King's College London

This article offers a multidimensional, interdisciplinary and dynamic framework for understanding socio-economic inequalities. It uses the tools of economic inequality measurement to demonstrate the link between interpersonal and categorical inequalities and to show the effect of progressive redistribution on both. It then presents two new concepts for analysing interactions between varieties of inequality: inequality re-ordering is defined as a reduction in categorical or group inequalities that leaves interpersonal inequality unchanged, and inequality diversion is defined as a reduction in one form of inequality that increases another form of inequality. The argument that inequality diversion arises across economic and social dimensions is illuminated through two case studies: the transition to increasing meritocracy, and the relationship between professional female labour market participation and domestic service. Exploring these relationships is essential to a joined-up approach to inequality reduction, enabling us to understand trade-offs and complementarities in tackling inequalities, and to identify policies required to reduce them.