In It Together: Why Less Inequality Benefits All
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In It Together: Why Less Inequality Benefits All

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.

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From chapter Overview of inequality trends, key findings and policy directions
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Graph
 

Graph 1.9 – In all OECD countries, women's employment put a brake on increasing inequality

Contribution of composition and wage structure effects (women) to percentage point changes in Gini of household disposable income, mid-1990s to 2007 or latest available pre-crisis year You or your institution have access to this content

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