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Economic Growth from the Household Perspective: GDP and Income Distribution Developments Across OECD Countries

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  • Orsetta Causa
  • Sonia Araujo
  • Agnès Cavaciuti
  • Nicolas Ruiz
  • Zuzana Smidova

Abstract

This paper provides an assessment of how households’ income has fared compared with GDP. While the prime focus is on incomes around the median, attention is paid also to the bottom of the income distribution. Thus, one contribution of the paper is to deliver a fresh assessment of the evolution of inequality and poverty across OECD countries over the last fifteen years. The analysis relies on a rich array of indicators, producing new evidence of the various patterns of differences in income distributions across countries and over time. For example, it assesses the extent to which stability in overall income inequality masks compensating changes between the lower and upper halves of the income distribution. Also, it explores whether contracting inequalities coexist with increasing poverty. The paper adds to previous studies by introducing, measuring and analysing income polarisation in a cross-country comparative perspective. Distinguishing polarisation from inequality and comparing their evolution over time provides new policy-relevant perspectives on the nature of the changing income distribution. La croissance du point de vue des ménages : PIB et distribution des revenus dans les pays de l'OCDE Cet article analyse les évolutions des revenus des ménages en comparaison avec celles du produit intérieur brut (PIB). L’analyse se concentre sur les revenus proches de la médiane, mais une attention particulière est également portée aux bas revenus. Ainsi, une des contributions de ce rapport est de dégager un nouveau diagnostic de l’évolution des inégalités et de la pauvreté au cours des quinze dernières années dans les pays de l’OCDE. L’analyse repose sur un ensemble riche d’indicateurs, et produit une description fine de la nature des différences de distribution du revenu entre pays et au cours du temps. Par exemple, l’article montre qu’un niveau stable de l’inégalité dans son ensemble peut masquer des changements en sens inverse et qui se compensent entre la moitié haute et la moitié basse de la distribution. Aussi, l’article explore la possibilité que la réduction des inégalités puisse s’accompagner d’une hausse de la pauvreté. L’analyse étend les études précédentes en introduisant, mesurant et analysant la polarisation des revenus, et ce dans une perspective comparative entre pays. La distinction entre le concept de polarisation de celui d’inégalité et la comparaison de leur évolution au cours du temps portent un éclairage nouveau, y compris en matière de politique économique, quant à la nature des changements de distribution du revenu.

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File URL: http://dx.doi.org/10.1787/5jz5m89dh0nt-en
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 1111.

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Date of creation: 14 Apr 2014
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Handle: RePEc:oec:ecoaaa:1111-en

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Keywords: middle class; income distribution; poverty; inequality; median income; polarisation; distribution des revenus; pauvreté; classe moyenne; inégalités; polarisation; revenu médian;

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