Leading economists and policymakers consider what economic tools are most effective in reversing the rise in inequality.Economic inequality is the defining issue of our time. In the United States, the wealth share of the top 1% has risen from 25% in the late 1970s to around 40% today. The percentage of children earning more than their parents has fallen from 90% in the 1940s to around 50% today. In Combating Inequality, leading economists, many of them current or former policymakers, bring good news: we have the tools to reverse the rise in inequality. In their discussions, they consider which of these tools are the most effective at doing so.

Introduction: We Have the Tools to Reverse the Rise in Inequality xiOlivier Blanchard and Dani RodrikI The Landscape 11 Ten Facts about Inequality in Advanced Economies 3Lucas Chancel2 Discussion of the Landscape 31Peter DiamondII Ethical and Philosophical Dimensions 393 Time for New Philosophical Foundations for Economic Theory? 41Danielle Allen4 What Kinds of Inequality Should Economists Address? 49Philippe Van Parijs5 Why Does Inequality Matter? 59T. M. ScanlonIII Political Dimensions 656 Wealth Inequality and Politics 67Ben Ansell7 The Political Conditions Necessary for Addressing Inequality 75Sheri Berman8 The Political Obstacles to Tackling Economic Inequality in the United States 85Nolan McCartyIV The Distribution of Human Capital 919 A Modern Safety Net 93Jesse Rothstein, Lawrence F. Katz, and Michael Stynes10 Education's Untapped Potential 99Tharman ShanmugaratnamV Policies toward Trade, Outsourcing, and Foreign Investment 10711 Why Was the "China Shock" So Shocking-and What Does This Mean for Policy? 109David Autor12 Trade, Labor Markets, and the China Shock: What Can Be Learned from the German Experience? 117Christian Dustmann13 Combating Inequality: Rethinking Policies to Reduce Inequality in Advanced Economies 125Caroline FreundVI The (Re)distribution of Financial Capital 13514 How to Increase Taxes on the Rich (If You Must) 137N. Gregory Mankiw15 Would a Wealth Tax Help Combat Inequality? 141Lawrence H. Summers16 Should We Tax Wealth? 153Emmanuel SaezVII Policies That Affect the Rate and Direction of Technological Change 16117 Could We and Should We Reverse (Excessive) Automation? 163Daron Acemoglu18 Innovation and Inequality 171Philippe Aghion19 Technological Change, Income Inequality, and Good Jobs 177Laura D'Andrea TysonVIII Labor Market Policies, Institutions, and Social Norms 19320 Gender Inequality 195Marianne Bertrand21 Ownership Cures for Inequality 201Richard B. FreemanIX Labor Market Tools 21122 Guaranteeing Employment for All 213William Darity Jr.23 Making Work Work 219David T. Ellwood24 The Importance of Enforcement in Designing Effective Labor Market Tools 227Heidi ShierholzX Social Safety Net 23525 Enhancing Micro and Macro Resilience by Building on the Improvements in the Social Safety Net 237Jason Furman26 The Social Safety Net for Families with Children: What Is Working and How to Do More 245Hilary HoynesXI Progressive Taxation 25327 Reflections on Taxation in Support of Redistributive Policies 255Wojciech Kopczuk28 Why Do We Not Support More Redistribution? New Explanations from Economics Research 263Stefanie Stantcheva29 Can a Wealth Tax Work? 271Gabriel ZucmanContributors 277Index 279