Millennials in advanced economies around the world are being squeezed out of the ranks of the middle class, including in Britain, as pay growth stalls and house prices skyrocket, according to the OECD.
The snapshot of modern life for middle class households around the world suggests that younger generations are increasingly being denied similar opportunities to their parents.
As many as 70% of the baby boomers – born between 1942 and 1964 – were part of the middle class in their 20s, compared with 60% of millennials – born between 1983 and 2002 – at the same point in life, the OECD said.
While the situation in Britain has been less pronounced than the OECD average, with 63% of baby boomers, compared to 59% of millennials, the report found that families in the middle-income group had been squeezed.
The OECD recommended governments review and adapt the tax system, as well as reforms in housing and education to make it more accessible.
Angel Gurría, the OECD secretary-general, said: “Today the middle class looks increasingly like a boat in rocky waters.
“Governments must listen to people’s concerns and protect and promote middle class living standards. »