2014-09 Unequal Income Distribution

This chart of unequal income distributions was prepared using the Gini coefficient. The Gini coefficient (also known as the Gini index or Gini ratio) is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents. In theory, expressed as a percentage, it varies from 0 to 100: 0 indicating perfect equality (where everyone has the same income) and 100 indicating complete inequality (where one person receives the total income) in the country’s population.

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EuCham Research September 2014 Unequal income distributions in Europe 1 Latvia 35.7 2 Spain 35.0 3 Portugal 34.5 4 Greece 34.3 5 Bulgaria 33.6 …     30 Slovenia 23.7 31 Norway 22.6 Gini coefficient of equivalised disposable income on a scale of 0 to 100, indicating perfect equality to inequality. 31 European countries were considered

Latvia has the most unequal income distributions among 31 European countries The chart continues with 3 Mediterranean countries: Spain, Portugal and Greece Slovenia and Norway are ranked #30 and #31, indicating a relatively equal income distribution   Source: eucham.eu/research

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This chart of unequal income distributions was prepared using the Gini coefficient. The Gini coefficient (also known as the Gini index or Gini ratio) is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents. In theory, expressed as a percentage, it varies from 0 to 100: 0 indicating perfect equality (where everyone has the same income) and 100 indicating complete inequality (where one person receives the total income) in the country’s population.

However, in practice the value range is tighter. In the CIA World Factbook, the values vary from 23 (Sweden, Scandinavia, 2005) to 63.2 (Lesotho, South of Africa, 1995), far greater than the highest value in Europe. Besides the Scandinavian countries such as Norway and Sweden, some Central and Eastern European countries in particular Slovenia, Czech Republic and Slovakia are also ranked as having relatively equal income distribution in the ranking below.

Table 1: Gini coefficient of equivalised disposable income of 31 European countries, 2013 data

Source: SILC (2013) at epp.eurostat.ec.europa.eu
EuCham Research Department – Compiled by Valeria Varga, reviewed by Kenneth Vekima