In It Together: Why Less Inequality Benefits All

The latest OECD report on inequality paints a disturbing picture. The world is getting more unequal. The richest 10% of the OECD population now earns 9.6 times more than the poorest 10%. In 2012, the poorest 40% owned 3% of the household wealth in the OECD countries -- while the top 10% controlled over half; with the top 1% owning 18%.

Increasingly, the culprit is low paying, non-standard work (temporary and contract). Between 1995 and 2013, 50% of new jobs created fell into this category -- and the disproportionately are youth and females. No surprise there. The OECD warns that the long term economic and social cohesion impacts will be significant if governments don't take steps to address the gap. Businesses also need to step up, as there is a direct impact to their viability.

In Canada, income inequality has not increased during the economic downturn -- with Canada trending with the OECD average. But, the gap in pay between full-time workers and non-standard workers is huge. The OECD average has temporary workers earning 75% of their full-time counterparts. In Canada, that number is a a staggering 57%. Canada has the worst poverty numbers for non-standard workers than other OECD countries. And it gets worst. Unlike other OECD countries, the tax and benefit system doesn't do as much to address the inequality gap. Children are at most risk to being impacted by poverty, at 14.4%. Women fare better, by having better participation in the labour market than the other OECD countries -- but women in Canada suffer the greatest in gender pay gap, at 19% compared to the OECD average of 15%

The OECD recommends the promotion of gender equality, greater investment in education and skills, and redistribution of wealth via taxes and transfers -- specifically calling out the need for policies to be strengthened to ensure wealthier individuals and multinational firms, pay their share of taxes.