IPSP authors Marc Fleurbaey (Steering Committee), Gianluca Grimalda (ch. 8), and Ingrid Woolard (ch.3), along with Romina Boarini and Orsetta Causa of the OECD, wrote a policy brief for the G20 meeting this summer (see announcement here). You can read the following excerpt or click the link to download the document.
Policy pillars of Inclusive Growth
The building blocks of inclusive growth policies: in seeking to make growth more inclusive, governments should focus on the following broad policy areas (see OECD 2017, chapter 2):
• Ensuring broad access to quality education and upskilling. Education shapes each individual’s life chances and is closely related to skills and training which in turn increasingly determine people’s ability to earn a decent living; education also provides dignity and enables citizens to fully participate in society. Policy reforms should address the needs of young people from preschool to university, so that they get the best start in life and the support they need throughout their education. The focus is on enhancing civic and cultural capabilities, equality of opportunities, and securing adaptability of the work force to increasingly rapid transformations in jobs and changing demand for skills.
• Lifting the quantity and the quality of jobs and addressing labour market insecurity and segmentation. Policy reforms should aim at creating quality jobs while integrating specific socio-demographic groups that are underrepresented in the workforce, most notably young people and women, and preserving the inclusion of senior workers. Governments must minimise the risk that vulnerable youth – such as early school leavers who are neither employed nor in education or training – will be permanently left behind in the labour market. Creating more and better jobs also requires tackling labour market duality and segmentation, including informality in the case of emerging economies. Social policies toward families and children can play a key role toward women’s participation, and contribute to gender equality.
• Enhancing the effectiveness of taxes and transfer systems in reducing income inequality and poverty. Many countries have room for making their tax and transfer systems more equitable and at the same time more efficient. This includes designing social transfers with a view to protecting individuals and families who need it while ensuring that work pays for those at the low-end of the income distribution and for women, as well to limiting tax breaks and allowances that disproportionately benefit high-income households.