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Finance and Economics Vision

Volume 6 nos.1 April 2024 ISSN 2755-3272

Income Inequality between OECD Countries

  • In this paper, a special Gini coefficient is designed to study the status and trend of income inequality among OECD countries over the past ten years, based on the average annual wages of 34 OECD member countries from 2011 to 2021. Calculations and analyses show that income inequality among OECD countries deepened progressively from 2011 to 2013, peaking in 2013, and easing each year from 2014 to 2021. the 2008 financial crisis and the ensuing European debt crisis are some of the main reasons for the deepening of income inequality in the first three years, while the outbreak of the COVID-19 pandemic in 2020 is one of the main reasons for the increase in income inequality in the first three years. The COVID-19 outbreak in 2020 does not deepen inequality but continues the previous trend of moderation. 

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  • In this paper, a special Gini coefficient is designed to study the status and trend of income inequality among OECD countries over the past ten years, based on the average annual wages of 34 OECD member countries from 2011 to 2021. Calculations and analyses show that income inequality among OECD countries deepened progressively from 2011 to 2013, peaking in 2013, and easing each year from 2014 to 2021. the 2008 financial crisis and the ensuing European debt crisis are some of the main reasons for the deepening of income inequality in the first three years, while the outbreak of the COVID-19 pandemic in 2020 is one of the main reasons for the increase in income inequality in the first three years. The COVID-19 outbreak in 2020 does not deepen inequality but continues the previous trend of moderation.