Income inequality growing faster in UK than any other rich country, says OECD

[Turborama]

Source: The Guardian

Top 10% have incomes 12 times greater than bottom 10%, up from eight times greater in 1985, thinktank's study reveals

Randeep Ramesh, social affairs editor | Monday December 5 2011 10.39 GMT

Income inequality among working-age people has risen faster in Britain than in any other rich nation since the mid-1970s owing to the rise of a financial services elite who through education and marriage have concentrated wealth into the hands of a tiny minority, according to a new report by the OECD.

Economists from the thinktank, which is funded by developed world taxpayers, say the annual average income in the UK of the top 10% in 2008 was just under £55,000, about 12 times higher than that of the bottom 10%, who had an average income of £4,700.

This is up from a ratio of eight to one in 1985 and significantly higher than the average income gap in developed nations of nine to one.

However, the report makes clear that even in countries viewed as "fairer" – such as Germany, Denmark and Sweden – this pay gap between rich and poor is expanding: from five to one in the 1980s to six to one today. In the rising powers of Brazil, Russia, India and China the ratio is an alarming 50 to one.

Read more: http://www.guardian.co.uk/society/2011/dec/05/income-inequality-growing-faster-uk

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And, of course, the growth of the income inequality gap in the UK will only continue to speed up now the Tories are at the helm relishing imposing their draconian austerity frenzy on the population.

The OECD report also warns about the stratospheric rise of the top 1% in rich societies plus the falling share of income going to poorer people.

More details about the report at the link, and here...

http://www.guardian.co.uk/news/datablog/2011/dec/05/oecd-ineqaulity-report-uk-us">OECD inequality report: how do different countries compare?

[xchrom]

1. Recommend

[LeftishBrit]

2. Not surprised, sadly.

[Bosonic]

3. Another metric (for 2009)

http://en.wikipedia.org/wiki/Gini_coefficient">Gini-coefficient of national income distribution (a statistical measure of Income inequality). The higher the number, the greater the inequality.

[Turborama]

4. The report based its measurements on the Gini coefficient...

From the second link in the OP (which also has a couple of interactive Gini graphs worth checking out):

The report, which examined earnings in each of the OECD's 34 member countries and took more than two years to complie, based its measurements on the Gini coefficient, where countries are ranked between a figure of zero where everyone earns the same to 1 - where the richest person has all the income.

Thanks for the interesting map. :hi:

[Bosonic]

5. I must have skipped over the 2nd link

The first didn't reference Gini. Oh well, the map gives a static geographical distribution, but doesn't highlight trends.

[dipsydoodle]

6. I was earning the figure on top of Cleese head

selling photocopiers in 1987 and I'd hardly refer to myself as top 10%. It was a reflection of effort and nothing else.