The income gap was shrinking under Gillard - OECD

INCOME inequality in Australia fell slightly in 2011, with world-wide disposable income stagnating for the fourth year running, new OECD analysis shows.

The latest report on global income inequality from the OECD showed inequality fell 1% in Australia, with similar falls in Canada, Ireland and Israel.

But western Europe continues to suffer the lingering effects of the global financial crisis, with inequality rising more than 1% in Germany and Portugal, up 1.5% in Spain and 3% in Greece.

The widest gap between rich and poor in the latest global data was found in Mexico, Chile, Turkey and the United States, while Denmark, Finland and Slovenia were the most equal.