OECD report highlights global impact of pay inequality

The Organisation for Economic Cooperation and Development (OECD) has published a new report that shows the growing impact pay inequality is having on a social scale worldwide.

According to new figures from the body, the gap between rich and poor in OECD nations has grown to its highest level for more than 30 years, with salary discrepancies highlighted as a major contributing factor.

Brazil was noted as the nation where this was most prevalent, with the income gap between the richest and poorest standing at 50 to one, while the gulf is also widening in traditionally egalitarian nations such as Germany, Denmark and Sweden.

OECD secretary-general Angel Gurria said this shows the need for a more proactive and comprehensive strategy on inclusive growth to be launched.

"This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility," he added.

Earlier this year, Sarah Anderson and Sam Pizzigati of the Institute for Policy Studies noted that the growing gap between the top-paid and lowest-paid workers in the US is likely to be impacting on morale.