8.2.5—Equity/equality policies

Policies include progressive taxation, transfers, minimum wages, public education and health, targeted benefits, anti-discrimination rules and measures that improve access to assets or employment.

Evaluate each policy by the group reached, incentive response, administrative cost, incidence, time horizon and whether it changes opportunity or only current income. Universal and targeted approaches involve different coverage and stigma trade-offs.

A cash transfer can reduce current poverty quickly; high-quality early education may improve opportunity and future productivity but takes longer to show in income data.

A policy’s label does not prove who benefits: a statutory minimum wage can help some workers and reduce jobs for others depending on the labour market.