OECD Centre for Opportunity and Equality

Transcription

1 OECD Centre for Opportunity and Equality Evidence-based, policy-oriented research on inequalities Four policy avenues to reduce income inequality in OECD countries Brussels, 10 th October 2016, DG RTD Céline Thévenot OECD, Directorate for Employment, Labour and Social Affairs

2 Large country differences in inequality 2 Source: OECD Income Distribution Database ( Note: the Gini coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). Income refers to cash disposable income adjusted for household size. Data refer to 2013 or latest year available.

3 Rather than continuous long-term trends, episodes of inequality increases Long-term trends in inequality of disposable income (Gini coefficient) 3 Source: OECD (2015), In It Together, en.htm OECD Income Distribution Database, Note: Income refers to disposable income adjusted for household size.

4 No light at the end of the tunnel Economic recovery has not reduced inequality Average annual growth of disposable income, OECD-34 1,0% ,5% 0,0% -0,5% -1,0% -1,5% -2,0% -2,5% Bottom 10% Median income Top 10% 4

5 4 policy avenues to tackle high inequality Promote employment and good-quality jobs Foster women s participation in economic life Strengthen quality education and skills development Improve the design of tax and benefit systems for a more efficient redistribution 5

6 Non-standard work contributed to job polarisation Percentage change in employment shares by task category, Mid 1990s - latest year Standard Work Non-standard Work -25 Non-routine Routine Abstract 6 Source: OECD (2015), In It Together, en.htm Note: Abstract occupations (ISCO88: 12-34); Routine (ISCO88: 41-42, 52, 71-74, and 93); Non-routine manual (ISCO88: and 91). The overall sample restricted to workers aged 15-64, excluding employers as well as students working part-time.

7 More women in the workforce lowers inequality Inequality would have been higher if women s employment had remained the same as 20 years ago Impact of changes in households employment patterns on Gini coefficient (mid-1980s-mid2000s) 0,050 Change in households with 0,040 female in skilled job 0,030 0,020 Change in Gini Combined wage effects 0,010 0,000-0,010-0,020-0,030-0,040-0,050-0,008-0,014 Change in households with FT, FY female worker Change in households with female worker 7 Source: Luxembourg Income Study (LIS) data

8 Years of schooling OECD/COPE Inequality hinders lowers social mobility Average years of schooling by parental educational background (PEB) and inequality 14 Low PEB Medium PEB High PEB Source: OECD (2015), In It Together Inequality (Gini coefficient) 8 Note: Low PEB: neither parent has attained upper secondary education; Medium PEB: at least one parent has attained secondary and postsecondary, non-tertiary education; High PEB: at least one parent has attained tertiary education. The bars indicate 95% confidence intervals.

9 Redistribution lowers inequality Inequality of market and disposable income, working-age population Combined impact of cash transfers and taxes Impact of cash transfers Gini at market income, before transfers and taxes 0,55 Impact of taxes Gini at disposable income, after transfers and taxes ( ) 0,50 0,45 0,40 0,35 0,30 0,25 0,20 9

10 Redistribution has weakened recently Inequality before and after redistribution though transfers and taxes, respectively, 2007=100, working-age population, OECD average Market income inequality (before transfers and taxes) 102 Gross income inequality (after transfers and before taxes) Disposable income inequality (after transfers and taxes)

11 Designing policy packages to tackle high inequality and promote social cohesion Promote employment and good-quality jobs Foster women s participation in economic life Strengthen quality education and skills development Improve the design of tax and benefit systems for a more efficient redistribution 11

12 What s next? Middle class How to prevent the middle class from sliding? Intergenerational mobility Education, health, occupation, relative poverty, wealth. Intragenerationnal income mobility Does the passage of time smooth income inequality? 12

13 Thank you for your attention! Includes: "COMPARE YOUR INCOME" WEB 13