Issue, No.33 (March 2025)

Highlights from the 2nd III-LIS Comparative Economic Inequality Conference

Following the success of the Inaugural III-LIS Comparative Economic Inequality Conference in 2023 (London, UK), the 2nd III-LIS Conference was held on February 27-28, 2025, in Luxembourg. Similarly to the first edition, this conference brought together leading scholars, researchers, and policymakers from around the world to present and discuss the latest advancements in inequality research.

Organized by LIS and the UK LIS Satellite Office at the International Inequalities Institute (III) of the London School of Economics, and co-sponsored by the (LIS)²ER Initiative, the University of Luxembourg, and POST Luxembourg the conference featured 79 research papers, two keynote lectures, and a special event dedicated to the discussion of Professor Branko Milanovic’s (Stone Center on Socio-economic Inequality, The Graduate Center, CUNY) latest book, “Visions of Inequality: From the French Revolution to the End of the Cold War.”

The event opened with welcoming remarks from Francisco Ferreira (III & LIS UK Satellite Office) and Peter Lanjouw (LIS & VU Amsterdam). In their address, they applauded the success of the UK LIS Satellite Office in advancing the use of the LIS Databases both in the UK and globally while also serving as a key liaison between LIS and its data user community in the UK. They emphasised the significance of collaborative research efforts, particularly in light of the successful first edition of the conference, and highlighted the importance of fostering continued engagement through the 2nd III-LIS Comparative Economic Inequality Conference.

From left to right: Peter Lanjouw (LIS & VU Amsterdam) and Francisco Ferreira (III & LIS UK Satellite Office)

Exploring Economic Inequality: Key Themes and Discussions

The conference program consisted of 21 broad thematic sessions, organised across three parallel tracks, reflecting the diversity and complexity of contemporary inequality research. These sessions addressed key dimensions of economic inequality, offering new empirical insights and methodological advancements. With a strong comparative and interdisciplinary approach, participants examined pressing questions such as:

• How do economic policies impact wealth and income inequality?
• What role do gender and intergenerational mobility play in shaping disparities?
• How can inequality measurement be improved through methodological innovations?
• What lessons can be drawn from historical and cross-national comparisons?

Sessions on gender inequality explored the interplay between labour market trends and gender disparities, with studies highlighting the persistent earnings penalties for women, especially mothers. These inequalities also extended to wealth accumulation, posing significant challenges for single-parent households.

Building on the discussion of long-term economic disadvantages, several presentations examined broader inequality trends, including the impact of international migration, demographic changes, and economic growth on income distribution. One study explored global inequality trajectories before and after COVID-19, revealing how policy responses influenced different income groups. Similarly, research on the inflation crisis highlighted non-uniform effects on different households, revealing gender-specific coping mechanisms.

Closely linked to these long-term trends, intergenerational mobility and household wealth discussions emphasised how family background, residential segregation, and parental occupation shape economic opportunity and income mobility. Studies on childhood poverty and labour market outcomes provided new insights into long-term economic disparities across high-income countries, reinforcing the idea that economic disadvantage is often transmitted across generations.

In response to these inequalities, policy measures emerged as a key theme, with scholars examining the role of social policies, tax systems, and government interventions to reduce economic disparities. Presentations assessed the effectiveness of progressive taxation, wealth redistribution, and labour market regulations in addressing economic disparities, while one study assessed the impact of anti-corruption reforms on wealth concentration. More broadly, discussions showcased how differences in pension systems, housing policies, and financial market structures contribute to cross-national variations in socio-economic outcomes.

Methodological innovations in inequality measurement also received significant attention. Several presentations introduced advanced techniques for analysing economic disparities, including new approaches to integrating survey and administrative data. One study examined the income-wealth-emissions triangle using evidence from Italy, demonstrating how linking income and wealth data with carbon emissions can provide a more comprehensive understanding of economic and environmental inequalities. Additionally, researchers explored synthetic control techniques and enhanced distributional analysis using various administrative data sources to improve the accuracy and reliability of inequality indicators. Blending multiple data sources was highlighted as a key strategy to address underreporting and refine correction procedures, ultimately strengthening the robustness of inequality measures.

Keynote Insights: The Missing Rich and Wealth Redistribution

The conference featured two keynote lectures that delved into the complexities of economic inequality:

Professor Nora Lustig (Tulane University) delivered a compelling talk titled “Including the Rich in Income Inequality Measures: An Assessment of Correction Approaches.” She highlighted how traditional household surveys often fail to accurately capture the highest incomes, due to sampling errors, underreporting, and top coding. Lustig reviewed various correction methods researchers use to address this bias, focusing on reweighting, replacing, and hybrid approaches that combine both techniques. Her presentation underscored how inequality measures can be highly sensitive to methodological choices, with key implications for policy design and redistribution efforts. In addition to this, she emphasised the need to integrate tax records and other external data sources to improve accuracy.

Professor Nora Lustig giving the keynote lecture on Day 1

Professor Fabian Pfeffer (LMU Munich) delivered a keynote lecture on “Wealth Inequality and Redistribution”, offering a critical perspective on the staggering levels of wealth inequality in the U.S., particularly the widening gap between the top 1% and the bottom 10%. Using survey data, he examined how different taxation scenarios – ranging from moderate adjustments to extreme redistributive measures – could reshape wealth distribution and accumulation. Pfeffer made a compelling case for far-reaching interventions to curb today’s unprecedented concentrations of wealth, advocating for policies such as substantially higher top marginal tax rates, wealth taxation, and inheritance reforms. He argued that while such measures may seem revolutionary by today’s standards, historical precedents – such as mid-20th century tax regimes – demonstrate that they have been effectively implemented before. He acknowledged that the simulations he presented did not account for behavioural responses, yet he emphasised that this remains a vital avenue for research with significant public interest and policy relevance.

Professor Fabian Pfeffer giving the keynote lecture on Day 2

Special Event: Visions of Inequality

A special event, co-sponsored by POST Luxembourg, featured a discussion on Professor Branko Milanovic’s latest book, “Visions of Inequality: From the French Revolution to the End of the Cold War.” Milanovic engaged in a thought-provoking dialogue with Professors Francisco Ferreira (III & LIS UK Satellite Office) and Janet Gornick (Stone Center on Socio-economic Inequality, The Graduate Center, CUNY) reflecting on the historical evolution of global inequality and its implications for the 21st century. Around 150 local and international participants attended the event; a dedicated article in this Newsletter elaborates more about the special event.

From left to right: Janet Gornick (Stone Center/ City University of New York), Branko Milanovic (CUNY), Francisco Ferreira (III & LIS UK Satellite Office)

Venue: Salle Helix Cloud, POST Luxembourg headquarters, Luxembourg

Looking Ahead: Future Directions for Inequality Research

The conference reaffirmed the vital role of cross-disciplinary research and data innovations in tackling economic inequality. Discussions highlighted the importance of bringing together research, policy, and data, stressing that bridging the gaps is essential for developing more effective strategies to reduce inequality.

As the event drew to a close, the LIS and III teams thanked participants, emphasising the value of collaboration in advancing inequality research. The conference closed with a call for sustained engagement between academics and policymakers, ensuring that ongoing research initiatives and methodological advancements help shape future debates and drive meaningful change worldwide.

The conference presentations are now available online and can be accessed here.

From left to right: Xavier Jara (III, LSE), Philippe Van Kerm (University of Luxembourg & LIS), Francisco Ferreira (III, LSE & LIS UK Satellite Office), Peter Lanjouw (LIS & VU Amsterdam), Nora Waitkus (Heidelberg University &III, LSE), Teresa Munzi (LIS)