The pandemic and the Ukraine war have wrought significant hardship for many poorer countries and households. But average figures and blanket statements fail to account for important differences across income groups, not least the disproportionate increase in income gains for those at the bottom of the distribution.
MILAN – Economic policymakers around the world have struggled to stem rising inequality – a trend that has impeded economic growth, fueled populist electoral victories, and jeopardized liberal democracy. It was thus widely and understandably feared that unskilled workers would suffer deeply as a result of the COVID-19 crisis and, more recently, the energy-price shock that followed Russia’s full-scale invasion of Ukraine. But, in both cases, the impact has been relatively benign.
MILAN – Economic policymakers around the world have struggled to stem rising inequality – a trend that has impeded economic growth, fueled populist electoral victories, and jeopardized liberal democracy. It was thus widely and understandably feared that unskilled workers would suffer deeply as a result of the COVID-19 crisis and, more recently, the energy-price shock that followed Russia’s full-scale invasion of Ukraine. But, in both cases, the impact has been relatively benign.