Are middle-paid jobs in OECD countries disappearing? : An overview

This paper provides evidence that from 1985 to 2005, two thirds of OECD countries have seen an increase in earnings inequality. In nearly half of these countries, the widening was driven by an increase in inequality at both the top and the bottom of the distribution. In the other half, rising overall inequality was reflecting a relative increase in high earnings only. This paper also reviews the literature and shows that in several OECD countries, a rise in low-paid employment and a process of polarisation in net employment growth have been observed. The factors behind the increase in earnings inequality and job polarization are multiple and include the influences on labour demand and labour supply incentives, as well as institutional factors (minimum wages, the employment relationship, etc).