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HDI and the Palma Ratio

Geoff Riley

6th November 2015

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.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty 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 conferences in the UK and overseas.

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