Inequality reaches record highs

21/05/2015 (OECD Press Release) – Income inequality has reached record highs in most OECD countries and remains at even higher levels in many emerging economies. The richest 10 per cent of the population in the OECD now earn 9.6 times the income of the poorest 10 per cent, up from 7:1 in the 1980s and 9:1 in the 2000s, according to a new OECD report.

In It Together: Why Less Inequality Benefits All also shows that wealth is even more concentrated at the top than income, exacerbating the overall disadvantage of low-income households. In 2012, the bottom 40% owned only 3% of total household wealth in the 18 OECD countries with comparable data. By contrast, the top 10% controlled half of all total household wealth and the wealthiest 1% owned 18%.

“We have reached a tipping point. Inequality in OECD countries is at its highest since records began,” said OECD Secretary-General Angel Gurría, launching the report in Paris with Marianne Thyssen, European Commissioner for Employment, Social Affairs, Skills and Labour Mobility. “The evidence shows that high inequality is bad for growth. The case for policy action is as much economic as social. By not addressing inequality, governments are cutting into the social fabric of their countries and hurting their long-term economic growth.”

The report highlights the need to address working conditions. The increasing share of people working part-time, on temporary contracts or self-employed is one important driver of growing inequality. Between 1995 and 2013, more than 50 per cent of all jobs created in OECD countries fell into these categories. Low-skilled temporary workers, in particular, have much lower and instable earnings than permanent workers.

Youth are most affected: 40% are in non-standard work and about half of all temporary workers are under 30. They are also less likely to move from a temporary job into a stable permanent one.

Another key lesson from the report is that more needs to be done to reduce the gender gap. The increase in the number of women working has helped stem the rise in inequality, despite their being about 16% less likely to be in paid work and earn about 15% less than men. If the proportion of households with working women had remained at levels of 20 to 25 years ago, income inequality would have increased by almost 1 Gini point more on average.

Beyond its impact on social cohesion, the report stresses that growing inequality and weak opportunities in the labour market are harmful for long-term economic growth. The rise in inequality between 1985 and 2005 in 19 OECD countries analysed is estimated to have knocked 4.7 percentage points off cumulative growth between 1990 and 2010. In fact, it is inequality affecting the bottom 40% which mainly brings down overall growth. As inequality rises, families with lower socio-economic background experience significant falls in educational attainment and skills, implying large amounts of wasted potential and lower social mobility.

Inequality is highest among OECD countries in Chile, Mexico, Turkey, the United States and Israel and lowest in Denmark, Slovenia, Slovak Republic and Norway. Inequality is even higher in major emerging economies although it has fallen in many including Brazil.

To reduce inequality and boost inclusive growth, the OECD says governments should: promote gender equality in employment; broaden access to better jobs; and encourage greater investment in education and skills throughout working life.

Redistribution via taxes and transfers is also an effective way to reduce inequality. In recent decades, the effectiveness of redistribution mechanisms has been weakened in many countries. To address this, policies need to ensure that wealthier individuals, but also multinational firms, pay their share of the tax burden.

The full report and individual country notes for Australia, Canada, Chile, France, Germany, Italy, Japan, Mexico, Netherlands, Spain, United Kingdom, United States are available here: http://www.oecd.org/social/in-it-together-why-less-inequality-benefits-all-9789264235120-en.htm

To obtain a copy of the report or for further information or comment, journalists should contact the OECD Media Division (tel. + 33 1 45 24 97 00).

To coincide with the release of the report, the OECD has launched a new interactive web-tool, Compare your income. It enables users from different OECD countries to compare perceptions and realities, by looking at where they fit in their country’s income distribution. The tool is based on the most recent data from the OECD Income Distribution Database.

 

Source: http://www.oecd.org/social/reducing-gender-gaps-and-poor-job-quality-essential-to-tackle-growing-inequality.htm

 

Tagged: ,


Would you like to share your thoughts?

Your email address will not be published.

Legal note

1.    Terms and Conditions

2.    Privacy Policy

3.    Cookies Policy

 

1.    Terms and Conditions

Contact data for the web owner

This website has been created by KATOIKOS to promote their products and services.

– Name: Katoikos, S.L

– Co. tax Code:  B87123162

– Address:  Calle Campomanes 10, 28013  Madrid (SPAIN)

Registration details: Registered in the Commercial Register of Madrid.

Intellectual and Industrial Property

The various elements of this page, and website as a whole, are protected by Spanish legislation on intellectual and industrial property. The trademarks, trade names or logos appearing on this website are the property of the company, or, where appropriate, of third parties, and are protected by Trademarks Law, and of which KATOIKOS holds the legitimate license.

The information provided may not be used for commercial or public purposes, or modified. If the user downloads materials for personal and non-commercial use, warnings shall be kept about copyright and trademarks. To download and use the company logo that appears on the website, prior authorization is required.

Any unauthorised use of the images may violate copyright laws, trademark laws, the laws of privacy and publicity, and communications regulations and statutes.

Liability for Damage

KATOIKOS assumes no liability for damages you may suffer when browsing the web or in the use of computer applications that are part of it. Neither are warranties given as to the correction of malfunctions or updating of content.

Content you share with us

We may include features on this website that allow you to share your content with us and other users of the site. Please note that by sharing content it may become publicly accessible. You grant to Katoikos a worldwide, non-exclusive, transferable, royalty-free, perpetual, irrevocable right and license, without compensation to you:

 (a) to use, reproduce, distribute, adapt (including without limitation edit, modify, translate, and reformat), derive, transmit, display and perform, publicly or otherwise, such content, in any media now known or hereafter developed, for Kaotikos’ business purposes, and

 (b) to sublicense the foregoing rights, through multiple tiers, to the maximum extent permitted by applicable law. The foregoing licenses shall survive any termination of your use of the site, as further described below.

For all of the content you share through the site, you represent and warrant that you have all rights necessary for you to grant these licenses, and that such content, and your provision or creation thereof through the site, complies with all applicable laws, rules, and regulations and does not infringe or otherwise violate the copyright, trademark, trade secret, privacy or other intellectual property or other rights of any third party, and is furthermore free from viruses and other malware.

Rules of Conduct

When using this website and/or sharing content with us, you are prohibited from posting or transmitting :

1. any unlawful, threatening, defamatory, racist, obscene, scandalous, deceptive, false, fraudulent, inflammatory or profane material or any material that could constitute or encourage conduct that would be considered a criminal offence, give rise to civil liability, or otherwise violate any law.
2. Any virus, worm, Trojan horse, Easter egg, time bomb, spyware or other computer code, file, or program that is harmful or invasive or may or is intended to damage or hijack the operation of, or to monitor the use of, any hardware, software or equipment;
3. Any unsolicited or unauthorized advertising, promotional materials, “junk mail,” “spam,” “chain letter,” “pyramid scheme” or investment opportunity, or any other form of solicitation; and
4. Any material non-public information about a person or a company without the proper authorization to do so.

In addition, you will not:

1. Use this website for any fraudulent or unlawful purpose;
2. Interfere with or disrupt the operation of the website or the servers or networks used to make the website available; or violate any requirements, procedures, policies or regulations of such networks;
3. Access or use this website through any technology or means other than those expressly designated by us.
4. Restrict or inhibit any other person from using this website (including by hacking or defacing any portion of the website);
5. Except as expressly permitted by applicable law, modify, adapt, translate, reverse engineer, decompile or disassemble any portion of this website.
6. Remove any copyright, trademark or other proprietary rights notice from this website.
7. Frame or mirror any part of the webiste without our express prior written consent;
8. Create a database by systematically downloading and storing all or any content;
9. Use any robot, spider, site search/retrieval application or other manual or automatic device to retrieve, index, “scrape,” “data mine” or in any way reproduce or circumvent the navigational structure or presentation of this website, without our express prior written consent.

Links

Kaotikos  reserves the right to remove any messages or statements or cancel any links.

This site may include hyperlinks to other web sites that are not owned or controlled by Katoikos. Katoikos has no control over, and assumes no responsibility for, the content, privacy policies, security or practices of any third party websites.

Content may be hosted on YouTube or other social media. Those operate their own set of terms and conditions and privacy policy which are separate to the ones presented on this website. Katoikos no control over and assumes no responsibility for, the content, privacy policies, security or practices on YouTube or other social media.

 The right to terminate your access

Katoikos reserves the right to terminate your access to this website at any time if you do not comply with these Terms and Conditions or you infringe Kaotikos’ rights in the content provided on this website.

Governing Law

These Terms and Conditions are governed by and construed in accordance with the laws of Spain, without regard to its choice of law provisions.  You agree to the exclusive jurisdiction by the courts of Spain.

Changes to the Terms

Katoikos reserves the right to make changes to the Terms and Conditions from time to time. You acknowledge and agree that your continued access to or use of this website will constitute your acceptance of such changes.

2.    Privacy Policy

Kaotikos takes the protection of your personal data very seriously and collects, processes and uses your data only in accordance with the standards of the legal data protection regulations.

Data is collected, processed and used with technologyes of the provider web trends for marketing and optimisation purposes and also for sending news and information you may be interested in by any electronic services, such as email or SMS.

Our website user’s database is registered at the Spanish Agency of Data Protection. You have the rights of access, rectification, deletion and opposition, regulated in articles 14 to 16 of the LOPD.

For this, please write to:

KATOIKOS (Data Protection) Calle Campomanes 10, 28013, Madrid (SPAIN)

Or send an email to info@katoikos.eu. Your ID will be requested for these issues.

3.    Cookies Policy

This site, like many others, uses small files called cookies to help us customise your experience. Find out more about cookies and how you can control them.

This page contains information on what ‘cookies’ are, the cookies used by the Kaotikos’ website and how to switch cookies off in your browser.

If it does not provide the information you were looking for, or you have any further questions about the use of cookies on the Katoikos’s website, please email info@katoikos.eu.

What are ‘cookies’?

‘Cookies’ are small text files that are stored by the browser (for example, Internet Explorer or Safari) on your computer or mobile phone. They allow websites to store things like user preferences. You can think of cookies as providing a ‘memory’ for the website, so that it can recognise you when you come back and respond appropriately.

How does the Katoikos’s website use cookies?

A visit to a page on the Kaotikos’s website may generate the following type of cookies: Anonymous analytics cookies.

This website uses Google Analytics, a web analytics service provided by Google, Inc., a Delaware company whose main office is at 1600 Amphitheatre Parkway, Mountain View (California), CA 94043, USA (“Google”).

Google Analytics uses “cookies”, which are text files placed on your computer, to help the website analyze how users use the site. The information generated by the cookie about your use of the website (including your IP address) will be transmitted to and stored by Google on servers in the United States. Google will use this information on our behalf in order to track your use of the website, compiling reports on website activity and providing other services relating to website activity and internet usage. Google may also transfer this information to third parties where required to do so by law, or where such third parties process the information on Google’s behalf. Google will not associate your IP address with any other data held by Google.

Anonymous analytics cookies

Cookier Name Origin Aim End
__utma Google Analysis 2 years since set –up or update
__utmb Google Analysis 30 minutes since set –up or update
__utmc Google Analysis When browser sesión ends
_utmt Google Analysis 10 minutes since set –up or update
__utmz Google Analysis 6 months since set –up or update

How do I turn cookies off?

It is usually possible to stop your browser accepting cookies, or to stop it accepting cookies from a particular website. All modern browsers allow you to change your cookie settings. You can usually find these settings in the ‘options’ or ‘preferences’ menu of your browser. To understand these settings, the following links may be helpful, or you can use the ‘Help’ option in your browser for more details.

Cookie settings in Internet Explorer
Cookie settings in Firefox
Cookie settings in Chrome
Cookie settings in Safari web and iOS.

 

© 2019 Katoikos, all rights are reserved. Developed by eMutation | New Media

Become a
Being up to date with Europe only takes a few seconds.
Your information will never shared with a third party.
logo
subscriber!
Get our periodical newsletter sent to your inbox!
I have read and agreed the Privacy Policy (required)
Become a
Being up to date with Europe only takes a few seconds.
logo
subscriber!
Get our periodical newsletter sent to your inbox!
Your information will never shared with a third party.
I have read and agreed the Privacy Policy (required)