Report: Mexican income gap among OECD’s worst

Question: what do the U.S. and Mexico have in common besides a common border?

Answer: Vast income inequality and high poverty rates.

Only two of 30 nations, Mexico and Turkey, are ahead of the United States for income inequality and poverty rates, or the gap between rich and poor, according to a report released Tuesday.

The report was released by Paris-based Organization for Economic Cooperation and Development of its 30 member-nations, most of which are developed countries.

In terms of Mexico, the OECD study found income gaps shrinking over the past five years. Yet 22% of children and nearly 30% of Mexicans over the age of 65 live in households with an income below the poverty line. Furthermore, the average income of the poorest 10% is approximately 25 times less than the top 10%.

OECD Secretary General Angel Gurria warned that governments in developed and underdeveloped countries must be more active against the problems of inequality. “Growing inequality is divisive. It polarizes societies, it divides regions within countries, and it carves up the world between rich and poor," he said.

Image- Diario La Verdad
Sources- Bloomberg, ft.com, AFP, AHN