Inequality And Poverty

 Many people worry that the benefits of economic growth have not been equally distributed, and that the current financial crisis has further worsened the gap between the rich and the poor.

The OECD studies the patterns and trends in poverty and inequality for both developed and developing nations. Its research examines the various factors that contribute to rising inequality, including globalization, technological advancement, and changes in redistribution laws. Additionally, it evaluates how well social and labor market policies work to combat extreme inequality and poverty.

Understanding Social Mobility

Few options exist for people from underprivileged backgrounds to move up the socioeconomic ladder. In OECD countries, children who experience the greatest socioeconomic disadvantage as youngsters can expect to earn up to 20% less as adults than those who have more favorable childhoods. For kids from low-income homes to get close to the average income in their country across the OECD economies, it takes roughly 5 generations. Unfair chances threaten social and economic progress in addition to being immoral.

Observatory on Social Mobility and Equal Opportunity

Successful communities and economies depend on social mobility and equitable opportunity. Nonetheless, given the situation, they continue to be major obstacles. The newly established OECD Observatory on Social Mobility and Equal Opportunity will serve the following purposes in order to assist nations in addressing these issues and to build on the OECD's extensive expertise in the area:

• increase efforts to collect data in order to monitor social mobility and equal opportunity and to comprehend the causes of these difficulties.
• examine how laws might encourage social mobility and remove obstacles to fair opportunity; and
• Examine how the commercial sector and civil society might promote equal opportunity

The Observatory's initiatives support the OECD's overall efforts to combat inequality and poverty. Low social mobility and long-lasting disadvantage are likely results when there are significant disparities in the distribution of economic resources, employment opportunities, and social outcomes. The appropriate combination of policies, such as those that address social and welfare issues, the labor market, and educational initiatives, can promote greater equality of opportunity.