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 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
 

From Household Earnings to Disposable Household Income Inequality You do not have access to this content

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    http://oecd.metastore.ingenta.com/content/8111111ec010.pdf
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Author(s):
OECD
Pages :
225–258
DOI :
10.1787/9789264119536-10-en

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This chapter provides an overview of levels of and trends in household income distribution for the working-age population. It compares the size of the different components which make up total household income across countries and over time: wages and salaries, self-employment income, capital income, and taxes and benefits. The chapter examines the relative contributions of these various income sources to levels of and trends in overall household income inequality. It also identifies whether particular income sources influence overall inequality primarily through changes in their shares in total income or through changes in the way they are distributed.
Also available in: French