OECD Report: Gap between Rich, Poor Growing

Society | October 21, 2008, Tuesday // 00:00
OECD Report: Gap between Rich, Poor Growing: OECD Report: Gap between Rich, Poor Growing The gap between rich and poor in most wealthy nations has widened, a study shows.

The gap between rich and poor in most wealthy nations has widened, according to a study, released Tuesday by the Organisation for Economic Co-operation and Development (OECD).

Over the past 20 years the cumulative rise in inequality across the 24 countries members of OECD was 7%, the report reads.

Denmark had the lowest inequality ratings, just in front of Sweden, while Mexico had the worst ratings, followed by Turkey.

The income of the richest 10% of people is, on average across OECD countries, nearly nine times that of the poorest 10%. But the size of income differentials varies. In Mexico, the richest have incomes of more than 25 times those of the poorest and, in Turkey, the ratio is 17 to one, the study reads.

The income gap between rich and poor is also well above the OECD average in Portugal, Poland and the United States.

Government plays a big role in determining incomes and living standards through the taxes it levies and the benefits it pays out. On average across OECD countries, cash transfers and income taxes reduce inequality by one third. Poverty is around 60% lower than it would be without taxes and benefits.

Even among the working-age population, government redistribution reduces poverty by about 50%, says the report.

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OECD REPORT READ HERE

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