Collective Bargaining and a Strategy for Reducing Income Inequality

TUAC, the Trade Union Advisory Committee to the OECD, has issued a short background paper entitled “The Role of Collective Bargaining as Part of a Comprehensive Strategy to Reduce Income Inequality.”  The paper comes on the heels of the release of the OECD’s new report on inequality “In It Together – Why Less Inequality Benefits All,” and offers a good overview of the falling wage share, surge in top incomes, and rising levels of income inequality in most OECD countries.  The report also usefully summarizes recent research conducted by the regional development banks and international financial institutions on the economic and social impacts of growing inequality. Last but not least, the TUAC paper makes the case for training and education investments, progressive tax reform measures, and steps to strengthen union density and collective bargaining as part of a comprehensive OECD strategy for reducing inequality.

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