The main metric economists use to measure inequality is deeply flawed

The main metric economists use to measure inequality is deeply flawed

Quartz - Latest stories·2020-12-05 16:01

In 2015, Greece, Thailand, Israel, and the UK were equally unequal. That is, all four countries had the same Gini coefficient, a common measure of income inequality.

The number suggests that the spread of incomes in the four nations was the same. However, a closer look at the poorest and wealthiest people in those societies shows a very different picture of inequality. The ratio between income held by the richest 10% and the poorest 10% ranged significantly from 13.8 in Greece to 4.2 in the UK.

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