Income Distribution and Poverty in Selected OECD Countries

This working paper presents evidence on changes in income distribution and poverty in thirteen OECD countries over the two decades up to the first half of the 1990s. While country experience has been variable, income and poverty rose in most countries. Both earnings and capital and self employment incomes contributed to these developments, partly offset by an increase in the importance of (progressive) taxes and transfers in total income. Increases in the share of no-worker households appears to have contributed to widening income distribution. Transfers appear to be relatively evenly spread across income groups in a number of countries, reflecting the weight of age-related transfers. An analysis of average incomes and poverty by household type, suggests that the retirement-age population has tended to do better, while younger households and households with children have become less well off and poverty has tended to shift from the old to the young. This mainly reflects ...