Inequality hurts economic growth, finds OECD research - European Statistical System (ESS)

Reducing income inequality would boost economic growth, according to new OECD analysis. This work finds that countries where income inequality is decreasing grow faster than those with rising inequality.

 
The single biggest impact on growth is the widening gap between the lower middle class and poor households compared to the rest of society. Education is the key: a lack of investment in education by the poor is the main factor behind inequality hurting growth.

 
"This compelling evidence proves that addressing high and growing inequality is critical to promote strong and sustained growth and needs to be at the centre of the policy debate," said OECD Secretary-General Angel Gurría. "Countries that promote equal opportunity for all from an early age are those that will grow and prosper."