Poverty and income inequalityEconomic inequalityIncome inequality the gap between rich and poorWidening wealth gapThe gap between rich and poor is becoming widerHow to solve the gap between rich and poorGovernments must tackle record gap between rich and poor ...
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05/12/2011 - The gap between rich and poor in OECD countries has reached its highest level for over over 30 years, and governments must act quickly to ... Share AtoZ × Menu Français ×Search OECDHome About Countries Afghanistan Albania Algeria Andorra Angola Anguilla AntiguaandBarbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Guernsey Jersey Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Venezuela BosniaandHerzegovina Botswana Brazil BritishVirginIslands BruneiDarussalam Bulgaria BurkinaFaso Burundi CaboVerde Cambodia Cameroon Canada CaymanIslands CentralAfricanRepublic Chad Chile ChineseTaipei^Taipei Colombia Comoros CookIslands CostaRica Côted'Ivoire Croatia Cuba Cyprus CzechRepublic DemocraticPeople'sRepublicofKorea DemocraticRepublicoftheCongo Denmark Djibouti Dominica DominicanRepublic Ecuador Egypt ElSalvador EquatorialGuinea Eritrea Estonia Ethiopia EuropeanUnion FaroeIslands Micronesia Fiji Finland RepublicofNorthMacedonia France FrenchGuiana Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras HongKong(China) Hungary 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UnitedStates UnitedStatesVirginIslands Uruguay Uzbekistan Vanuatu VietNam WallisandFutuna WesternSahara Yemen Zambia Zimbabwe Curaçao Bonaire Saba Topics AgricultureandfisheriesChemicalsafetyandbiosafetyCompetitionCorporategovernanceCorruptionandintegrityDevelopmentDigitalEconomyEducationEmploymentEnvironmentFinanceGreengrowthandsustainabledevelopmentHealthIndustryandentrepreneurshipInnovationInsuranceandpensionsInvestmentMigrationPublicgovernanceRegional,ruralandurbandevelopmentRegulatoryreformScienceandtechnologySkillsSocialandwelfareissuesTaxTrade Coronavirus(COVID-19) Français OECDHome NewsroomSociety:Governmentsmusttacklerecordgapbetweenrichandpoor,saysOECD Newsroom UpcomingeventsMediaregistrationContactus Society:Governmentsmusttacklerecordgapbetweenrichandpoor,saysOECD 05/12/2011-ThegapbetweenrichandpoorinOECDcountrieshasreacheditshighestlevelforoverover30years,andgovernmentsmustactquicklytotackleinequality,accordingtoanewOECDreport. “DividedWeStand:WhyInequalityKeepsRising”findsthattheaverageincomeoftherichest10%isnowaboutninetimesthatofthepoorest10% acrosstheOECD. Theincomegaphasrisenevenintraditionallyegalitariancountries,suchasGermany,DenmarkandSweden,from5to1inthe1980sto6to1today.Thegapis10to1inItaly,Japan,KoreaandtheUnitedKingdom,andhigherstill,at14to1inIsrael,TurkeyandtheUnitedStates. InChileandMexico,theincomesoftherichestarestillmorethan25timesthoseofthepoorest,thehighestintheOECD,buthavefinallystarteddropping. IncomeinequalityismuchhigherinsomemajoremergingeconomiesoutsidetheOECDarea.At50to1,Brazil'sincomegapremainsmuchhigherthaninmanyothercountries,althoughithasbeenfallingsignificantlyoverthepastdecade. >> DownloadtheunderlyingdatainExcel LaunchingthereportinParis,OECDSecretary-GeneralAngelGurríasaid“Thesocialcontractisstartingtounravelinmanycountries.Thisstudydispelstheassumptionsthatthebenefitsofeconomicgrowthwillautomaticallytrickledowntothedisadvantagedandthatgreaterinequalityfostersgreatersocialmobility.Withoutacomprehensivestrategyforinclusivegrowth,inequalitywillcontinuetorise.” Themaindriverbehindrising incomegapshasbeengreaterinequalityinwagesandsalaries,asthehigh-skilledhavebenefittedmorefromtechnologicalprogressthanthelow-skilled.Reformstoboostcompetitionandtomakelabourmarketsmoreadaptable,forexamplebypromotingpart-timeworkormoreflexiblehours,havepromotedproductivityandbroughtmorepeopleintowork,especiallywomenandlow-paidworkers.Buttheriseinpart-timeandlow-paidworkalsoextendedthewagegap. Taxandbenefitsystemsplayamajorroleinreducingmarket-driveninequality,buthave becomelesseffectiveatredistributingincomesincethemid-1990s.Themainreasonliesonthebenefitsside:benefitslevelsfellinnearlyallOECDcountries,eligibilityrulesweretightenedtocontainspendingonsocialprotection,andtransferstothepoorestfailedtokeeppacewithearningsgrowth. Asaresult,thebenefitsysteminmostcountrieshasbecomelesseffectiveinreducinginequalitiesoverthepast15years. Anotherfactorhasbeenacutintoptaxratesforhigh-earners. “Thereisnothinginevitableabouthighandgrowinginequalities,”saidMrGurría.“Ourreportclearlyindicatesthatupskillingoftheworkforceisbyfarthemostpowerfulinstrumenttocounterrisingincomeinequality.Theinvestmentinpeoplemustbegininearlychildhoodandbefollowedthroughintoformaleducationandwork.” TheOECDunderlinestheneedforgovernmentstoreviewtheirtaxsystemstoensurethatwealthierindividualscontributetheirfairshareofthetaxburden.Thiscanbeachievedbyraisingmarginaltaxratesontherichbutalsoimprovingtaxcompliance,eliminatingtaxdeductions,andreassessingtheroleoftaxesinallformsofpropertyandwealth,thereportsays. Watchvideoonthereport Downloadthetwo-pagecountrynotesfor Australia, Canada, France (en Français&English), Germany, Italy (in Italian&English),Japan (in Japanese&English), Mexico (in Spanish&English), Spain (in Spanish&English), UnitedKingdom andUnitedStates (+ data) MoreinformationaboutDividedWeStand,includingafour-pagesummary,isavailableatwww.oecd.org/els/social/inequality JournalistsseekingfurtherinformationoracopyofthereportshouldcontacttheOECDMediaDivisionatnews.contact@oecd.orgor+33145249700. RelatedDocuments
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