Income Inequality Across Countries

Using the most recent figures south africa namibia and haiti are among the most unequal countries in terms of income distribution based on the gini index estimates from the world bank while.

Income inequality across countries. Richer countries tend to use income as a measure of welfare whereas poorer countries tend to use consumption. This is a list of countries or dependencies by income inequality metrics including gini coefficients the gini coefficient is a number between 0 and 1 where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the income and everyone else has no income. These estimates show that across the 24 countries covered taxes and transfers lower income inequality by around one third on average equivalent to around 0 15 gini points. Income is used here to refer generally to either measure both of which are adjusted for price differences across countries.

Integrating micro econometric and micro simulation approaches in a decomposition analysis it quantifies the role of tax benefit systems employment and occupational structures labour and financial market returns and demographic composition in accounting for differences in income inequality across countries. P90 p50 of the upper bound value of the ninth decile to the median income. Those with the highest gini coefficients it countries eh like the united kingdom israel united states turkey mexico and chile. Today 71 percent of the world s population live in countries where inequality has grown.

Monetary inequality can be measured as the flow of income or consumption. Since 1980 the world inequality report data has shown that the share of national income going to the richest 1 percent has increased rapidly in north america defined here as the united states and canada china india and russia and more moderately in europe. And p50 p10 of median income to the upper bound. P90 p10 is the ratio of the upper bound value of the ninth decile i e.

Income inequality between countries has improved yet income inequality within countries has become worse. This article documents wide ranging revisions to the standardized world income inequality database swiid which seeks to maximize the comparability of income inequality estimates for the broadest possible coverage of countries and years. Yet cross country differences are substantial with declines ranging from about 45 in denmark and sweden to about 8 in south korea. The 10 of people with highest income to that of the first decile.