Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Economics

Topic updates

HDI and the Palma Ratio

Geoff Riley

6th November 2015

Share this content:

The Palma ratio is a measure of inequality. It is the ratio of the richest 10% of the population’s share of gross national income (GNI) divided by the poorest 40%’s share. It is based on the work of Palma (2011), who found that middle class incomes almost always account for about half of GNI and that the other half is split between the richest 10% and poorest 40%, though their shares vary considerably across countries.

Share this content:

Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

You might also like

Macro Case Study: India's development

Topical case studies

Video Shorts on Economic Development

27th January 2026

In the News Teaching Activity – Should the government fully scrap the two-child benefit limit? (Nov 2025)

13th November 2025

Poverty & Inequality: The Economic Divide Explained

3rd March 2025

Development Economics in 2025: Challenges and Opportunities for Emerging Markets - Livestream Notes

20th February 2025

The Billionaire Boom: Wealth Concentration and Stalled Poverty Reduction

20th January 2025

In the News Teaching Activity – what are the economic problems caused by a regional skills gap? (Jan 2025)

16th January 2025

Development Strategies | Classroom Posters / Handouts

Poster / Student Handout