Inclusive growth

Inequality can affect economic prospects

The issue of inequality has attracted significant public attention in the recent period, particularly in the aftermath of the pandemic. One of the popular views among economists and commentators is that the recovery from the pandemic has been led by corporate profits, and those dependent on wages, especially at the lower levels of the income pyramid, suffered disproportionately. Since there has been a visible formalisation of the economy, production seems to have moved from the unorganised sector, which tends to be more labour- intensive, to large firms. The argument is supported by the performance of different sectors. Sales of big