Divided We Stand
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Divided We Stand

Why Inequality Keeps Rising

In the three decades to the recent economic downturn, wage gaps widened and household income inequality  as measured by GINI increased in a large majority of OECD countries. This occurred even when countries were going through a period of sustained economic and employment growth. This report analyses the major underlying forces behind these developments. It examines to which extent economic globalisation, skill-biased technological progress and institutional and regulatory reforms have had an impact on the distribution of earnings. The report further provides evidence of how changes in family formation and household structures have altered household earnings and income inequality. And it documents how tax and benefit systems have changed in the ways they redistribute household incomes. The report discusses which policies are most promising to counter increases in inequalities and how the policy mix can be adjusted when public budgets are under strain.

"Analyses rely on simple statistical techniques that are accessible to a large readership... the graphic and charts are of great help to gain a quick visual grasp of the various issues addressed."

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    http://oecd.metastore.ingenta.com/content/8111111e.pdf
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Publication Date :
05 Dec 2011
DOI :
10.1787/9789264119536-en
 
Chapter
 

Changes in Redistribution in OECD Countries Over Two Decades You do not have access to this content

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    http://oecd.metastore.ingenta.com/content/8111111ec011.pdf
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/social-issues-migration-health/divided-we-stand/changes-in-redistribution-in-oecd-countries-over-two-decades_9789264119536-11-en
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Author(s):
OECD
Pages :
261–307
DOI :
10.1787/9789264119536-11-en

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This chapter takes stock of tax and transfer redistribution policies in OECD countries over the two decades preceding the global downturn in 2008. It begins by looking at evidence for the inequality-reducing effects of taxes and benefits. It considers trends in aggregate spending and revenues, shows how different components of taxes and benefits have evolved over time, and briefly discusses the influence of cyclical factors on the observed patterns. The chapter then uses household-income data to produce and compare a range of commonly used redistribution and progressivity indicators. Finally, it summarises policy changes and offers a detailed analysis of the role of policy in driving observed redistribution trends.
Also available in: French