Two new papers challenge conventional approaches to reducing inequality. One shows that progressive taxes alone cannot reshape global income distribution without deeper changes to how market income is earned; the other argues that isolated interventions fail because disadvantages reinforce each other across interconnected systems.

New findings reveal that the ultra-wealthy have engineered a parallel tax system where legal mechanisms systematically erode the tax burden precisely at the highest echelons of wealth, undermining the foundational principle of progressive taxation.​

Research reveals that wage inequality in large cities stems from the concentration of high-paying employers, where workers climb steeper job ladders to achieve higher lifetime earnings despite lower initial wages. Simultaneously, market power amplifies wealth inequality by concentrating capital returns among the wealthy, reducing labor shares and hindering equitable growth.

A recent study highlights the dual impact of AI on workforce skills, with both complementary and substitutive effects observed across various occupations and industries. Meanwhile, the OECD 2023 Survey of Adult Skills highlights which countries’ labor force is ready for the AI-era.

A majority of adults in 36 surveyed countries call for major changes or complete reform of their economic systems. Economic inequality is cited as a significant factor.

A study finds that observed trends of rising inequality, slowing productivity growth, and differential inflation rates across income groups may be misleading about actual improvements in welfare. While another reveals a significant negative relationship between wealth inequality and economic growth.

The two papers analyze the impact of social preferences and digital goods on welfare and inequality in different contexts: one paper investigates how varying social welfare functions influence fiscal policies and inequality in France and the United States. The other paper measures the substantial unaccounted welfare gains from digital goods across multiple countries.

Are labor markets in higher-income countries more meritocratic? Does meritocracy drive the rich and the poor apart?

Two new research papers on the need to rethink human development by considering the contributions of population growth and the importance of global cooperation to address shared challenges in an increasingly polarized world.

A heterogeneous agent model that shows how inequality arises in economies that transition to different types of production. How does inequality contribute to financial instability?