OECD report cites rising income inequality
By Michael A. Fletcher, Published: December 5
Income inequality is increasing across much of the developed
world, a trend that will continue unless governments move aggressively
to arrest it, according to a report released Monday by the Organization for Economic Cooperation and Development.
The widening gap between rich and poor is being driven in part
by a growing disparity in wages, as skilled workers command a
disproportionate share of the bounty made possible by technological
progress, the report said.
In the past 30 years, the recession has caused
massive job losses, population growth has altered the size and makeup of
our cities, and the income gap between rich and poor has widened. Here,
we take a look at how people's perceptions of change in their area
match up with the way things really are.
In addition, a surge in foreign direct investment and a looser
regulatory regime that has reduced employee protections have led to a
wage premium for high-skill financial jobs and fewer rewards for workers
at the bottom, the report said.
The result is the highest level
of income inequality in more than three decades, according to the
Paris-based OECD, whose members include 34 developed countries and whose
mission is to promote policies for improving economic and social
well-being.
The report comes as rising dissatisfaction with
economic inequality has spilled over into street protests in dozens of
cities around the world.
“The social contract is starting to
unravel in many countries,â€