Poverty and income inequalityGlobal inequalityWidening wealth gapEconomic inequalityIncome inequality the gap between rich and poorHow to solve the gap between rich and poorSociety: Governments must tackle record gap between rich ...
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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 ... 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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 Iceland India Indonesia Iraq Ireland Iran IsleofMan Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kuwait Kyrgyzstan LaoPeople'sDemocraticRepublic Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau(China) Madagascar Malawi Malaysia Maldives Mali Malta MarshallIslands Mauritania Mauritius Mayotte Mexico Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands NewZealand Nicaragua Niger Nigeria Niue Norway Oman Pakistan Palau PalestinianAuthority Panama PapuaNewGuinea Paraguay China(People’sRepublicof) Peru Philippines Bolivia Poland Portugal PuertoRico Qatar Moldova Congo Romania Russia Rwanda SaintHelena SaintKittsandNevis SaintLucia SaintVincentandtheGrenadines Samoa SanMarino SaoTomeandPrincipe SaudiArabia Senegal Serbia SerbiaandMontenegro(pre-June2006) Seychelles SierraLeone Singapore SlovakRepublic Slovenia SolomonIslands Somalia SouthAfrica SouthSudan Spain SriLanka Sudan Suriname Eswatini Sweden Switzerland SyrianArabRepublic Tajikistan Thailand Timor-Leste Togo Tokelau Tonga TrinidadandTobago Tunisia Turkey Turkmenistan TurksandCaicosIslands Tuvalu Uganda Ukraine UnitedArabEmirates UnitedKingdom Tanzania 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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