[Graphic News] OECD forecasts worsening income gaps

By Korea Herald
  • Published : Jul 6, 2014 - 21:07
  • Updated : Jul 7, 2014 - 11:54

A new report from the Organization for Economic Cooperation and Development shows that South Korea’s income gap will be the third-largest among the 29 member countries by 2060.

The report says that the income of South Korea’s richest 10 percent will be nearly 6.5 times larger than the bottom 10 percent of the income ladder over the coming 50 years.

South Korea’s top earners made 4.85 times more than those in the bottom 10 percent did on average in 2010, according to the report.

The OECD predicted that Israel would top the list in 2060 in income inequality, followed by the United States. The OECD attributed the widening gap to highly skilled workers benefiting from technological advances. The report suggested that in order to resolve income inequality, governments need to invest more in education and build more progressive tax systems.