Rate of Wage Levelling or Diversification of OECD Member Countries: In Which Countries Are Wage More Inequality?

The main objective of this research is to capture wage inequality in OECD member countries and to find out in which countries wages are the most levelled and in which countries wages are the most diversified. The Gini coefficient and index were used for this purpose. The highest values of the Gini index were found in two Latin American OECD member countries, namely in Chile and Mexico, values exceeding 45 percent indicate strong wage diversification. On the contrary, Slovenia, Slovakia, the Czechia show a strong levelling of wages, the values of the Gini index are around 25 percent. The data for this research come from the official OECD statistical database and International Labour Organization Database (ILOSTAT). Gross annual wage after its conversion to purchasing power parity (PPP) in 2018 constant prices at USD is the main research variable. The data for this research includes employees in both business and non-business spheres. The wage is paid to the employee for the work done in the private (business) sphere, salary in the budget (state, public, non-business) sector.