Less income inequality and more growth - Are they compatible?

Income inequality has increased over the past decades in most OECD countries. In some countries, top earners have captured an overwhelming share of overall income gains, while for others, income hardly rose at all. There is growing consensus that the assessment of economic performance should not solely focus on overall income growth, but also take into account income distribution. The key question is: What are the policy reforms that would boost economic growth and at the same time reduce income inequality?

New OECD research – part of the wider Going for Growth structural reform programme - demonstrates how labour market reforms, tax and transfer systems and high-quality education can yield a double dividend: boosting GDP while reducing income inequality.

Webinar for the U.S. and Canada with:

  • Isabell Koske, Senior Economist, OECD Economics Department and
  • David Carey, Senior Economist and U.S. Desk Officer, OECD Economics Department.
 
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Related Publications

 

Divded We Stand: Why Income Inequality Keeps Rising

In the three decades prior to the recent economic downturn, wage gaps widened and household income inequality increased in a large majority of OECD countries. This occurred even when countries were going through a period of sustained economic and employment growth.

 

Growing Unequal? Income Distribution and Poverty in OECD Countries

Growing Unequal? brings together a range of analyses on the distribution of economic resources in OECD countries. The evidence on income distribution and poverty covers, for the first time, all 30 OECD countries in the mid-2000s, while information on trends extending back to the mid-1980s is provided for around two-thirds of the countries.

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