Income Inequality In Us Vs Other Countries
Luckily emmanuel saez and his colleagues have devoted considerable effort in assembling a database that contains the income share of top earners in many countries.
Income inequality in us vs other countries. Income inequality in the us vs. As was the case with the previous graphs they used data from tax returns. The figure below shows a negative relationship between the level of income per capita which is a measure of technological progress and the gini coefficient of income which is a measure of inequality within a country. 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.
This implies that public policy choices rather than market factors drive u s. There s new data on income inequality out from the oecd thursday so we thought we d take a look to see how the u s. Among the countries with more unequal income distributions were france the u k. Notice that the united states is one of two g 7 countries canada france germany italy japan the uk and the usa that.
Had a gini coefficient of 0 434. Compare with other countries. In very few countries. In the other g7 nations the gini ranged from 0 326 in france to 0 392 in the uk.
Income and wealth inequality in the us makes this the pressing issue of our time. The annual average income in the uk of the top 10 in 2008 was just under 55 000 about 12 times higher than that of the bottom 10 who had an average income of 4 700. Income inequality in other nations is a danger to the entire world. We looked at the 31 oecd countries that had both sets of gini scores for a reasonably recent year in most cases 2010 before accounting for taxes and transfers the u s.
Ranked 10th in income inequality. Rich countries tend to have lower income inequality than developing countries. In this study the poverty line is worked out as half the median income for the country. One 2013 study indicated that us market income inequality was comparable to other developed countries but was the highest among 22 developed countries after taxes and transfers.
In 2017 the u s. To compare income inequality across countries the oecd uses the gini coefficient a commonly used measure ranging from 0 or perfect equality to 1 or complete inequality. Income inequality disparities relative to other developed nations. By ana maria santacreu economist and heting zhu research associate.
Other countries how does the u s.