In Israel, the richest 10 percent earn 15 times more than the poorest 10%, a lot more the average gap between haves and have-nots among OECD nations, which is 9.6 times.
The average income of the top 10 percent in the US was 19 times higher than the bottom 10 percent in 2013. The US figure rose from just 11 times higher 30 years ago, the OECD says.
The report also says Israel is failing to increase sufficiently the participation of women in the workforce, a key driver for reducing inequality.
“There’s a [long] way to go in Israel to get the female employment rates higher,” says Mark Pearson, the author of the report.
Policies to improve women’s treatment in the labor market and measures to reverse the growing share of low-quality, “dead-end” jobs are key to reducing income inequality and unlocking more economic growth, the OECD says.
“Put simply: rising inequality is bad for long-term growth,” the OECD concludes in the report, which is titled “In It Together, Why Less Inequality Benefits All.”
Reposted from RTT News
Widening Gap Between Rich And Poor
The gap between the rich and the poor keeps widening, according to the Organisation for Economic Cooperation and Development (OECD).
A report published by OECD Thursday says growth, if any, has disproportionately 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 percent from the rest of the society.
Lower income people have been prevented from realizing their human capital potential, which is bad for the economy as a whole, says the book titled “In It Together: Why Less Inequality Benefits All”.
It highlights the key areas where inequalities are created and where new policies are required, including the consequences of current consolidation policies; structural labor 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.
In most countries, the gap between the rich and the poor is at its highest level since 30 years. In 34 OECD member states, the richest 10 percent of the population earn 9.6 times the income of the poorest 10 percent. In the 1980s, this ratio stood at 7:1, rising to 8:1 in the 1990s and 9:1 in the 2000s.
In several emerging economies, particularly in Latin America, income inequality has narrowed, but income gaps remain generally higher than in OECD countries.Most of the European Union as well as developed countries such as the United States, Canada, Australia and Japan are members of OECD.
During the financial crisis, income inequality continued to increase, mainly due to the fall in employment and because tax and benefit systems became less effective at redistributing income. However, at the lower end of the income distribution, real household incomes fell substantially in countries hit hardest by the crisis.
by RTT Staff Writer
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