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Wage inequality 'getting worse' in leading economies | Wage inequality 'getting worse' in leading economies |
(30 days later) | |
By Adam Fleming BBC News Political Correspondent | By Adam Fleming BBC News Political Correspondent |
The divide between the wages of the rich and the poor is growing in nearly all of the world's leading economies, according to think tank the OECD. | The divide between the wages of the rich and the poor is growing in nearly all of the world's leading economies, according to think tank the OECD. |
Researchers examined 22 countries and found that inequality grew in 17 of them between the 1980s and the financial crisis of 2008. | Researchers examined 22 countries and found that inequality grew in 17 of them between the 1980s and the financial crisis of 2008. |
Chile, Mexico, Turkey and the United States were the most unequal nations. | Chile, Mexico, Turkey and the United States were the most unequal nations. |
Inequality rose fastest in the the UK - it peaked in 2000, then fell, but is now rising again. | Inequality rose fastest in the the UK - it peaked in 2000, then fell, but is now rising again. |
Even traditionally egalitarian countries such as Germany, Denmark and Sweden have experienced a growing wealth gap in recent decades. | Even traditionally egalitarian countries such as Germany, Denmark and Sweden have experienced a growing wealth gap in recent decades. |
The OECD found that globally, the richest 10% of the population earns nine times more than the poorest 10%. | The OECD found that globally, the richest 10% of the population earns nine times more than the poorest 10%. |
'No trickle down' | 'No trickle down' |
In the UK, the richest 1% has seen their incomes double since the 1970s. | In the UK, the richest 1% has seen their incomes double since the 1970s. |
The average annual income for the richest 10% of working age British people in 2008 was £55,000 - which is 12 times higher than the average for the bottom 10%. | |
The report says that the ratio of the richest 10% of the overall population to the poorest 10% in the UK is 10 to one - slightly higher than the OECD average. | |
Launching the report in Paris, OECD secretary-general Angel Gurria said: "This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that great inequality fosters social mobility. | Launching the report in Paris, OECD secretary-general Angel Gurria said: "This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that great inequality fosters social mobility. |
"Without a comprehensive strategy for inclusive growth, inequality will continue to rise." | "Without a comprehensive strategy for inclusive growth, inequality will continue to rise." |
The OECD say that changes in the labour market over the last 30 years are to blame. | The OECD say that changes in the labour market over the last 30 years are to blame. |
They claim that technology has benefited the highest paid while poorer workers have been forced to take jobs that are temporary, part-time or badly paid. Self-employed workers also tend to earn less. | They claim that technology has benefited the highest paid while poorer workers have been forced to take jobs that are temporary, part-time or badly paid. Self-employed workers also tend to earn less. |
Similar trends were observed in periods of growth and during recessions. | Similar trends were observed in periods of growth and during recessions. |
The organisation recommends that governments around the world invest to create better quality jobs and to improve the skills of workers. | The organisation recommends that governments around the world invest to create better quality jobs and to improve the skills of workers. |
Mr Gurria said: "Our report clearly indicates that upskilling of the workforce is by far the most powerful instrument to counter rising inequality." | Mr Gurria said: "Our report clearly indicates that upskilling of the workforce is by far the most powerful instrument to counter rising inequality." |
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