What are the links between inequality, employment rate and income distribution?

The relationships between inequality, employment rate and income distribution can be complex: A rise in the employment rate normally reduces inequality by reducing exclusion from the labour market; but this effect may be reduced if the rise in employment is obtained by low-skilled, low-income employees returning to the labour market; The positive effect of the rise in the employment rate on inequality is even more reduced if this rise is obtained by a skewing of income distribution at the expense of employees; High inequality before redistribution lead s to large-scale redistributive policies, leading to a high tax burden that may reduce the employment rate; this reinforces the negative correlation between employment rate and inequality seen above . When comparing OECD countries, we see that the correlations that seem significant are: High income inequality is associated with a low employment rate; A skewing of income distribution has weak effects on the employment rate and no significant effect on inequality; High income inequality before redistribution lead s to large-scale redistributive policies that reduce the employment rate even more.