Growth has returned since the global financial crisis, but it has not been inclusive. Wages of top earners have diverged from average and median wages, and wages have decoupled from productivity. Gender wage gaps remain substantial. Inequalities impact life chances, such as lower educational attainment for children of parents without an upper secondary education. To promote inclusive growth, policies should focus on quality education, jobs, regional investment, early childhood education, and benefiting the bottom 40% of income earners. Social protection, dialogue, and anticipating new inequalities from digital transformation are also important. Affordable housing remains a concern. An inclusive growth framework includes creating inclusive markets and work, investing in people and places, and rebuilding

1. GROWTH HAS RETURNED SINCE THE
GLOBAL FINANCIAL CRISIS, HOW CAN
IT BE MADE MORE INCLUSIVE?
Gabriela Ramos,
OECD Chief of Staff and Sherpa to the G20
GPN Meeting
London, United Kingdom
4 April 2018

2. What’s the issue?
 The top earners are pulling away from the rest
2
Source: OECD (2018 forthcoming), The Framework for Policy Action on Inclusive Growth.
100
110
120
130
140
150
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Wages of top 1% of income earners diverged
from the average and the median
(OECD average, 1995-2012)
Top 1% earners
Average
Median
100
110
120
130
140
150
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Wages decoupled from labour productivity
(OECD average, 1995-2013)
Labour productivity
Median (real
compensation)
Average (real
compensation)

3. 3
Gender wage gaps have changed little since 2010 and
remain substantial
Median monthly gender pay gap for full-time employees
OECD (2017), Bridging the Gap

4. 4
Inequalities impact life chances
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Tertiary Lower secondary or less
OECD (2017), Bridging the Gap. Secretariat calculations
using OECD PIAAC
Likelihood of educational attainment if neither parent has attained upper
secondary education

5. How to do it?
5
Change Growth Narrative to a people’s centred one: Focus on NEXUS.
Look at specific policy levers: quality education, quality jobs, investment in
regions, housing, Early childhood education,
Prioritize polices that benefit the Bottom 40% of the income deciles.
Strengthen Social Protection (tax and transfers) and Social Dialogue.
Children, Youth, Women, Ageing.
Anticipate new sources of Inequalities: the Digital Transformation (skill
biased; patent concentration; skills mismatch, training, AI and data,
frontier firms).

6. 6
0%
10%
20%
30%
40%
50%
Rent (private and subsidized) Owner with mortgage
Households' housing cost burden (median mortgage and rent cost)
(% of disposable income, 2014 or latest)
Source: OECD (2018 forthcoming), The Framework for Policy Action on Inclusive Growth.
Inclusive Growth Framework
 Equal foundations? Affordable housing remains a concern

7. Framework for Policy Action on Inclusive Growth
 … in a broader inclusive growth context
7
PILLAR 2
Create inclusive
markets & work
PILLAR 3
Invest in people &
places
PILLAR 4
Re-build trust in
government
PILLAR 1: Contribute to growth & benefit from it
Creating growth | Distributing well-being & assets | Accessing resources & markets
Boosting growth, business
dynamism & tech-
diffusion
Establishing low-carbon
and resource-efficient
economy
Achieving inclusive
labour markets
Promoting life-long
learning & skills
Improving material and
non-material well-being
Increasing social
mobility
Aligning IG policies
across the government
Screening policies for
inclusiveness impact &
accountability
Empowering state for
strong & inclusive growth
Context: Globalisation, digitalisation, demographics & climate change

8. Thank you!
8
Gabriela Ramos
OECD Chief of Staff and Sherpa to the G20
Contact: Gabriela.ramos@oecd.org
Follow me @gabramosp
For more details on the OECD and the Inclusive Growth
Initiative, see
http://www.oecd.org/inclusive-growth/