Economic inequality to get worse: OECD

July 03, 2014 - 1:09:18 am

PARIS: The economic inequality seen in recent years will only get worse over the coming decades as highly skilled workers reap bigger gains from technological advances, the OECD said yesterday.

Governments need to invest more in education and build more progressive tax systems, the Paris-based Organisation for  Economic Development and Cooperation said in the latest of a series of reports on long-term economic trends. The debate over inequality has grown more heated since the success of “Capital in the Twenty-First Century,” a best-selling book by French economist Thomas Piketty. His work shows the gap in wealth between the rich and the rest of the populace is returning to levels last seen before World War One.

Wages of the top earners in the OECD grew an average 0.6 percent a year faster than the wages of those at the bottom of the income ladder over the two decades leading up to the financial crisis, the 34-nation group said.

If nothing is done, inequality will keep growing at that rate over the coming 50 years.Reuters