The Links between Finance and Inequality: Channels and Evidence

Much attention has been given to whether market reforms reduce or increase inequality. Inequality often reflects unequal access to productive opportunities and recent evidence has highlighted the presence of onerous barriers to entry, especially in developing countries. This paper focuses on the rel...

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Bibliographic Details
Main Authors:	Claessens, Stijn, Perotti, Enrico
Language:	English
Published:	Washington, DC: World Bank 2012
Subjects:	World Development Report 2006
Online Access:	http://hdl.handle.net/10986/9227

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spelling	okr-10986-92272021-04-23T14:02:44Z The Links between Finance and Inequality: Channels and Evidence Claessens, Stijn Perotti, Enrico World Development Report 2006 Much attention has been given to whether market reforms reduce or increase inequality. Inequality often reflects unequal access to productive opportunities and recent evidence has highlighted the presence of onerous barriers to entry, especially in developing countries. This paper focuses on the relationships between inequality and finance. In principle, a better financial system can help overcome barriers, and thereby increase economic growth and reduce inequality. It analyzes these various channels from inequality to financial sector reform and provides (case) evidence on them. The question of, how, given initial wealth and power distributions, financial (and other) reforms could be designed to improve access and prevent perverse outcomes. It concludes that more gradual reform allowing the buildup of various types of oversight institutions is necessary for countries with high inequality. 2012-06-26T15:41:59Z 2012-06-26T15:41:59Z 2005 http://hdl.handle.net/10986/9227 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Latin America & Caribbean East Asia and Pacific
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	World Development Report 2006
spellingShingle	World Development Report 2006 Claessens, Stijn Perotti, Enrico The Links between Finance and Inequality: Channels and Evidence
geographic_facet	Latin America & Caribbean East Asia and Pacific
description	Much attention has been given to whether market reforms reduce or increase inequality. Inequality often reflects unequal access to productive opportunities and recent evidence has highlighted the presence of onerous barriers to entry, especially in developing countries. This paper focuses on the relationships between inequality and finance. In principle, a better financial system can help overcome barriers, and thereby increase economic growth and reduce inequality. It analyzes these various channels from inequality to financial sector reform and provides (case) evidence on them. The question of, how, given initial wealth and power distributions, financial (and other) reforms could be designed to improve access and prevent perverse outcomes. It concludes that more gradual reform allowing the buildup of various types of oversight institutions is necessary for countries with high inequality.
author	Claessens, Stijn Perotti, Enrico
author_facet	Claessens, Stijn Perotti, Enrico
author_sort	Claessens, Stijn
title	The Links between Finance and Inequality: Channels and Evidence
title_short	The Links between Finance and Inequality: Channels and Evidence
title_full	The Links between Finance and Inequality: Channels and Evidence
title_fullStr	The Links between Finance and Inequality: Channels and Evidence
title_full_unstemmed	The Links between Finance and Inequality: Channels and Evidence
title_sort	links between finance and inequality: channels and evidence
publisher	Washington, DC: World Bank
publishDate	2012
url	http://hdl.handle.net/10986/9227
_version_	1764408946225840128

The Links between Finance and Inequality: Channels and Evidence

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