Introduction

Income inequality is rising. A quarter of a century ago, the average disposable income of the richest 10% in OECD countries was around seven times higher than that of the poorest 10%; today, it's around 9½ times higher. Why does this matter? Many fear this widening gap is hurting individuals, societies and even economies.

Key Terms in the Inequality Debate

This book explores income inequality across five main headings. It starts by explaining some key terms in the inequality debate.

Recent Trends and Country Variations

It then examines recent trends and explains why income inequality varies between countries.

Growth of Income Gaps and the Rise of the 1%

Next it looks at why income gaps are growing and, in particular, at the rise of the 1%.

Consequences of Widening Inequality

It then looks at the consequences, including research that suggests widening inequality could hurt economic growth.

Policies for Addressing Inequality

Finally, it examines policies for addressing inequality and making economies more inclusive.