|Title||Trends in Income Inequality and its Impact on Economic Growth|
|Author Name||Federico Cingano|
In most OECD countries, the gap between rich and poor is at its highest level since 30 years. Today, the richest 10 percent of the population in the OECD area earn 9.5 times the income of the poorest 10 percent; in the 1980's 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 relative (and in some countries, absolute) income poverty on the radar of policy concerns. This paper explores whether such developments may have an impact on economic performance.
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