What is the Palma Ratio? | tutor2u Economics
Student videos

What is the Palma Ratio?

  • Levels: AS, A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

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.

What is the Palma Ratio?

Countries with the highest Palma Ratio (2015)

Country Quintile ratio Palma ratio  Gini coefficient
South Africa 27.9 7.1 63.4
Haiti 32.5 6.5 60.8
Botswana 22.9 5.8 60.5
Namibia 20.3 5.8 61.0
Central African Republic 18.3 4.5 56.2
Zambia 16.0 4.3 55.6
Lesotho 20.5 4.3 54.2
Colombia 17.3 3.9 53.5
Brazil 15.5 3.5 51.5

Countries with the lowest Palma Ratio in 2015

Country Quintile ratio Palma ratio  Gini coefficient
Ukraine 3.3 0.8 24.1
Slovenia 3.7 0.9 25.6
Norway 3.8 0.9 25.9
Slovakia 4.0 0.9 26.1
Kazakhstan 3.7 0.9 26.3
Czech Republic 3.8 0.9 26.1
Sweden 4.2 0.9 27.3

Subscribe to email updates from tutor2u Economics

Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Related Collections

Teaching Vacancies


Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u

A New Home for tutor2u Resources

We've just flicked the switch on moving all our digital resources to instant digital download - via our new subject stores.

For every subject you can now access each digital resource as soon as it is ordered. This will always be the latest edition of each resource too (and we'll update you automatically if there is an upgraded version to use).

Simply add the required resources to your cart, checkout using the usual options and your resources will be available to access immediately via your mytutor2u account.