Inequality and policy: Theory and evidence

Income inequality remains a major social and economic challenge for both economic and political reasons. This paper shall aim to dissect and study a few of the aspects of the nature of inequality and policy. The first section of the paper serves as the introduction whereas the second section delves into the question of whether inequality is harmful or not. The third and the fourth sections elaborate on fiscal and social policies that deal with inequality. The fifth section presents case studies of countries’ experiences in dealing with inequality through policy and the last section concludes.