Income differentials 

Updated: 20.12.2016 - Next update: 20.12.2017
   
 
 
Share

Income differentials grew slightly in 2015

Statistics Finland's total statistics on income distribution show that income differentials grew somewhat in 2015 compared with the previous year. Real income increased in all income deciles, but less for those with medium income than for those with high and low income. The income level of the population's highest-income decile grew by 2.7 per cent in real terms from 2014 to 2015. The income of income deciles V to IX increased by 0.8 per cent. The income level of the lowest-income decile rose by 1.4 per cent.


Source:
Statistics Finland / Total statistics on income distribution


Description of indicator

The Gini coefficient is the most common indicator describing income differences. The higher value the Gini coefficient gets, the more unequally is income distributed. The biggest possible value for the Gini coefficient is one. Then the highest earning income recipient receives all the income. The smallest Gini coefficient value is 0, when the income of all income recipients is equal. In the income distribution statistics, Gini coefficients are presented as percentages (multiplied by one hundred). The Gini coefficient describes relative income differences. The Gini coefficient does not change if the incomes of all income earners change by the same percentage. The Gini coefficient is calculated based on the household-dwelling units’ disposable money income per consumption unit.