Understanding income inequality

income inequality

2 thoughts on “Understanding income inequality

  1. Great infographic Alex, thanks. I was interested in the slight tailing off toward the end of the ‘noughties’ in the UK graph of the top 1% income share. Looking for a possible reason, I found that according to the most recent JRF/IFS poverty and inequality in the UK report, there were two main reasons for a fall in income inequality between 2007–08 and 2011–12 (despite a rise in earnings inequality): 1) earnings make up a larger fraction of overall income for those with the highest incomes, so falling real earnings had a bigger negative impact on incomes for richer households; 2) real increases in income from benefits and tax credits bolstered household incomes at the bottom of the income distribution to some extent. So according to the report authors the apparent reduction in inequality is likely to be a temporary phenomenon.
    Looking forward to more thought-provoking blogs and graphics!

    Like

    • Thanks Alan. Some interesting findings there and I’m not surprised to hear that the tailing off is probably temporary given that the rest of the evidence would suggest worsening inequality.

      Like

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s