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A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia

综合 2025-02-05 世界银行 Franky!
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© 2024 International Bank for Reconstruction and Development / The World Bank1818 H Street NW Washington DC 20433Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclu-sions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or thegovernments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and doesnot assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use ofor failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, andother information shown on any map in this work do not imply any judgment on the part of The World Bank concerning thelegal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immu-nities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, thiswork may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution:Please cite the work as follows: World Bank (2024) “A Fresh Take on Reducing Inequality and EnhancingMobility in Malaysia”, World Bank, Washington, DC. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The WorldBank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. CONTENTS Acknowledgments��������������������������������������������������������������������������������������������������������������������������������������� 1 Overview��������������������������������������������������������������������������������������������������������������������������������������������������������2 1�Inequality: Concepts, measurement, and why it matters��������������������������������������������������������������� 7 1.1 Why should we care about inequality in Malaysia?............................................................................................81.2 Measuring inequality....................................................................................................................................................101.3 Mobility...............................................................................................................................................................................13 2�Inequality in Malaysia over the past two decades�������������������������������������������������������������������������� 15 2.1 Explaining inequality trends within the country..............................................................................................25 3�Economic mobility trends������������������������������������������������������������������������������������������������������������������ 34 3.1 Absolute income mobility..........................................................................................................................................353.2 Relative income mobility..........................................................................................................................................42 4�Understanding the drivers of inequality in Malaysia������������������������������������������������������������������� 44 4.1 Inequality framework: Assets....................................................................................................................................454.2 Inequality framework: Returns to assets in the labor market......................................................................51Inequality framework: Shocks........................................................................................................................................67Inequality framework: Taxes and public spending.................................................................................................73 5�Addressing inequality and promoting mobility: What can be done?����������������������������������������� 75 5.1 Increasing opportunities for all Malaysians........................................................................................................805.2 Strengthening social protection to address the needs at the bottom of the income distribution....................................................................................................................................................................................................845.3 Addressing spatial inequalities...........................................................................