Inequality, Employment and Public Policy

This paper examines dimensions of inequality including labour market inequalities and discusses public policies needed for reduction in inequalities. It discusses both inequality of outcomes and inequality of opportunities. In terms of income, India is the second most unequal country in the world after South Africa. Wealth inequalities are also high in India. Most of the inequalities will have a labour market dimension. Labour market inequalities can be found across sectors, wages and earnings, quality of work, labour market access and between organised and unorganised sectors. On public policies and inequalities, the paper discusses redistribution measures, macro-policies, sectoral policies and impact on employment, social policies such as education, health, hunger and malnutrition, social protection, corruption, gender disparities and climate change. The paper argues for fundamental changes to human capital and universal basic services. Investments in social infrastructure, health, education, affirmative action and provision of public services can lead to the creation of an egalitarian society.