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Economic inactivity and progression

Economic inactivity and progression. Peter Robinson Senior Economist Institute for Public Policy Research. Two key research challenges. How do we explain why original (or gross or market) income inequality has been flat/wage inequality has not been rising at such a fast rate?

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Economic inactivity and progression

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  1. Economic inactivity and progression Peter Robinson Senior Economist Institute for Public Policy Research

  2. Two key research challenges • How do we explain why original (or gross or market) income inequality has been flat/wage inequality has not been rising at such a fast rate? • What combination of policy instruments could help bring about a significant reduction in inactivity?

  3. Key policy challenge 1 • A strategic choice between prioritising the reduction of inactivity or the promotion of progression (given the capacity constraints on Jobcentre Plus)

  4. Key policy challenge 2 • How to continue to make progress in enhancing benefits/tax credits in order to reduce poverty and improve incentives in a harsher fiscal climate.

  5. Key policy challenge 3 • Are we going to offer choice to adults in further education and training or an undifferentiated diet of level 2 NVQs?

  6. Key policy challenge 4 • What should the government use its remaining political capital with employers to achieve? (e.g. parental leave or training)

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