CONTENTS -- Disclaimer -- Chapter 1. Introduction Peter Hoeller and Mauro Pisu -- Inequality, Growth, and Well-being -- Inequality and Growth -- Inequality and Welfare -- Inequality Developments Before and During the Recent Economic Crisis -- References -- Chapter 2. Mapping Income Inequality Across the OECD Peter Hoeller, Isabelle Joumard, Mauro Pisu, and Debbie Bloch -- Introduction and Main Findings -- Main findings -- Drivers of Inequality -- Individual Labor Earnings1 -- Moving from Individual to Household Labor Earnings -- Moving from HLEs to Total Market Income -- The Contribution of the Market Income Components to Overall HMI Inequality -- The Distribution of HDI -- Adding In-kind Transfers -- Characterizing Cross-country Inequality Patterns -- Country Profiles Trace the Various Inequality Dimensions -- A Cluster Analysis Allows Identifying Groups of Countries Sharing Similar Inequality Patterns -- Inequality and Poverty in Large Emerging Economies -- Global Inequality -- References -- ANNEX -- Annex 2.1: Measures of Income Inequality -- Chapter 3. The Distribution of Labor Income Isabell Koske, Jean-Marc Fournier and Isabelle Wanner -- Introduction and Main Findings -- Main Findings -- Cross-country Patterns and Recent Trends in Labor Income Inequality in OECD Countries -- The Role of Non-policy Factors in Shaping Labor Income Inequality -- Skill-biased Technological Change -- Globalization -- The Role of Structural Policies in Shaping Labor Income Inequality -- Education Policy -- Labor Market Institutions -- Minimum wages -- Wage bargaining -- EPL: overall stringency and gap between regular and temporary contracts -- Unemployment and social assistance benefits -- Active labor market policies -- Interactions between labor market policies and globalization -- Product Market Regulation -- Tax Policy -- Other Policy Issues.

Gender inequality -- Migration -- Identifying Reform Options to Reduce Labor Income Inequality -- References -- ANNEXES -- Annex 3.1: Bayesian model averaging analysis: additional estimation results and details on the dataset used -- Annex 3.2: Assessing the determinants of labor earnings inequality based on quantile regressions -- Annex 3.3: Explaining cross-country differences in labor earnings inequality - a decomposition based on unconditional quantile regressions -- Chapter 4. Income Redistribution via Taxes and Transfers Isabelle Joumard, Mauro Pisu and Debbie Bloch -- Introduction and Summary -- Main Findings -- The redistributive impact of taxes and transfers -- Indicators of tax and transfer policies help in identifying reform options and different country models -- The Redistributive Impact of Taxes and Transfers -- The Redistributive Impact of Cash Transfers: Cross-country Differences and Driving Forces -- The redistributive impact of cash transfers is large but varies a lot across countries -- The redistributive impact of pension systems depends on their design -- Disability benefits are redistributive but risk creating poverty traps -- Unemployment benefits are mostly insurance-based and thus not very progressive -- Family cash benefits are targeted toward low-income groups -- The Redistributive Impact of Taxes: Cross-country Differences and Driving Forces -- Redistribution via household taxes as gauged by household surveys -- Going beyond household surveys when assessing the redistributive impact of taxes -- Labor income taxes: progressivity indicators based on statutory tax schedules -- Despite cuts in top marginal rates, labor taxes have often become more progressive -- The progressivity of the personal income tax is often hollowed out by tax expenditures.

Taxes on capital income have been reduced and are often lower than taxes on labor income -- Property taxes play a minor role in many OECD countries -- Real estate taxes are regressive in some countries -- Wealth, inheritance, and gift taxes have been reduced in many countries -- Consumption taxes tend to be regressive -- A Limitation of the Analysis: The Incidence of Taxes and Transfers -- Tax and Cash Transfer Policy Indicators Help Identify Reform Options and Types of Welfare Systems -- A Set of Policy Indicators on Taxes and Cash Transfers -- In Australia, taxes and transfers are smaller but more progressive than the OECD average -- In Germany, taxes and transfers are larger but less progressive than the OECD average -- Five Tax and Transfer Systems Can Be Identified -- References -- Chapter 5. Poverty Mauro Pisu -- Introduction and Main Findings -- Main Findings -- International Comparisons and Poverty Trends -- Children and the Elderly are More Likely to be Poor than the Working-age Population -- Women are More Likely to be Poor than Men -- Households with Children are Poorer than Those Without -- Paid Work Reduces but Does not Eliminate Poverty -- Redistribution Strategies -- Work Strategies -- Policies to Reduce Poverty among Children -- In-kind Transfers and Poverty -- References -- Chapter 6. Top Incomes Peter Hoeller -- Introduction and Main Findings -- Main Findings -- Top income developments -- Forces shaping top income developments -- Top Income Developments -- Forces Shaping Top Income Developments -- Taxation -- Technical Progress and Globalization -- Remuneration Issues -- References -- Chapter 7. The Distribution of Wealth Kaja Bonesmo Fredriksen -- Introduction and Main Findings -- Main Findings -- Measuring the Distribution of Wealth -- Inequality of Net Worth -- The Role of Various Assets and Liabilities.

Trends in Wealth Inequality Over Time -- Determinants of Wealth Inequality -- Socioeconomic Characteristics of the Population -- Other Determinants of Wealth Inequality -- References -- Chapter 8. Conclusion: Growth-Enhancing Policies and Inequality Isabelle Joumard and Isabell Koske -- Introduction and Main Findings -- Main Findings -- Reducing Labor Income Inequality and Boosting GDP per Capita: Policy Trade-offs and Complementarities -- Growth-enhancing Policy Reforms that are Likely to Reduce Income Inequality -- Improving the quality and quantity of education -- Promoting equity in education -- Reducing the gap between employment protection on temporary and permanent work -- Increasing the spending on ALMPs -- Promoting the integration of immigrants -- Fostering female labor market participation -- Avoiding gender stereotyping in education -- Fighting discrimination -- Growth-enhancing Policy Reforms that are Likely to Raise Income Inequality -- Increasing the flexibility of wage determination -- Growth-enhancing Policy Reforms that have an Uncertain Impact on Income Inequality -- Avoiding too high and long-lasting unemployment benefits -- Liberalizing product markets -- Lowering minimum labor costs -- The Inequality and Growth Nexus Associated with Taxes and Transfers -- Growth-enhancing Tax Policy Reforms that are Likely to Reduce Income Inequality -- Re-assessing those tax expenditures that benefit mainly high-income groups -- Reducing distortions in taxing capital income -- Growth-enhancing Tax Policy Reforms that are Likely to Raise Income Inequality -- Shifting the tax mix from personal and corporate income taxes toward real estate and consumption taxes -- Growth-enhancing Tax Policy Reforms that have an Uncertain Impact on Income Inequality -- Moving from income to wealth or inheritance tax.

Moving from social security contributions (or flat labor income taxes) to consumption taxes -- The Impact of Transfer Policies on Growth Depends Very Much on Their Design -- References -- About the Authors -- Index.