ABSTRACT
This chapter documents recent trends in the overall distribution of disposable income in OECD countries, as well as identifying population groups who were among the winners and losers. It analyses the driving forces underlying these trends, including the frequently off-setting trends in the distribution of market-based incomes and the redistributive impact of taxes and transfers. The chapter provides an important context for making policy choices in this difficult area. The changes in the distribution of income are reflected in changes in poverty in the countries concerned. The most common measure of income poverty is the number of people with incomes below a given threshold. The number of people with a low income, is only one way of measuring poverty. Poverty is, however, a very personal state, and the amount of time that people spend below an income threshold is very important in determining living standards.
