Rising income inequality over the past 30 years has damaged growth rates in rich countries by limiting educational opportunities for poor children, according to research by the OECD, the group of mainly rich nations.
The finding that higher inequality harms economic performance mirrors the results of a similar study by the International Monetary Fund earlier this year. But the OECD’s analysis goes further because it concentrates on rich countries and attempts to establish the exact cause of inequality’s harmful effects on growth.
The OECD said the research showed governments should focus policy on ensuring poorer children gain better education and the supporting people into employment.
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