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Divided We Stand: Why Inequality Keeps Rising (Complete Edition ‐ ISBN 9789264119536)

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In the three decades to the recent economic downturn, wage gaps widened and household income inequality increased in a large majority of OECD countries. This occurred even when countries were going through a period of sustained economic and employment growth. This report analyses the major underlying forces behind these developments. It examines to which extent economic globalisation, skill‐biased technological progress and institutional and regulatory reforms have had an impact on the distribution of earnings. The report further provides evidence of how changes in family formation and household structures have altered household earnings and income inequality. And it documents how tax and benefit systems have changed in the ways they redistribute household incomes. The report discusses which policies are most promising to counter increases in inequalities and how the policy mix can be adjusted when public budgets are under strain.


An Overview of Growing Income Inequalities in OECD Countries: Main Findings

Special Focus: Inequality in Emerging Economies (EEs)


Part I. How Globalisation, Technological Change and Policies Affect Wage and Earnings Inequalities

Chapter 1. Trends in Wage Inequality, Economic Globalisation and Labour Market Policies and Institutions

Chapter 2. The Impact of Economic Globalisation and Changes in Policies and Institutions on Rising Earnings Inequality

Chapter 3. Inequality Between the Employed and the Non‐employed


Part II. How Inequalities in Labour Earnings Lead to Inequalities in Household Disposable Income

Chapter 4. Hours Worked, Self‐Employment and Joblessness as Ingredients of Earnings Inequality

Chapter 5. Trends in Household Earnings Inequality: The Role of Changing Family Formation Practices

Chapter 6. From Household Earnings to Disposable Household Income Inequality


Part III. How the Roles of Tax and Transfer Systems Have Changed

Chapter 7. Changes in Redistribution in OECD Countries Over Two Decades

Chapter 8. The Distributive Impact of Publicly Provided Services

Chapter 9. Trends in Top Incomes and Their Tax Policy Implications
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Document Type: Review Article

Publication date: 2011-12-01

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