OECD: Income inequality between metropolitan and rural areas is increasing

In a significant number of Organization for Economic Co-operation and Development (OECD) countries, inequality in average income in metropolitan and rural areas has been found to be increasing.

According to the OECD Regional Outlook Report, levels of gross domestic product (GDP) per capita have converged across OECD economies due to the high growth performance of low-income economies over the past 20 years.

Despite this, income inequality between metropolitan and rural areas has increased in 15 of the 27 OECD countries for which relevant data is available. GDP averaged 32 percent higher in metropolitan areas than in rural areas. As cities continue to grow and attract skilled workers, the number of workers and populations have declined in other regions.

Specially designed policies and institutional measures are needed to eliminate these “permanent inequalities” between regions.

In his assessment of the report, OECD Secretary-General Mathias Cormann stated that, according to available data, the income gap between regions has widened in 15 of the 27 OECD countries and made the following statement:

“This situation is largely explained by less access to opportunities for workers and companies. To help stimulate growth in lagging regions, policy frameworks must address persistent inequalities, improve access to public services and infrastructure, and increase productivity and competitiveness. “These steps should also include better assessment of digital transformation opportunities for regions and improved governance and government capacity.” (AA)