Income Inequality, mid-2000s: out of 17 countries, USA rates #17

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WHEN I SEE STUDIES COMPARING THE POSITIVE / NEGATIVE ASPECTS OF VARIOUS COUNTRIES, it’s seems like lately Denmark and Sweden are always full of win.

From The Conference Board of Canada:

Putting income inequality in context

Income inequality is the extent to which income is distributed unevenly in a country. It is an important indicator of equity in an economy, and has implications for other social outcomes such as crime and social exclusion.Although the 17 peer countries are among the wealthiest in the world, the income per capita figure does not tell us how this income is distributed. Income inequality within countries is often masked by the national average.In the last few years, income inequality has been in the media spotlight. There is widespread concern around the globe that the “rich are getting richer, and the poor are getting poorer.” For example, a recent study by Berkeley professor Emmanuel Saez found that “income inequality in the United States is at an all-time high, surpassing even levels seen during the Great Depression.”1 He reports that the top 10 per cent of income earners in 2007 accounted for 49.7 per cent of total U.S. income—“a level higher than any other year since 1917 and even surpasses 1928, the peak of stock market bubble in the ‘roaring’ 1920s.”2

What does the Gini coefficient mean?

The Gini coefficient (named after the Italian statistician Corrado Gini) is the most commonly used measure of income inequality. It calculates the extent to which the distribution of income among individuals within a country deviates from a perfectly equal distribution. A Gini coefficient of 0 represents perfect equality (that is, every person in the society has the same amount of income); a Gini coefficient of 100 represents perfect inequality (that is, one person has all the income and the rest of the society has none).

How does Canada compare to its peers?

Income inequality is higher in Canada than in 11 of the peer countries. Although Canada’s wealth is distributed more equally than in the U.S., Canada’s 12th place ranking suggests it is doing a mediocre job of ensuring income equality. Canada gets a “C” grade on this indicator.

Denmark and Sweden, which have the lowest levels of poverty among children and their working-age populations, are also the clear leaders on the income inequality indicator. The relationship between social spending and poverty rates has become more obvious over time, so it is no surprise that these leading countries boast strong traditions of wealth distribution. Their success in maintaining low poverty rates is attributable to a universal welfare policy that has been effectively combined with job creation strategies that support gender equality and accessibility.

[...] Denmark, Finland, and Sweden have consistently been the leaders on this indicator, scoring “A” grades for each decade. The U.S. and Italy have been consistent “D” performers.

(via: other-stuff)

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