A good-quality public education is liberating for individuals. It can also be an equalizer within society. This report shows the unparallel power of public education to tackle growing inequality and bring us closer together. To achieve this , education must be both of good quality and equitable. It should be free, universal, adequately funded, with well supported teachers and accountable public oversight . Fairer taxation of the wealthies can help pay for it.

Income equality has increased in past decades. Top earners have captured a large share of the overall income gains , while for other income has risen only a little .

1) Education policies matter , policies that increase graduation rate form upper secondary and tertiory education and that also promote equal access to education help reduce inequality.

2) well-designed labour market policies and institutions can reduce inequality. A relatively high minimum wages narrows the distribution of labour income, butif set too high it may reduce employment, which dampens its inequality reducing effects .

3) Removing product market regulation that stifle competition can reduce labour income inequality by boosting employment. The empirical evidance for the link between product market reform and the dispersion of earning is rather mixed.