The New Economics of Inequality and Redistribution

Economists warn that policies to level the economic playing field come with a hefty price tag. But this so-called 'equality-efficiency trade-off' has proven difficult to document. The data suggest, instead, that the extraordinary levels of economic inequality now experienced in many economies are detrimental to the economy. Moreover, recent economic experiments and other evidence confirm that most citizens are committed to fairness and are willing to sacrifice to help those less fortunate than themselves. Incorporating the latest results from behavioral economics and the new microeconomics of credit and labor markets, Bowles shows that escalating economic disparity is not the unavoidable price of progress. Rather it is policy choice - often a very costly one. Here drawing on his experience both as a policy advisor and an academic economist, he offers an alternative direction, a novel and optimistic account of a more just and better working economy.

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'Over the past forty years, the gap between rich and poor has widened dramatically in many industrialised countries, and what Americans call the 'middle class' has shrunk. Samuel Bowles argues that, quite apart from its moral dimension, such inequality is economically inefficient. It leads to excessive expenditure on the enforcement of property rights and on crime prevention. It also reduces labour productivity. He argues that a redistribution of income and wealth would increase productivity and encourage entrepreneurship amongst social strata that are currently locked out of credit markets. These stimulating essays are a valuable contribution to the current debate about equality.' Robert Rowthorn, Emeritus Professor of Economics, University of Cambridge

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Product details

• Date Published: July 2012
• format: Hardback
• isbn: 9781107014039
• length: 208 pages

• dimensions: 216 x 140 x 15 mm
• weight: 0.39kg
• contains: 34 b/w illus. 1 table
• availability: Available