An empirical investigation on the drivers of income redistribution across OECD countries

By Orsetta Causa, OECD Economics department Income inequality has increased in most OECD countries over the past two decades. This has come about both because incomes before taxes and transfers have become more unequally distributed, and because the extent of redistribution through taxes and transfers has fallen (“Income redistribution through taxes and transfers across OECD … More An empirical investigation on the drivers of income redistribution across OECD countries

Lithuania: A fast-growing economy needs to boost inclusiveness

by Hansjörg Blöchliger and Vassiliki Koutsogeorgopoulou, Lithuania Desk, OECD Economics Department Lithuania is one of the fastest growing economies in the OECD. After a strong rebound in 2017, growth is set to average more than 3% over this year and the next led by buoyant investment. Falling unemployment and rapidly increasing wages support consumption, although … More Lithuania: A fast-growing economy needs to boost inclusiveness

A balancing act: Why inequality increased in the Nordics

Mr. Jon Pareliussen, Economist, Sweden/Finland desk, Economics Department The Nordics are rightly renowned for being inclusive societies with low inequality compared to other OECD countries. However, some of the largest inequality increases over the past few decades took place in Sweden, Finland and Denmark. A newly released article  building on previous OECD work discusses how market forces, … More A balancing act: Why inequality increased in the Nordics

A new perspective on inequality: The income distribution across advanced countries

By Mikkel Hermansen, Economist, OECD Economics Department What is the relevant perspective for evaluating people’s living standards in advanced countries? According to standard assessments of inequality it is fellow citizens within the country. In a recent paper (Hermansen, 2017), I argue that an interpersonal income distribution across advanced countries can provide a useful complement to … More A new perspective on inequality: The income distribution across advanced countries

How does ageing affect income redistribution?

By Mikkel Hermansen, Economist, OECD Economics Department In many advanced countries, the share of citiziens having reached post-retirement age is growing fast. Since elderly rely for a good part on a public pension scheme for income support, population ageing tends to result in more income redistribution, in particular in the form cash transfers. However, insofar … More How does ageing affect income redistribution?

Income redistribution through taxes and transfers across OECD countries: A focus on the bottom 40 per cent

By Orsetta Causa, Senior Economist, OECD Economics department Tax and transfer systems are fundamental pillars of an inclusive growth policy agenda that aims at sharing the benefits of growth more equally and securing decent living standards for those in most need.  A new OECD report by Causa and Hermansen (2017) (“Income redistribution through taxes and … More Income redistribution through taxes and transfers across OECD countries: A focus on the bottom 40 per cent

Reducing inequality to raise incomes and expand well-being for all Colombians

By Christine de La Maisonneuve, Economist on the Colombia desk, Economics Department Growth has become more inclusive in recent years. Living standards have improved and poverty has declined (Figure 1). However, the gap between rich and poor remains among the highest in Latin America. The peace agreement will boost economic growth, but to share it fairly … More Reducing inequality to raise incomes and expand well-being for all Colombians

Four Challenges of Inclusive Growth from the OECD’s chief economist

by Catherine L. Mann, Chief Economist and Head of the Economics Department, OECD The challenge of measuring inclusiveness. A standard metric for measuring inequality is the Gini coefficient, which measures income distribution within an economy. But there are many other measures, such as distribution of income deciles, distribution of wealth, distributions of these by regions … More Four Challenges of Inclusive Growth from the OECD’s chief economist

Estonia: Using fiscal space for a more inclusive growth

By Pierre Beynet, Head of Division, OECD Economics Department Estonian growth is picking up again strongly in 2017 and the level of activity has finally surpassed its pre-crisis level, almost 10 years after the outset of the financial crisis (Figure 1, panel A). However, poverty remains among the highest in the OECD (Figure 1, Panel B). To … More Estonia: Using fiscal space for a more inclusive growth

Continuing the reform process in France to improve job and income prospects

by Nicola Brandt and Pierre Guérin, France Desk, Country Studies Branch, OECD Economics Department Economic growth is strengthening in France, supported by consumption and investment, and the labour market is gradually recovering, as past reductions of comparatively high labour and business taxes are starting to take effect. However, GDP and employment growth are still lagging … More Continuing the reform process in France to improve job and income prospects