Monday , December 23 2024
Home / SNB & CHF / Income inequality in Switzerland remains stable after redistribution

Income inequality in Switzerland remains stable after redistribution

Summary:
Income inequality in Switzerland has remained stable according to a report published by Switzerland’s Federal Statistical Office. © Arturo Osorno _ Dreamstime.com - Click to enlarge A key measure of inequality involves dividing the income share of the top 20% by that of the bottom 20%, a measure known as S80/S20. 1 is complete equality. In 2015, the latest figure, the S80/S20 for Switzerland was 38.2, which means the top 20% had 38.2 times the income of the bottom 20%. This however was before tax and other redistribution. After the redistributive effects of tax and welfare, the ratio dropped from 38.2 to 4.8. As a result, the income share of the bottom 20% rose from 1.2% to 7.8%, and the share of those in the top

Topics:
Investec considers the following as important: , , , , , , , ,

This could be interesting, too:

Investec writes Federal parliament approves abolition of imputed rent

Nachrichten Ticker - www.finanzen.ch writes Krypto-Ausblick 2025: Stehen Bitcoin, Ethereum & Co. vor einem Boom oder Einbruch?

Connor O'Keeffe writes The Establishment’s “Principles” Are Fake

Per Bylund writes Bitcoiners’ Guide to Austrian Economics

Income inequality in Switzerland has remained stable according to a report published by Switzerland’s Federal Statistical Office.

Inequality

© Arturo Osorno _ Dreamstime.com - Click to enlarge

A key measure of inequality involves dividing the income share of the top 20% by that of the bottom 20%, a measure known as S80/S20. 1 is complete equality.

In 2015, the latest figure, the S80/S20 for Switzerland was 38.2, which means the top 20% had 38.2 times the income of the bottom 20%. This however was before tax and other redistribution.

After the redistributive effects of tax and welfare, the ratio dropped from 38.2 to 4.8. As a result, the income share of the bottom 20% rose from 1.2% to 7.8%, and the share of those in the top 20% slid from 44.5% to 37.2%. The share of the 60% in the middle remained roughly the same: 54.3% before redistribution and 55.0% after redistribution.

While raw income inequality before redistribution, measured using the S80/S20, climbed significantly from 19.0 to 38.3 between 2000 and 2015, after tax and welfare payments, it rose only modestly from 4.3 to 4.8.


Tags: ,,,,,,
About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *