Less Income Inequality and More Growth – Are They Compatible? Part 1. Mapping Income Inequality Across the OECD

Abstract

Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format ECO/WKP(2012)1 Unclassified English-Or. English ECO/WKP(2012)1 2 ABSTRACT/RÉSUME Less income inequality and more growth-Are they compatible? Part 1. Mapping income inequality across the OECD Countries differ widely with respect to the level of labour income inequality among individuals of working age. Labour income inequality is shaped by differences in wage rates, hours worked and inactivity rates. Individual labour income inequality is the main driver of household market income inequality, with family formation as well as self-employment and capital income dispersion playing a smaller role. Household disposable income dispersion is lower in all OECD countries than household market income inequality, due to the redistributive effect of tax and transfer systems, but redistribution differs widely across countries. This paper maps income inequality for all OECD countries across various inequality dimensions and summarises them in inequality outcome diamonds. It also provides a cluster analysis that identifies groups of countries that share similar inequality patterns.

Making growth more inclusive in Costa Rica

“…Consistently with evidence from OECD countries (Hoeller et al 2012), earned labour income is the main determinant of income inequality. Over the 2010-2014 period, public sector salaries made the largest contribution to inequality (Table 1 and Gabriel and González Pandiella, forthcoming), particularly the salaries of qualified workers in public agencies outside central government.…”

Structural policies to boost productivity and inclusion in Costa Rica

“…Despite this, there is significant labour market segmentation, which is largely driven by cost differences between formal and informal employment. This high and increasing level of informality is hindering worker mobility, productivity-enhancing resource allocation and workers' access to quality jobs (López-Calva and Lustig, 2010;Busso et al, 2012;Hoeller et al, 2012;Hsieh, 2015;OECD, 2016a;OECD and IDB, 2016). For example, improving resource allocation could increase GDP in Mexico by 125%, with informal firms accounting for 35 percentage points of this gain (IMF, 2017; Box 1).…”

Políticas estructurales para impulsar la productividad y la incluión en Costa Rica

“…A pesar de esto, existe una importante segmentación del mercado laboral, que en gran parte se debe a las diferencias de costos entre el empleo formal y el informal. Este │ 17 nivel de informalidad que ya es alto y va en crecimiento, obstaculiza la movilidad de los trabajadores, la asignación de recursos que contribuya a aumentar la productividad, y el acceso de los trabajadores a trabajos de calidad (López-Calva y Lustig, 2010;Busso et al, 2012;Hoeller et al, 2012;Hsieh, 2015OCDE, 2016a, OCDE e BID, 2016. Por ejemplo, mejorar la asignación de recursos podría contribuir a aumentar el PIB en México en un 125%, y las empresas informales representarían 35 puntos porcentuales de este beneficio (FMI, 2017, recuadro 1).…”