Conditional cash transfer programs: Brazil’s Bolsa Família program provides conditional cash transfers to poor households to encourage children to attend school and receive healthcare. The program has been credited with helping to reduce poverty and income inequality in the country. Between 2001 and 2017, the proportion of the population living in poverty fell from 24.7% to 6.5%.
Progressive taxation: Sweden has a progressive income tax system that places a higher tax burden on those with higher incomes. In 2021, the top marginal income tax rate in Sweden was 57.2%. The policy has helped to reduce income inequality in the country, and Sweden consistently ranks as one of the most equal countries in the world.
Minimum wage laws: The United Kingdom has implemented minimum wage laws to ensure that workers are paid a fair wage. In 2021, the minimum wage in the UK was £8.91 per hour for workers aged 23 and over. The policy has helped to reduce income inequality in the country.
Education subsidies: Chile has implemented a range of education subsidies to help make education more accessible to low-income families. For example, the country’s Beca Indígena program provides scholarships to indigenous students to help cover the costs of education. The policy has helped to reduce poverty and increase educational attainment in the country.
Universal basic income: Finland has implemented a universal basic income pilot program to test the idea of providing a basic income to all citizens, regardless of their income or employment status. The pilot program provided 560 euros per month to a group of randomly selected participants for two years. While the results of the pilot were mixed, the policy has been proposed as a way to reduce poverty and income inequality in other countries as well.
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