PHM-Exch> Divided We Stand: Why Inequality Keeps Rising OECD countries

[Claudio Schuftan]

From: Ruggiero, Mrs. Ana Lucia (WDC) <ruglucia at paho.org>
cross posted from: EQUIDAD at listserv.paho.org


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*Divided We Stand: Why Inequality Keeps Rising

*

*Organisation for Economic Co-operation and Development (OECD) 2012

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Website: http://bit.ly/N2aE0n

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“…….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 tackle
inequality, according to this OECD report.

****

The report notes that the average income of the richest 10% is now about
nine times that of the poorest 10 % across the OECD. The income gap has
risen even in traditionally egalitarian countries, such as **Germany**, **
Denmark** and ****Sweden****, from 5 to 1 in the 1980s to 6 to 1 today. The
gap is 10 to 1 in **Italy**, **Japan**, **Korea** and the **United Kingdom**,
and higher still, at 14 to 1 in **Israel**, **Turkey** and the ****United
States****.

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In **Chile** and ****Mexico****, the incomes of the richest are still more
than 25 times those of the poorest, the highest in the OECD, but have
finally started dropping. Income inequality is much higher in some major
emerging economies outside the OECD area. At 50 to 1, ****Brazil****'s
income gap remains much higher than in many other countries, although it
has been falling significantly over the past decade.

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 “…….Globalisation and technological changes offer opportunities but also
raise challenges that can be tackled with effective and well-targeted
policies. Any policy strategy to reduce the growing divide between rich and
poor should rest on three main pillars: more intensive human capital
investment; inclusive employment promotion; and well-designed tax/transfer
redistribution policies…..”

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This report analyses the major underlying forces behind these developments:

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*Content: *

- An Overview of Growing Income Inequalities in OECD Countries ****

- Special Focus: Inequality in Emerging Economies ****

- Part I. How Globalisation, Technological Change and Policies Affect Wage
and Earnings Inequalities****

- Part II. How Inequalities in Labour Earnings Lead to Inequalities in
Household Disposable Income****

- Part III. How the Roles of Tax and Transfer Systems Have Changed

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