ranjan

Rising economic growth has reduced inequality in low-income and emerging market countries over the years. In good economic times, young people working helps reduce inequality in both groups of countries. But when growth slows down and jobs are lost, more young people out of work in low-income countries leads to a rise in inequality. In emerging markets, the story is a bit different. In good times, reduced unemployment explains about 41% of reduction in inequality in low-income and emerging market economies. Young people working more explains about over one-third of this reduction. In bad times,  28% of increase in inequality is due to an increase in unemployment. Thus, the increase in unemployment among young people is the main contributor to the rise in inequality. This difference could be due to even higher levels of self-employment and informality in low-income countries. Two policy implications comes out of the above which are as - 1) The quality of jobs created and policies t