Topic Videos
Alternative Measures of Income Inequality
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 21 Mar 2021
This short revision video looks at two alternative measures of the scale of income inequality - namely the S80-S20 ratio and the Palma Ratio. The video draws on the latest available data for countries with the highest and the lowest measured income inequality.
S80-S20 Quintile ratio
This is the ratio of the average income of the richest 20% of the population to the average income of the poorest 20% of the population
Palma Ratio
The Palma Ratio is the ratio of the richest 10% of the population's share of gross national income divided by the poorest 40%'s share
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