Implications of public policies performance on social inequality worldwide

Abstract

This study probes the linkage between public policy (represented by GDP growth, inflation, CO2 emissions, and unemployment factors) and social inequality indicators, paying attention to economic, environmental, and social elements. The study questions the impact of these policies on overall social inequality as one measure and its separate dimensions, which are gender, income, education, and life expectancy, whereas data was gathered between 2010 and 2021 from the World Bank and the United Nations Development Programme (UNDP) for 139 countries. The linear regression revealed a significant relationship that explained 51% of the variance in overall social inequality, except for unemployment. Regarding separate dimensions of social inequality, the findings point out that GDP growth and inflation both affect life and gender inequality, whereas unemployment only affects income inequality; on the other hand, the CO2 emissions factor has an inverse effect on all dimensions of inequality (income, life expectancy, education, and gender inequalities). Considering the implications, increased CO2 emissions would reduce income inequality by boosting job creation, but they also pose environmental and health hazards, necessitating sustainable development strategies. Rising unemployment exacerbates income distribution, demonstrating the need for policies that enhance job stability and reduce inequality. Additionally, it necessitates investing in healthcare and education, eradicating gender inequality, and implementing sustainable strategies to foster economic growth while considering the consequences of inflation on life and gender justice. Thus, realizing these principles would build a sustainable and equitable society that balances economic enhancement with environmental protection and achieves equal opportunity.