The public sector and equality

Abstract

After years of neglect, inequality is back on the political agenda. The International Labour Organization has proposed the introduction of so-called social protection floors to tackle poverty in the age of globalization. However, little attention has been paid to the role of the public sector for limiting inequality. This is surprising in the light that new research shows the positive impact of public services such as health care and education for improving or maintaining equality. In some countries, access to public services is even more important in terms of redistribution than taxes and social benefits. Yet while the public sector hardly plays a role in discussions on equality, equality is mostly absent in the debates on public sector reforms. Here the main focus of the discussion is efficiency. The purpose of this article is twofold: on the one hand, it introduces the public sector as a major factor into the debates about inequality; on the other, it sheds light on the consequences of privatization, liberalization, and marketization of public services for equality.