Attention Economy


Sunday, September 13, 2015

Inequality and Economic Performance in Advanced Economies

Interesting findings from a recent OECD study (as reported in WSJ):
““In recent decades, as much as 40% of the population at the lower end of the distribution has benefited little from economic growth in many countries,” the OECD said. “In some cases, low earners have even seen their incomes fall in real terms. When such a large group in the population gains so little from economic growth, the social fabric frays and trust in institutions is weakened. …
The OECD said the rise in inequality in the decades running up to the 2008 financial crisis has continued in its wake. While in the 1980s the top 10% of earners had incomes that were seven times as large as those of the bottom 10%, that ratio had risen to 9.6 across the OECD’s 34 members by 2013. In The U.S., that ratio rose from 15.1 in 2007 to 18.8 in 2014, a level of inequality only surpassed by Mexico.”