The gap between rich and poor keeps widening. Growth, if any, has disproportionally benefited higher income groups while lower income households have been left behind. This long-run increase in income inequality not only raises social and political concerns, but also economic ones. It tends to drag down GDP growth, due to the rising distance of the lower 40% from the rest of society. Lower income people have been prevented from realising their human capital potential, which is bad for the economy as a whole. This book highlights the key areas where inequalities are created and where new policies are required, including: the consequences of current consolidation policies; structural labour market changes with rising non-standard work and job polarization; persisting gender gaps; the challenge of high wealth concentration, and the role for redistribution policies.
Income inequality has reached record highs in most OECD countries and remains at even higher levels in many emerging economies. The richest 10 per cent of the population in the OECD now earn 9.6 times the income of the poorest 10 per cent, up from 7:1 in the 1980s and 9:1 in the 2000s, according to a new OECD report.
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This country note provides information on latest trends in income inequalities as well as key findings from the 2015 OECD report "In it Together: Why less inequality benefits all".
Today the OECD unveils its Better Life Index (BLI) in Italian. The BLI is an interactive online platform that offers important insights into how people perceive their own well-being and quality of life. For the first time, Italians will be able to access this instrument in their own language and find out how Italy compares to 35 other countries around the world across 11 dimensions of well-being.
Alcoholic beverages, and their harmful use, have been familiar fixtures in human societies since the beginning of recorded history. Worldwide, alcohol is a leading cause of ill health and premature mortality. It accounts for 1 in 17 deaths, and for a significant proportion of disabilities, especially in men. In OECD countries, alcohol consumption is about twice the world average. Its social costs are estimated in excess of 1% of GDP in high- and middle-income countries. When it is not the result of addiction, alcohol use is an individual choice, driven by social norms, with strong cultural connotations. This is reflected in unique patterns of social disparity in drinking, showing the well-to-do in some cases more prone to hazardous use of alcohol, and a polarisation of problem-drinking at the two ends of the social spectrum. Certain patterns of drinking have social impacts, which provide a strong economic rationale for governments to influence the use of alcohol through policies aimed at curbing harms, including those occurring to people other than drinkers. Some policy approaches are more effective and efficient than others, depending on their ability to trigger changes in social norms, and on how well they can target the groups that are most at risk. This book provides a detailed examination of trends and social disparities in alcohol consumption. It offers a wide-ranging assessment of the health, social and economic impacts of key policy options for tackling alcohol-related harms in three OECD countries (Canada, the Czech Republic and Germany), extracting relevant policy messages for a broader set of countries.
The recent riots in Baltimore following the death of Freddy Gray bring a tragic focus, once again, on inequality. Maryland’s largest city, Baltimore is a perfect laboratory to study it, thanks in part to the superb comparative statistics the city keeps. OECD Insights Blog.
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In November 2014, the G20 Leaders committed to reduce the gender labour force participation gap by 25% by 2025, as a collective commitment at G20 level. As an input to that decision, the G20 Labour and Employment Ministers issued a Declaration which included this issue and set forth 11 policy areas for potential action. This note proposes options and approaches for tracking the Leaders’ commitment to reduce the gender gap.
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Three out of four OECD countries use minimum wages, and supporting low-wage earners is widely seen as important for promoting inclusive growth. This policy brief considers three aspects that are central for a balanced assessment of policy choices: The cost of employing minimum-wage workers, their take-home pay, and the number of workers affected.
Blog: Anecdotal evidence suggests there are loads of grumpy old men and women around. A new, evidence-based report from the OECD offers some clues as to why this should be.
The world is still repairing the damage done to employment prospects and social equality by the crisis. Governments are trying to create not just more jobs, but better jobs. A new OECD framework helps them to define what job quality means and to measure whether their policies are succeeding.