Harnessing skills for more inclusive growth

by Jan Strasky, Luxembourg Desk, OECD Economics Department. Strong economic performance, comfortable fiscal situation and well-run institutions make life good for most residents of Luxembourg. Average earnings are the highest in the OECD, while labour market insecurity and income inequality are low. Yet, the development of the digital economy is constantly expanding the domain of … More Harnessing skills for more inclusive growth

Global Economic Outlook: Better, but not good enough

By Catherine L. Mann, OECD Chief Economist and Head of Economics Department Global growth is projected to rise modestly from 3% in 2016 to just over 3½ per cent by 2018 in our latest Economic Outlook. The mood in the global economy has brightened during the past year, with confidence indicators and industrial production increasing, and … More Global Economic Outlook: Better, but not good enough

Does everybody enjoy Pura Vida? Decomposing income inequality in Costa Rica

By Mabel Gabriel and Alberto Gonzalez Pandiella, OECD Economics Department Despite strong economic growth, Costa Rica’s income inequality has increased in the past decade, in stark contrast with other Latin American countries (OECD, 2016 and González Pandiella and Gabriel, 2017). What explains this? A decomposition of income inequality by income sources reveals, surprisingly, that public … More Does everybody enjoy Pura Vida? Decomposing income inequality in Costa Rica

Structural Inequality – The Case of Sweden

by Jon Pareliussen, Sweden Desk, OECD Economics Department Income equality is perceived by many as steadily embedded in Swedish society, as solid as a Volvo’s tyres firmly clinging to a narrow country road on a Småland’s bright midsummer night. However, the Gini coefficient has increased more in Sweden than in any other OECD country since the 1990s. But … More Structural Inequality – The Case of Sweden

An immediate Chinese challenge: further addressing vast income inequality

by Ben Westmore, China Desk, OECD Economics Department The goal of the Chinese government to achieve a “moderately prosperous society in all respects” by 2020 is centred around improving social welfare throughout the population. One of the essential ingredients to doing this is a further reduction in economic inequality. As underlined in the OECD 2017 … More An immediate Chinese challenge: further addressing vast income inequality

Conquering utopia anew – Income inequality in Sweden

by Jon Pareliussen, Swedish Desk, Country Studies Branch, OECD Economics Department “Equality is a utopia (…) that must be constantly redefined and constantly conquered anew.” -Olof Palme, 30 July 1965. Equality, a long-standing hallmark of Swedish society, carries multiple benefits in terms of economic performance, trust, opportunity and well-being. Income inequality is relatively low in … More Conquering utopia anew – Income inequality in Sweden

Inequality in Denmark through the looking glass

By Mikkel Hermansen, Structural Surveillance Division, OECD Economics Department Although Denmark is one of the least unequal countries in the world, it has like many other OECD countries experienced a rise in income inequality. But by exactly how much has the Gini coefficient risen over the last decades? There is significant disagreement between various official … More Inequality in Denmark through the looking glass

Does growth lead to inequality? It depends.

By Orsetta Causa, Mikkel Hermansen and Nicolas Ruiz, Structural Surveillance Division, OECD Economics Department Widespread increases in inequality over the past three decades have raised the question of whether growth in itself is a driver of income inequality. Considering that correlation often tells little about causation, this question is less trivial than may appear at … More Does growth lead to inequality? It depends.

Structural reforms can be inclusive; it all depends on the details

By Orsetta Causa,  Mikkel Hermansen and Nicolas Ruiz, Structural Surveillance Division, OECD Economics Department Structural reforms are regularly assessed based on their ability to boost GDP per capita. This emphasis relies on the assumption that higher GDP per capita is systematically associated with rising living standards for the vast majority of citizens. This view is … More Structural reforms can be inclusive; it all depends on the details

Does decentralisation foster regional GDP convergence?

by Hansjörg Blöchliger, Senior Economist, Policy Studies Branch, Economics Department The growth pattern of OECD countries and their sub-national entities is puzzling. Between-country differences in GDP per capita are declining, yet the differences across jurisdictions within those countries tend to rise. Put in other words, countries’ GDP converges, while the output of their sub-national jurisdictions … More Does decentralisation foster regional GDP convergence?