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31. Ups and Downs in Finance, Ups without Downs in Inequality

Author:
Olivier Godechot, Nils Neumann, Paula Apascaritei, István Boza, and Martin Hällsten
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
The upswing in finance over the past several decades has led to rising inequality, but do downswings in finance lead to a symmetric decline in inequality? In this paper, we analyze the asymmetry of the effect of ups and downs in financial markets, as well as the effect of increased capital requirements and the bonus cap on national earnings inequality. We use administrative employer–employee linked data on earnings from 1990 to 2017 for twelve countries. Additionally, we use data on earnings from bank reports, from 2009 to 2017 in thirteen European countries. We find a strong asymmetry in the effects of financial ups and downs on earnings inequality, a mitigating effect of rising capital requirements on the contribution of finance to inequality, and a restructuring effect of the bonus cap for the earnings of financiers, while neither policy affects absolute levels of earnings inequality.
Topic:
Financial Crisis, Regulation, Inequality, and Finance
Political Geography:
Europe

32. The Mediterranean Region: A Hotspot of Inequalities in the Aftermath of COVID-19

Author:
Farah Al Shami
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
The COVID-19 pandemic, which broke out in China in late 2019, reached the Mediterranean region by late winter 2020. While the impact of this crisis has been notorious on a global scale, it was remarkably more pronounced in the Mediterranean region as a result of economic fragility, exposure and transmissibility, and more importantly the quality of state and non-state responses which had a multidimensional multiplier effect on wealth distribution, access to health and education as well as other essential services, regional disparities and gender inequality, among others. Ever since its outbreak, COVID-19 has significantly exacerbated existing inequalities and has created new ones. It has also exacerbated vulnerabilities and created new forms of vulnerability, thus increasing the gaps on various levels between different social groups. These consequences were also more concentrated in the Mediterranean region as compared to the rest of the world, as the region had already been witnessing rising trends of inequality in the last decade, and especially before the pandemic hit, due to political instability, economic decay and inefficient public policies. While this reality has been experienced by both the northern and southern sides of the Mediterranean, it has been more intense in the latter. However, this is not to deny that constantly increasing inequalities in recent history has made both poles of the Basin much more susceptible to an enigmatic and acute shock such as COVID-19. The impact of COVID-19 on multifaceted inequality in the Mediterranean is neither consistent nor linear. The region has witnessed declines in several forms of inequality and surges in several others. Yet, the overall impact in terms of the number and magnitude of increased inequalities versus reduced ones is negative, making the Mediterranean a hotspot of inequality in the aftermath of the sanitary crisis. Moreover, amplified inequalities have manifested in the Mediterranean Basin in the form of inter-country inequalities and intra-country inequalities – the former being mostly part driven by inter-sectoral imbalances. Inter-country inequalities have likely further cemented the north-south divide in the Basin. This paper examines the different forms and faces of inequality in the region by trying to conceptualize the situations of different countries, despite their dissimilar and divergent contexts. It proves that COVID-19 has massively increased multidimensional inequality through various channels and at a relatively higher rate with respect to other regions. The paper also demonstrates that the Mediterranean is the microcosm of the north-south cleavage, as it is the closest place where the South meets the North, which makes it a natural starting point for dialogue concerning the north-south dichotomy and inequalities. As such, this paper highlights the need for tangible cooperation across borders, between sectors, and among citizens and their representatives, both within the region – between the North and the South – and with other regions, to advance reforms that address the factors of inequity and inequality in an already fragile and shaky regional context.
Topic:
Inequality, Public Health, Pandemic, COVID-19, and Health Crisis
Political Geography:
Africa, Europe, Middle East, and Mediterranean

33. Do gendered laws matter for women’s economic empowerment?

Author:
Marie Hyland, Simeon Djankov, and Pinelopi Koujianou Goldberg
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
reater legal equality between men and women is associated with a narrower gender gap in opportunities and outcomes, fewer female workers in positions of vulnerable employment, and greater political representation for women. While legal equality is on average associated with better outcomes for women, the experience of individual countries may differ significantly from this average trend, depending on the countries’ stage of development (as proxied by per capita GDP). Case studies from the Democratic Republic of the Congo, India, and Spain demonstrate this deviation. Especially in developing countries, legislative measures may not necessarily translate into actual empowerment, due mainly to deeply entrenched social norms, which render legal reforms ineffective. Women are more likely than men to be in vulnerable employment in low- and lower-middle-income economies but less likely than men to be in vulnerable employment in upper-middle- and high-income economies. Analysis of a 50-year panel of gendered laws in 190 countries reveals that country attributes that do not vary or change only slowly over time—such as a country’s legal origin, form of government, geographic characteristics, and dominant religion—explain a very large portion of the variation across countries. This finding suggests that the path to legal equality between men and women may be a long and arduous one. Nevertheless, the data also show that the past five decades have seen considerable progress toward legal gender equality. Gendered laws do evolve, suggesting a role for legal reforms in women’s economic empowerment.
Topic:
Gender Issues, Law, Women, Inequality, and Economy
Political Geography:
Africa, Europe, South Asia, India, Democratic Republic of the Congo, and Spain

34. Turning the Tide on Housing: Alternatives to the Modern Orthodoxies of North America and Europe

Author:
Paula Sevilla Núñez and Adam Almeida
Publication Date:
12-2021
Content Type:
Research Paper
Institution:
Center on International Cooperation (CIC)
Abstract:
This research paper analyzes six case studies across North America and Europe (Berlin, New York City, Seattle, Portland, Minneapolis, Barcelona, Lisbon, and Vancouver) where the orthodoxies of modern housing policy are being challenged. It also addresses the exclusionary practices and spatial inequality that have become common fixtures across the Global North. These fall under three distinct categories: protecting renters, building coalitions and new narratives, and curbing harmful demand.
Topic:
Inequality, Public Policy, Housing, and Rent
Political Geography:
Europe and North America

35. The Impact of the European Union-Mercosur Association Agreement on Gender Inequality: A Global South Perspective

Author:
Carolina Pavese
Publication Date:
08-2021
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
Globalization and trade liberalization have wide-ranging effects on employment, labor security, the environment, leading to processes with uneven gender consequences. Departing from a feminist approach, this study analyzes the potential impact of the latest EU-Mercosur Agreement on gender inequality. This research conducts a qualitative case-study focusing on the Mercosur, where women face already strong structural economic inequality . It argues that the adoption of a gender mainstreaming approach is essential for promotion of an interregional trade instrument that contributes to women’s economic empowerment. The main findings reveal that the sectors affected by trade liberalization are sensitive to female participation. Yet, the analysis has shown that the draft text negotiated is blind the unequal opportunities that interregional trade liberalization poses to men and women, at least in the case of the Mercosur. As the document is pending ratification, it can be modified. Therefore, the EU and Mercosur still could adopt provisions that account for the uneven gender impact of the agreement, fostering gender equality in the global South.Keywords: Trade liberalization;Gender inequality;EU-Mercosur agreement;ResumoGlobalização e liberalização comercial têm consequências abrangentes para o emprego, segurança do trabalho, meio ambiente, levando a processos com impactos de gênero desiguais. Partindo de uma abordagem feminista, este artigo analisa o potencial impacto do último Acordo UE-Mercosul na desigualdade de gênero. Esta pesquisa realiza um estudo de caso qualitativo com foco no Mercosul, onde as mulheres enfrentam já fortes desigualdade s econômicas estruturais. Este artigo argumenta que a adoção de uma abordagem de integração de gênero é essencial para a promoção de um instrumen to comercial inter-regional que contribua com o empoderamento econômico das mulheres. As principais conclusões revelam que os setores afetados pela liberalização do comércio são sensíveis à participação feminina. Ainda assim, a análise mostrou que o texto negociado é cego no que tange às oportunidades e desafiosque a liberalização do comércio inter-regional representa para homens e mulheres, pelo menos no caso do Mercosul. Como o documento está pendente de ratificação, ele pode ser modificado. Portanto, a UE e o Mercosul ainda poderiam adotar disposições que considerem o impacto desigual de gênero do acordo, fortalecendo a igualdade de gênero no Sul global.Palavras-chave:Liberalização comercial;Desigualdade de gênero;Acordo UE-Mercosul;Received: May 17,2021Accepted: August 20,2021Conflicts of interest: The author did not report potential conflicts of interests
Topic:
European Union, Employment, Inequality, Trade, Liberalization, and Gender
Political Geography:
Europe and Global South

36. Education and wage inequalities in Greece: access to higher education and its effects on income

Author:
Pery Bazoti
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The educational system in Greece has always been at the center of public discourse, not only for the shortcomings of its design, but also for the quality of the education offered. In this context, during the last decades, the rise in wage inequalities had led the literature to investigate the existence of a possible causal relationship between the level of education and income inequality. The present paper by Pery Bazoti examines the relationship between tertiary education and economic inequality. Taking into consideration the fact that potential inequalities in access to education can hinder the redistributive role of education, the starting point of the study is the access to tertiary education. The design and flaws of the Greek education system prevent university candidates from equal opportunities since the entrance to tertiary education institutions relies heavily on the economic background of their families. The economic crisis highlighted these inequalities mainly through the decline of the disposable household income and exacerbated the already crippled abilities of the education system due to the extensive cuts that took place during this time. Nevertheless, the data reveals that private expenditure -typically related to students’ preparation for exams for entrance into university, despite its decrease, continues to have the larger share of the households’ education budget.
Topic:
Education, Reform, Inequality, and Public Policy
Political Geography:
Europe and Greece

37. Four Years of Trump. The US and the World

Author:
Mario Del Pero, Paola Magri, Gary C. Jacobson, Michele Alacevich, Gabriella Sanchez, Scott L. Greer, Mario Del Pero, William F. Wechsler, and Erik Jones
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Unprecedented and unpredictable: this is how US President Donald Trump's administration has repeatedly been labelled. Beyond the frequent tweets and bombastic rhetoric, however, lie a more conventional four years, as the United States navigated an ever-evolving international reality, compounded by a global pandemic and one of the deepest economic recessions in over a century. This Report analyses the continuity and changes that occurred during Trump’s presidency. Domestically, it investigates the growing political polarization, the country's pre-pandemic economic performance, Trump's approach towards regular and irregular migration, and the US’ response to a healthcare emergency. At the international level, this volume looks at how the US stance has changed vis-à-vis China, the Middle East, and Europe. Which long-term trends has President Trump had to ride through? What was his trademark, and what might be his lasting legacy?
Topic:
Economics, Globalization, Immigration, European Union, Inequality, Economic Growth, Engagement, Donald Trump, COVID-19, Polarization, and Disengagement
Political Geography:
China, Europe, Middle East, North America, and United States of America

38. The Economic growth and income distribution implications of public spending and tax decisions

Author:
Zsolt Darvas
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The level and composition of public expenditures and revenues both have implications for economic development, as shown by the ‘fiscal multiplier’ and the ‘quality of public finance’ literature. Public finance decisions also influence the distribution of income. Based on a review of the literature, I argue for a fair distribution of income as reflected in low-income inequality, not particularly because of the impact of income inequality on long-term growth (which is a controversial issue), but primarily because income inequality typically implies inequality of opportunity. European Union countries have very diverse public finance structures and different levels of effectiveness and there is room for improvement in the growth and equality impacts in all countries. A general guideline would be that the most effective approach comprises progressive taxes and inheritance taxes, spending on education, health and public infrastructure, and better government effectiveness. At the height of the 2008 global crisis and the subsequent European financial and economic crises, the fiscal consolidation strategies of EU countries largely relied on cutting public investment and social spending (except pensions), which is the opposite of what is suggested in the literature. Better fiscal rules and good fiscal institutions are needed to safeguard growth- and distribution-friendly expenditures in a crisis.
Topic:
Governance, European Union, Inequality, Income Inequality, Tax Systems, Macroeconomics, Economic Development, and Public Spending
Political Geography:
Europe

39. The Implementation of the G7 and G20 Gender Equality Goals in Germany

Author:
Axel Berger, Sören Hilbrich, and Gabriele Köhler
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
In recent years, the Group of Seven (G7) and Group of Twenty (G20) have placed increasing emphasis on gender equality. As part of this focus, the member states of both institutions have set out a series of objectives aimed at advancing gender equality. This report examines the degree to which these goals have been implemented in Germany. First, the gender equality goals that both institutions have set out since 2009 are presented and systematised. The report then investigates the current state of progress in Germany and describes measures that have already been undertaken to implement the goals.
Topic:
Development, Gender Issues, G20, Women, Inequality, and G7
Political Geography:
Europe and Germany

40. The end of Oslo: A new European strategy on Israel-Palestine

Author:
Hugh Lovatt
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
European policy this year saw significant wins in Israel-Palestine: helping to block Donald Trump’s ‘peace’ plan and to avoid Israel’s de jure annexation of Palestinian territory. But Europe is failing to fundamentally challenge the worsening situation on the ground, which is storing up future instability and threatens European interests. The Oslo process is exhausted and a viable two-state outcome is slipping out of reach. Instead of its rigid focus on the Oslo peace process, the EU should craft a new peacemaking paradigm based on equality and deoccupation. The absence of a two-state solution will mean Israel ensuring equal rights for Palestinians in one democratic state. The EU should also deter Israeli settlement activity and push Palestinians towards political renewal as prerequisites for a future resolution of the conflict.
Topic:
Geopolitics, Inequality, Oslo Accords, and Instability
Political Geography:
Europe, Middle East, Israel, and Palestine