OECD countries see a widening inequality gap

A recent OECD Report states that in developed economies their richest citizens get quite a lot richer in the last few decades, leading to a widening income gap. The New York Times said that the average income of the richest 10 percent of the population is about nine times that of the poorest 10 percent, with much bigger multiples in Israel, Turkey, the United States, Chile and Mexico. In these last two countries, the income ratio is 27 to 1. Notice that New Zealand has one of the highest increases in income inequalities.

What accounts for this rise:
* the highest-paid workers have acquired significant pay increases relative to the lower income groups.
* more developed countries countries have been sending a significant amount of their less-skilled jobs offshore, and this has displaced many lower-paid workers in developed countries.
* there have also been cuts in work hours (sometimes voluntary, sometimes not), disproportionately affecting lower-paid employees
* high skilled workers have benefitted more than low paid workers from technological change. Regulatory changes, like loosening protections for temporary (and less-skilled) workers and lower unemployment benefits, may have also had an effect.

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