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- Income inequality
Inequality
Inequality can refer to economic inequality which is the difference in how assets, wealth, or income are distributed among individuals and/or populations. It is also described as the gap between rich and poor, income inequality, wealth disparity, wealth and income differences, or the wealth gap.
Inequality can also refer to gender discrimination in social institutions and other gender issues such as the violence against women.
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English Also available in:French
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Keywords: inequality, gini, wealth, index, income, gender
Income inequality
Income is defined as household disposable income in a particular year. It consists of earnings, self-employment and capital income and public cash transfers; income taxes and social security contributions paid by households are deducted. The income of the household is attributed to each of its members, with an adjustment to reflect differences in needs for households of different sizes. Income inequality among individuals is measured here by five indicators. The Gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. S80/S20 is the ratio of the average income of the 20% richest to the 20% poorest; P90/P10 is the ratio of the upper bound value of the ninth decile (i.e. the 10% of people with highest income) to that of the first decile; P90/P50 of the upper bound value of the ninth decile to the median income; and P50/P10 of median income to the upper bound value of the first decile. The Palma ratio is the share of all income received by the 10% people with highest disposable income divided by the share of all income received by the 40% people with the lowest disposable income.
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English Also available in:French
Keywords: income, income distribution, gini coefficient, wealth, income inequality
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OECD iLibrary:
http://instance.metastore.ingenta.com/content/data/459aa7f1-en
https://doi.org/10.1787/459aa7f1-en