Labour markets, human capital and inequality

Less income inequality and more growth - Are they compatible? Associated graphs & tables

 

Graphs and figures in PDF format

There is no close link between inequality and growth

 

Source: OECD Income Distribution and Poverty (database), and OECD Economic Outlook Database.


 

Understanding inequality - from individual labour earnings to adjusted
household disposable income

 

Source: Hoeller, P., I. Joumard, M. Pisu and D. Bloch (2012), "Less Income Inequality and More Growth - Are They Compatible? Part 1. Mapping Income Inequality Across the OECD", OECD Economics Department Working Paper, No. 924


 

The divide between the rich and the poor is quite pronounced in some countries

 

Source: OECD Income Distribution and Poverty (database), OECD Social Expenditure Statistics (database).


 

Country groups with similar patterns of inequality

 

Source: Hoeller, P. et al. (2012), "Less Income Inequality and More Growth - Are They Compatible? Part 1. Mapping Income Inequality Across the OECD", OECD Economics Department Working Papers, No. 924, OECD Publishing.


 

Labour income inequality is the main contributor to the dispersion in household market income

Source: OECD Income Distribution and Poverty, OECD Social Expenditure Statistics (database).


 

Labour income inequality varies across countries and with the population group considered

Source: Based on Koske, I., J.-M. Fournier and I. Wanner (2012), “Less Income Inequality and More Growth – Are they Compatible? Part 2: The Distribution of Labour Income”, OECD Economics Department Working Papers, No. 925.


 

Workers on temporary contracts earn less than those on permanent ones


Source: Based on Fournier, J.-M. and I. Koske (2012), “Less Income Inequality and More Growth – Are They Compatible? Part 7: The Drivers of Labour Earnings Inequality – An Analysis Based on Conditional and Unconditional Quantile Regressions”, OECD Economics Department Working Paper, No. 930.


 

Immigrants earn significantly less than natives

 

Source: Based on Fournier, J.-M. and I. Koske (2012), “Less Income Inequality and More Growth – Are They Compatible? Part 7: The Drivers of Labour Earnings Inequality – An Analysis Based on Conditional and Unconditional Quantile Regressions”, OECD Economics Department Working Paper, No. 930.


 

Cash transfers vary greatly across countries, but less redistributive old age transfers often account for the bulk

Source: OECD Social Expenditure Statistics (database).


 

Top personal income tax rates were cut during the 2000s in most countries

Source: OECD (2009), OECD Tax Database.


 

Some structural policies benefit both economic growth and labour income equality but others may entail a trade-off

Source: The GDP per capita effects are based on the findings of previous OECD and other studies or deducted from the employment rate effect (e.g. Barnes, S., et al. (2011), “The GDP Impact of Reform: A Simple Simulation Framework”, OECD Economics Department Working Papers, No. 834, OECD Publishing; Bouis, R. and R. Duval (2011), “Raising Potential Growth After the Crisis: A Quantitative Assessment of the Potential Gains from Various Structural Reforms in the OECD Area and Beyond”, OECD Economics Department Working Papers, No. 835, OECD Publishing). The earnings and employment effects are taken from new OECD analysis reported in Koske, I., J.-M. Fournier and I. Wanner (2012), “Less income inequality and more growth – are they compatible? Part 2: The Distribution of Labour Income”, OECD Economics Department Working Papers, No. 925


 

The impact of tax reforms on economic growth and equality in disposable income

 

Source: Joumard, I., M. Pisu and D. Bloch (2012), “Less Income Inequality and More Growth – Are They Compatible? Part 3: Income Redistribution via Taxes and Transfers across OECD Countries”, OECD Economics Department Working Papers, No.926.

 

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