Inequality between rich and poor at record high level: OECD

The gap between the rich and poor widened further, reaching the highest level in three decades, according to a new report from the Organization for Economic Development and Cooperation (OECD) released on Thursday.

"We have reached a tipping point. Inequality in OECD countries is at its highest since records began," said Angel Gurria, OECD Secretary-General.

The think-tank has found the top 10 percent of the population earning 9.6 times the income of the poorest 10 percent, compared to 7.1 percent in the 1980s and 9.1 percent in the 2000s.

Inequality is the highest among OECD countries in Chile, Mexico, Turkey, the United States and Israel, and lowest in Denmark, Slovenia, Slovak Republic and Norway. The gap is also higher in major emerging economies although it has fallen in many including Brazil, the OECD wrote.

"The evidence shows that high inequality is bad for growth. The case for policy action is as much economic as social. By not addressing inequality, governments are cutting into the social fabric of their countries and hurting their long-term economic growth," Gurria noted.

In order to reduce inequality and boost growth, the Paris-based organization recommended more investment in education, improving gender equality in employment and broaden access to better jobs. Endit