Trends in Income Inequality and its Impact on Economic Growth

  title={Trends in Income Inequality and its Impact on Economic Growth},
  author={Federico Cingano},
  journal={International Organisations Research Journal},
  • F. Cingano
  • Published 9 December 2014
  • Economics
  • International Organisations Research Journal
In most OECD countries, the gap between rich and poor is at its highest level since 30 years. Today, the richest 10 per cent of the population in the OECD area earn 9.5 times the income of the poorest 10 per cent; in the 1980s this ratio stood at 7:1 and has been rising continuously ever since. However, the rise in overall income inequality is not (only) about surging top income shares: often, incomes at the bottom grew much slower during the prosperous years and fell during downturns, putting… 

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