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inequality and higher overall levels of inequality, as shown in Figure 7. While most other
advanced economies have seen declines in prime-age male labor force participation, moreover,
the decline in the United States has been steeper than in almost every other advanced economy,
as shown in Figure 8.
If the difference between the United States and the other countries in inequality and labor force
participation pictured above cannot be explained by the rate of technological change and which
tasks are automatable, then it suggests that differences in a country’s policies and institutions
may mediate these changes. For example, other countries tend to invest far more resources on
active labor market programs that help workers navigate job transitions, such as training
programs and job-search assistance. While OECD member countries outside of the United States
spent, on average, 0.6 percent of GDP on active labor market policies in 2014, spending by the
20154681012141618201975 1980 1985 1990 1995 2000 2005 2010 2015United States United Kingdom
Canada France
Italy Japan
GermanyFigure 7: Share of IncomeEarned by Top 1 Percent, 1975- 2015
PercentSource: World Wealth and Income Database.707580859095100IsraelItalyUnited StatesNorwayFinlandIrelandTurkeyAustraliaDenmarkPolandCanadaBelgiumHungary
KoreaAustria
PortugalChile
Estonia
NetherlandsSloveniaUnited KingdomNew ZealandSpain
Germany
IcelandGreeceFranceSwedenSlovak RepublicMexico
LuxembourgJapanCzech RepublicSwitzerland2014 1990Figure 8: Prime-AgeMale Labor Force Participation Rates Across the OECD
Percent