The document discusses opportunities for inclusive growth presented by the OECD Framework. It notes wealth and income inequality are at record highs, with little chance for low-income groups or new generations to improve their economic positions. It also finds less business dynamism and large regional disparities in incomes across countries. The framework proposes using indicators to track inclusive growth and gearing up equity in policies to transform economic growth into improved living standards for all.

1. OPPORTUNITIES FOR ALL:
OECD Framework to Drive “Urgent,
Concerted Effort” for Inclusive Growth
29 MAY 2018
Gabriela Ramos
Chief of Staff, Sherpa and Leader of the Inclusive Growth
Initiative

2. © OECD |
No chance for low and middle-classes to gain
1Opportunities for All: OECD Inclusive Growth Framework
Source: OECD Framework for Policy Action on Inclusive Growth; Schwellnus et al. (2017).
100
125
150
1995 2005 2015
Wealth inequality at record high
(OECD average) – Share of assets by quintiles of the wealth distribution
Wages of top 1% of income earners
diverged from the average and the median
(OECD average)
Top 1% earners
Median
Average
Source: Balestra and Tomkin (2018).

3. © OECD |
No chance for new generations to be better off
2Opportunities for All: OECD Inclusive Growth Framework
Source: OECD Framework for Policy Action on Inclusive Growth; OECD (2017), Preventing Ageing Unequally.
-20
-10
0
10
20 1980s (↗) 1950s
Changes in Gini indices across birth cohorts in percentage points
(income inequality for those born in the 1980s is much higher than among their parents at the same age)

4. © OECD |
No chance for new firms to succeed
3Opportunities for All: OECD Inclusive Growth Framework
Note: Countries included are Austria, Belgium, Chile, Denmark, Hungary, Italy, Japan, the Netherlands, Norway and Portugal. Source: OECD Framework for Policy Action on
Inclusive Growth; OECD Multiprod; Andrews, Criscuolo and Gal, 2016.
-0.01
0.01
0.02
0.04
2000 2003 2005 2007 2009 2011
Lower contribution of entrants to
aggregate productivity growth
0.15
0.20
0.25
0.30
2000 2003 2005 2007 2009 2011
Lower share of entrants in total
output

5. © OECD |
No chance for places left behind
4Opportunities for All: OECD Inclusive Growth Framework
0
25 000
50 000
USA ITA AUS CAN ESP CHE DEU ISR TUR GBR FRA SWE CHL MEX NLD FIN CZE NOR IRL GRC BEL DNK AUT POL HUN SVK
Lowest regional value Country average Highest regional valueUSD PPP
Note: The figure shows the equalised mean disposable household income in the richest and poorest regions (large TL2 regions) in OECD countries, 2013 or latest. Data are
expressed in USD constant prices, PPP (reference year 2010). Ceuta and Melilla regions are not included in Spanish regions.
Source: OECD Framework for Policy Action on Inclusive Growth; OECD Regional Statistics database.
Large regional disparities in mean disposable income

6. © OECD | 5Opportunities for All: OECD Inclusive Growth Framework
How can we know? Say it with indicators

7. © OECD | 6Opportunities for All: OECD Inclusive Growth Framework
How can we know? Say it with indicators
Growth and
equitable sharing of
benefits from growth
Inclusive and well-
functioning markets
Equal opportunities
& foundations of
future prosperity
Governance
10%
12%
2011 2015
Example: Relative poverty
(% of population with income below
50% of median income)
OECD average Country trends
Example: Median household
disposable income, Canada
(% average annual growth rate)

8. © OECD | 7Opportunities for All: OECD Inclusive Growth Framework
What can be done? Gear up equity in policies
Transform economic growth into improved
living standards for all and give to the bottom
40% a chance to achieve their full potential, by
1. Investing in people and places that have
been left behind;
2. Supporting business dynamism and
inclusive labour markets; and
3. Building efficient and responsive
governments.