregional development projects are associated with higher growth

Our calculations reveal that places where EU regional development projects bind together participants from different countries experience higher economic growth. Purely national interregional projects, on the other hand, are not associated with such benefits. The results hold across regions of different levels of income and consider the effects of other growth-determinants. Cross-border projects might bring efficiency gains, unlock synergies and provide knowledge transfers, boosting activity, with gains going beyond the projects’ scope. Cross-border projects could provide perhaps the only rationale for the continued cohesion/regional funding of more developed regions.

By: Zsolt Darvas, Jan Mazza and Catarina Midões Topic: European Macroeconomics & Governance Date: October 14, 2019
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Opinion

Germany’s Divided Soul

Eastern Germans vote, think, and feel differently than western Germans do, as the results of the September 1 regional elections make clear. To help tackle the underlying economic causes of this divide, the federal government should introduce incentives to encourage foreign investment in the east of the country.

By: Dalia Marin Topic: European Macroeconomics & Governance Date: September 13, 2019
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Past Event

Past Event

Financial inclusion of SMEs for growth and job creation

How can increased access to finance benefit SMEs? What reforms are needed to encourage SME financial inclusion?

Speakers: Jihad Azour, Bruno Balvanera, Zsolt Darvas, Barbara Marchitto, Anta Ndoye and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 21, 2019
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External Publication

Global interpersonal income inequality decline: The role of China and India

Without China and India, global interpersonal income inequality in 143 countries was higher in 2015 than in 1988. Has the rest of the world really become more equal?

By: Zsolt Darvas Topic: Global Economics & Governance Date: May 14, 2019
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Blog Post

EU enlargement 15th anniversary: Upward steps on the income ladder

Since their accession to the EU 15 years ago, the incomes of most central Europeans have increased faster than the incomes of longer-standing members and, thereby, they moved upwards in the EU distribution of income. Yet the very poorest people have not progressed in some countries.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: April 30, 2019
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Podcast

Podcast

Backstage: Policy principles for a new social contract

This episode of The Sound of Economics features Bruegel senior fellow Zsolt Darvas in conversation with Maurizio Bussolo and Bernadette Ségol about income inequality in Europe and Central Asia, and the policy principles underpinning a possible new social contract.

By: The Sound of Economics Topic: European Macroeconomics & Governance, Global Economics & Governance Date: January 24, 2019
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Opinion

Macroéconomie et gilets jaunes

Les analyses de la fronde des gilets jaunes ont surtout mis l’accent sur la répartition des revenus et des prélèvements entre catégories sociales et selon le lieu d’habitation. Lecture évidemment pertinente. Mais elle ne doit pas en occulter une autre, qui porte sur les évolutions d’ensemble des dix dernières années et sur ce qu’on peut anticiper pour les dix prochaines.

By: Jean Pisani-Ferry Topic: European Macroeconomics & Governance Date: December 4, 2018
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Past Event

Past Event

EU Financial Markets: East Meets West

Banking and financial regulation in the East and the West: links, differences and future.

Speakers: Nicolas Véron Topic: Finance & Financial Regulation Location: Collegium Iuridicum II, Lipowa 4, Hall A3, Warsaw, Poland Date: November 16, 2018
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External Publication

Examining interrelation between global and national income inequalities

The author contributed to the new issue of 'The Russian Journal of Economics' with a paper on the global dimension of the inequality trends

By: Marek Dabrowski Topic: Global Economics & Governance Date: November 15, 2018
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