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

The world economy desperately needs more productive investment: to create jobs, to increase productivity and to meet critical global goals like combating climate change. But instead of more productive investment, we are getting rising stock markets. Sadly too many policymakers and journalists don’t know the difference.

8 March 2018, Paris - On the occasion of International Woman's Day, senior decision-makers from the public and corporate worlds, experts, academics and stakeholders considered different policy approaches and implementation tools on how to close gender gaps in the private sector.

The workshop "Impact of Inequality on the Future Elderly – Policy Tools and Actions" will take place at the OECD Headquarters in Paris on April 5-6, 2018. Access the agenda, background documents, and register to attend.

This country note provides information on latest trends in income inequalities as well as key findings from the 2011 OECD report "Divided We Stand: Why Inequality Keeps Rising".

This country note provides information on latest trends in income inequalities as well as key findings from the 2015 OECD report "In it Together: Why less inequality benefits all".

Selected findings for Australia from the report "The Pursuit of Gender Equality: An Uphill Battle"

This country note provides information on latest trends in income inequalities as well as key findings from the 2011 OECD report "Divided We Stand: Why Inequality Keeps Rising".

This country note provides information on latest trends in income inequalities as well as key findings from the 2015 OECD report "In it Together: Why less inequality benefits all".

Selected findings for Japan from the report "The Pursuit of Gender Equality: An Uphill Battle"

The world economy desperately needs more productive investment: to create jobs, to increase productivity and to meet critical global goals like combating climate change. But instead of more productive investment, we are getting rising stock markets. Sadly too many policymakers and journalists don’t know the difference.

Gender inequality is one of the most primitive and oldest forms of inequality. Sadly, it is still very much a reality in most parts of the world. In many countries women do not have equal access to education, healthcare, safety, work or political decision-making.

Can both less income inequality and more growth be achieved? A recent OECD study sheds new light on the link between policies that boost growth and the distribution of income.

Britain must continue to pursue pro-growth, as well as inequality-reducing structural reforms in order to recover from the nation’s deepest recession in nearly a century, according to a new OECD report.

Employment has risen by more and unemployment has risen less than expected, given the path of output. Nevertheless, long-term and youth unemployment and involuntary part-time work are high. A polarised labour market risks worsening income inequality, which is high by OECD standards, despite a recent and likely temporary decline.

Income inequality in Colombia has declined since the early 2000s but remains very high by international standards. Income dispersion largely originates from the labour market, which is characterised by a still high unemployment rate, a pervasive informal sector and a wide wage dispersion reflecting a large education premium for those with higher education.

Income inequality in Colombia has declined since the early 2000s but remains very high by international standards. While most of the inequality originates from the labour market, wealth – and thus capital income – is also highly concentrated and the tax and transfer system has little redistributive impact.

Austerity programmes to restore order to public finances can add to the woes of already struggling economies, leading to more job losses and social hardship. But there are ways for governments to put their fiscal houses in order, while supporting growth and reducing income inequality at the same time.

Income inequality and relative poverty in the United States are among the highest in the OECD and have substantially increased over the past decades. These developments have been associated with a number of other worrying statistics, including low intergenerational social mobility and weak real income growth for many households.

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.

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.

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.

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.

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

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

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

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.

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.

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

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.

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

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

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

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

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

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.

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

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

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

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.

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?

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.

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.

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.

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.

Can both less income inequality and more growth be achieved? A recent OECD study sheds new light on the link between policies that boost growth and the distribution of income.

Austerity programmes to restore order to public finances can add to the woes of already struggling economies, leading to more job losses and social hardship. But there are ways for governments to put their fiscal houses in order, while supporting growth and reducing income inequality at the same time.

More than five years into an economic crisis which has taken on several names–from subprime crisis and financial crisis to great recession–no term accurately depicts the fundamental result of this economic turbulence: people facing hardship.

Latin American and Caribbean countries need to do more to improve budget management, tax collection and public sector pay equality if they are to catch up with advanced economies in terms of government performance, according to a joint report by the OECD and the Inter-American Development Bank (IDB).

Portugal has one of the most unequal income distributions in Europe and poverty levels are high. The economic crisis has halted a long-term gradual decline in both inequality and poverty and the number of poor households is rising, with children and youths being particularly affected. Unemployment is one of the principal reasons why household incomes declined.