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Growth and inequality: A close relationship?

Inequality has risen in the OECD area. Could policies aimed solely at growth be responsible? Can inequality undermine economic growth? New evidence suggests there is a possibility.




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Trade specialisation and policies to foster competition and innovation in Denmark

Danish productivity has grown only weakly over the past two decades, both historically and in relation to other countries, despite sound policies and institutions. Denmark needs to continue its efforts to reap the benefits of globalisation, which would contribute to invigorating productivity growth.




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Global growth to slow as wage inequality rises over coming decades, says OECD

A slowdown in global economic growth and a continuing rise in income inequality are projected for the coming decades, according to a new OECD study which looks beyond the crisis at what the world could look like by 2060.




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Gross earning inequalities in OECD countries and major non-member economies: determinants and future scenarios

Income and earning inequality has been on the rise in most of the OECD and in many emerging economies since the 1980s. This paper estimates a model of earnings inequality across OECD countries that incorporates determinants of relative demand and supply of more and less-skilled labour.




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Reducing income inequality and poverty and promoting social mobility in Korea

To strengthen social cohesion, a top government priority, it is essential to address the labour market roots of inequality by breaking down dualism to reduce the share of non-regular workers and to boost the employment ratio toward the government’s 70% target.




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Italia: Le riforme assicurano nuove prospettive per rilanciare la crescita e l’occupazione – OCSE

Cambiare il quadro politico-istituzionale in Italia è fondamentale per garantire che le ambiziose riforme in corso rilancino la crescita e aumentino la qualità della vita, secondo un nuovo rapporto dell’OCSE.




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Boosting growth and reducing informality in Mexico

Mexico has embarked on a bold package of structural reforms that will help it to break away from three decades of slow growth and low productivity. Major structural measures have been legislated to improve competition, education, energy, the financial sector, labour, infrastructure and the tax system, among many, and implementation has started in earnest.




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Abenomics’ ‘third arrow’ key to revitalising Japan’s economy

The Japanese economy is on a path to stronger growth, but fundamental structural reforms are urgently needed to promote a more robust recovery, address high levels of government debt and reverse a trend toward declining living standards, according to the latest OECD Economic Survey of Japan.




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Addressing Growing Inequality through Inclusive Growth: Insights for the US and Beyond

In his speech delivered at the Brookings Institute, OECD Secretary-General Gurría explains that OECD’s numbers tell a clear-cut story of how our traditional economic growth agenda has neglected inclusiveness. Yet to begin to tackle this problem, we have to understand that inequality is not just about money. It touches every area of people’s lives.




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Assessing China's skills gap and inequalities in education

This paper aims at gauging the skills and knowledge gap of tertiary graduates of universities and vocational colleges across China. It also looks at the employment and wage prospects of graduates with different educational backgrounds.




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Gender equality and economic growth in India: a quantitative framework

This paper studies how public policies, including pro-women interventions, can raise female labour force participation and promote economic growth in India.




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Children paying a high price for growing inequality, OECD How’s Life? report finds

Children are paying a high price for today’s growing inequality, according to a new OECD report.




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Labour market reform for more and better quality jobs in Italy

A well-functioning labour market is indispensable to promote job creation, increase living standards, and develop a cohesive society. In Italy, the various deficiencies of the labour market have resulted in high unemployment, low labour force participation and job-skill mismatch.




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Towards more gender equality in Austria

Gender mainstreaming with the aim of more gender equality ranks high on the agenda of Austrian policy makers.




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Israel’s economy is sound but it urgently needs to address productivity, inequality and poverty

Israel’s economy has strong fundamentals, but the country needs to address productivity, inequality and poverty if it wants to improve well-being and reduce socio-economic divides, according to the OECD’s latest Economic Survey of Israel.




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Tackling poverty and inequality in Greece is crucial to recovery from crisis

Boosting economic growth and investment to create jobs, improve the stability of public finances and provide an effective social safety net are crucial to help Greece recover from the profound social costs of the economic crisis, says the OECD in its latest report.




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New ‘nexus’ approach needed to tackle productivity and inequality challenges, says OECD report

Declining productivity growth and rising inequality are two of the biggest obstacles to improved economic performance, according to a new OECD report.




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Scaling new heights: achievements and future challenges for productivity convergence in Lithuania

GDP per capita in Lithuania rose from one third to two thirds of the OECD average level between 1995 and 2014, despite internal and external crises. Productivity catch-up was critical to this process, although the level of labour productivity also remains around one-third below the OECD average.




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Tackling the three main challenges in Costa Rica: fiscal reform, reverting the slowdown in productivity and reducing inequality

Costa Rica’s economic, social and environmental achievements are impressive. It has succeeded in combining rising living standards, virtually universal health care, pension and primary education systems with sustainable use of natural resources.




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Scaling new heights: achievements and future challenges for productivity convergence in Lithuania

GDP per capita in Lithuania rose from one third to two thirds of the OECD average level between 1995 and 2014, despite internal and external crises. Productivity catch-up was critical to this process, although the level of labour productivity also remains around one-third below the OECD average.




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Achieving and sharing the benefits of globalisation

Yesterday’s OECD Interim Economic Outlook warns that trade growth is slowing, contributing to another slowing of global GDP growth in 2016 and with few signs of improvement for 2017.




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Does Fiscal Decentralisation Foster Regional Convergence?

Across the OECD, GDP per capita is converging. In contrast, regional disparities – or differences in GDP per capita across jurisdictions – are rising, mainly as a result of widening productivity differences. Fiscal decentralisation could help reduce them again. According to new OECD research, assigning more ownsource revenue to sub-national governments dampens regional GDP disparities and underpins regional convergence.




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Realising and expanding opportunities in the United States

Measures that enable the acquisition of new skills and reduce mismatches between the demand and supply of existing skills can boost US economic growth and make its benefits more inclusive.




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Labour mobility in the European Union: a need for more recognition of foreign qualifications

Labour market mobility in the European Union is increasing, but it remains too low to provide sufficient adjustment in the face of diverging labour market developments.




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Inequality in Denmark through the Looking Glass

This paper delivers a broad assessment of income inequality in Denmark.




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Inequality in Denmark through the Looking Glass

This paper delivers a broad assessment of income inequality in Denmark.




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The effect of the size and mix of public spending on growth and inequality

The effect of the size and mix of public spending on growth and inequality




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Does growth lead to inequality? It depends.

Widespread increases in inequality over the past three decades have raised the question of whether growth in itself is a driver of income inequality.




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Conquering utopia anew – Income inequality in Sweden

Equality, a long-standing hallmark of Swedish society, carries multiple benefits in terms of economic performance, trust, opportunity and well-being.




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Sweden is a champion of gender equality, but parity is not reached yet

Sweden ranks among the OECD’s frontrunners in terms of gender equality. Women have a high employment rate, outperform men in education and are well represented in government and parliament.




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Economic Survey of Australia 2017

Further structural reform is required to raise productivity growth through a better climate for business and stronger R&D outcomes.




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Deconstructing income inequality in Costa Rica: an income source decomposition approach

Despite an improvement in overall macroeconomic performance in Costa Rica, income inequality has risen and is currently at its maximum historical value.




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Towards a Better Globalisation: How Germany can respond to the critics

Citizens in many countries are expressing dissatisfaction with how they believe trade, technology and immigration are affecting their daily lives. While much of this discontent can be traced back to the global economic crisis, its root causes are more complex. What can be done at the Global, European and German level?




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Does everybody enjoy Pura Vida? Decomposing income inequality in Costa Rica

Despite strong economic growth, Costa Rica’s income inequality has increased in the past decade, in stark contrast with other Latin American countries.




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Reforms for more and better quality jobs in Spain

The Spanish economy is growing strongly, but there is a risk that many people are being left behind.




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Better but not good enough: New approaches are needed to make globalisation work for all, OECD says in latest Economic Outlook

The global economy is expected to pick up moderately but greater efforts are needed to ensure that the benefits from growth and globalisation are more widely shared, according to the OECD’s latest Economic Outlook.




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Creating good conditions for innovation-driven productivity gains in Australia

Innovation is key to boosting Australia’s productivity and inclusiveness.




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Boosting R&D outcomes in Australia

R&D activity can play a central role in raising productivity.




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Fighting gender inequality in Sweden

Sweden ranks among the best OECD countries in terms of gender equality.




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Austria: Embrace digitalisation to boost growth and inclusiveness

The Austrian economy is strengthening, supported by recent tax reform and a pick-up in international trade. With business and household confidence rising and the short-term outlook favourable, policymakers should enact deeper structural reforms that will improve both fiscal sustainability and social cohesion.




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Embracing digitalisation to boost Austria’s growth potential

Digitalisation will redesign production processes and alter relationships between work and leisure, capital and labour, the rich and the poor, the skilled and the unskilled. It creates opportunities to boost inclusive growth and well-being by raising productivity, enhancing private and public services, and democratising information.




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Aumentar as qualificaçŏes em Portugal

Não obstante o progresso significativo conseguido, melhorar as competências e as qualificações continua a ser um dos principais desafios que Portugal enfrenta para aumentar o crescimento, os níveis de vida e o bem-estar.




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

The peace agreement will boost economic growth, but to share it fairly Colombia must also achieve better educational outcomes and bring more people into the more productive formal economy.




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The effects of the tax mix on inequality and growth

Can reforms that shift the balance among different taxes in the revenue mix lastingly influence the overall prosperity of an economy and the distribution of income across households?




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Improving productivity and job quality of low-skilled workers in the United Kingdom

More than a quarter of adults in the United Kingdom have low basic skills, which has a negative impact on career prospects, job quality and productivity growth.




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Chile should use upturn to address low productivity and high inequality

A favourable growth outlook offers Chile an opportunity to address its low productivity levels compared to other advanced economies, improve access to quality jobs and take steps to reduce its persistently high inequality, according to a new OECD report.




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Mind the gaps: boosting productivity and reducing inequality in Chile

Chile has been one of the fastest-growing economies in the OECD in recent decades. Sound macroeconomic management, bold structural reforms, such as trade and investment liberalisation, and buoyant natural-resource sectors, supported fast convergence in living standards.However, progress has slowed: declining productivity gains are limiting prospects for rising incomes and better-quality jobs; and inequality remains stubbornly high.




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A Genie in a bottle? Globalisation, competition and inflation

Declining inflation in many countries over the past few decades at the same time as rising global competition has led to a debate on the importance of globalisation for domestic inflation. This paper explores the implications of global value chain (GVC) integration and market contestability for inflation using a range of industry-level and micro-data sources.




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

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.




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Will the inflation genie escape the bottle? New evidence on globalisation, competition and inflation

Markets and commentators are speculating that there may be a sustained pick-up in inflation in the United States, after years of subdued price pressures. Along with continued solid US jobs growth and low unemployment, there are tentative signs of higher wage growth and the fiscal stimulus will also boost short-term growth. Global growth is also getting stronger.