The consortium will address a wide range of inequalities and how these are modified by public policy in the short run and over a lifecycle. This information is a crucial input to government’s decision how to finance the welfare system and redistribute income while maintaining incentives to work and avoiding poverty traps. We will study extensions to the optimal redistribution model (Mirrlees 1971), considering choice between the channels of finance and redistribution, design of social insurance programs and the objectives of the government. We will investigate inequality developments using multidimensional and lifetime perspectives, and will provide detailed information on the dynamics of inequality, poverty, employment and health. We will provide new evidence on trends in job polarisation, nonstandard forms of employment and their consequences. We will evaluate how effective present day social and labour market policies are to meet ‘new social’ risks and new forms of employment.
Professor Matti Tuomala
University of Tampere