Income inequalities: the OECD sounds the alarm
If the economic crisis plus households with low incomes, the recovery more benefits from those who have the highest incomes. This is a recent study conducted by the Organization for Economic Co-operation and Development (OECD). The main cause is clearly expressed by this document: the lack of equitable sharing of the fruits of the recovery. And this, to the point that "income inequality has remained at historical levels" over the period 2007-2014.
The Gini coefficient
In order to measure these inequalities, its experts have resulted in the "Gini coefficient". This is "a synthetic indicator of inequalities of wages (income, living standards ...). It varies between 0 and 1. It is equal to 0 in a situation of perfect equality where all wages, income, living standards ... would be equal. At the other extreme, it is equal to 1 in a situation as unequal possible, where all wages (income, living standards ...) except one would be zero. Between 0 and 1, inequality is all the stronger as the Gini index is high ".
This coefficient of Gini amounted to 0.318 in 2014 against 0.317 in 2007 in developed countries. However, this average veils inequalities in each country. What highlights a very disturbing point: "If the recovery can in some cases reduce inequalities through the decline in unemployment, it can also lead to an increase in inequalities when the recovery benefits mainly on capital income" , read in the study.
Hiring contracts accentuating inequality
Always according to the same document, "the crisis has impacted not only the number of jobs but also their quality". In concrete terms, inequalities have increased, in some countries, because of companies that use short-term contracts and part-time, as is the case in Germany. Result, the Gini index increased from 0.285 to 0.292 between 2007 and 2014. What is a significant increase. Same trend for poverty at our German neighbors. Its rate increased from 9% to 9.1% between 2007 and 2014 after falling in 2012 at 8.4%. It remains at a high level (13.2%) for young people aged 18 to 25 in 2014.
And if in Germany, we use the short-term contract or part-time, among the Britishs, it is the Zero Time contract that guarantees no salary that contributed to the impoverishment of a bangs of the labor force. In this respect, the experts of the OECD report that "in some cases, the low growth of wages sometimes prevented fully rebounding rewards. This is for example the case in the United Kingdom where, despite a strong job creation (including among the most modest households), the decline of sal
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