OECD: Income inequality slows growth significantly

London

WIDENING inequality creates a drag on economic growth that can be counteracted by tax policies to benefit the less well-off, according to the Organisation for Economic Co-operation and Development (OECD).

In an analysis published on Tuesday, the Paris-based group said it undermines growth by preventing disadvantaged people from accessing education to develop their skills, impeding social mobility.

To offset the damage, policymakers need to be concerned with the general w…