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

45 Pages Posted: 4 Mar 2012

See all articles by Peter Hoeller

Peter Hoeller

Organization for Economic Co-Operation and Development (OECD)

Isabelle Joumard

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Debra Bloch

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Mauro Pisu

OECD; Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium

Date Written: January 10, 2012

Abstract

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 summarizes them in inequality outcome diamonds. It also provides a cluster analysis that identifies groups of countries that share similar inequality patterns.

Keywords: Inequality, welfare, poverty, cluster analysis

JEL Classification: C38, D6, D30, D63, E24, I3, I24

Suggested Citation

Hoeller, Peter and Joumard, Isabelle and Bloch, Debra and Pisu, Mauro, Less Income Inequality and More Growth – Are They Compatible?: Part 1: Mapping Income Inequality Across the OECD (January 10, 2012). OECD Working Paper No. 924. Available at SSRN: https://ssrn.com/abstract=2014780 or http://dx.doi.org/10.2139/ssrn.2014780

Peter Hoeller (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Isabelle Joumard

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Debra Bloch

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75116
France

Mauro Pisu

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Leverhulme Centre for Research on Globalisation and Economic Policy ( email )

University of Nottingham
School of Economics
Nottingham, NG7 2RD
United Kingdom

National Bank of Belgium ( email )

Research Department
Boulevard de Berlaimont 14
Brussels, 1000
Belgium

Register to save articles to
your library

Register

Paper statistics

Downloads
497
Abstract Views
1,747
rank
55,864
PlumX Metrics