Toward a New Social Contract : Taking on Distributional Tensions in Europe and Central Asia

Cover -- Half Title -- Title -- Copyright -- Contents -- Foreword -- About the Authors and Contributors -- Acknowledgments -- Abbreviations -- Regional Classifications Used in This Report -- Overview -- Distributional Tensions and the Need to Rethink the Social Contract -- Equity: A Key Aspiration in the Region -- Balancing Markets, Policies, and Preferences -- The Market-Generated Distribution of Incomes -- Public Policy Responses -- Preferences for Equity -- Fissures in the Social Contract -- Looking Ahead: Public Policies for a Stable Social Contract -- Conclusion -- Notes -- References -- 1 Introduction -- Emerging Distributional Tensions in Europe and Central Asia -- The Potential Implications for the Social Contract -- Is a Rethinking of the Social Contract in the Region Warranted? -- Notes -- References -- 2 Are Distributional Tensions Brewing in Europe and Central Asia? -- Inequality across Individuals in Europe and Central Asia -- Labor Market Polarization and the Shifting Demand for Skills -- An Increasing Generational Divide, and the Young Are Losing Ground -- Persistent Spatial Disparities across the Region -- Rising Inequality of Opportunity, Particularly in the East -- Distributional Tensions and the Path to a Middle-Class Society -- Annex 2A. Statistical Tables -- Notes -- References -- 3 Are Public Policies Equipped to Respond to Distributional Tensions? -- Labor Markets Are Changing, and Policy Is Not Ensuring Equal Protection -- The Impact of Tax and Transfer Systems on Income Redistribution -- Limited Labor Mobility Affects the Opportunities in High-Productivity Areas -- Annex 3A. Decomposition Analysis: Drivers of Change in Redistribution -- Annex 3B. Policy Changes That Have Contributed to Redistribution -- Annex 3C. The Impact of Taxes and Transfers on Redistribution -- Notes -- References.