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Income disparity (NC)

Description

Income inequality described with P90 / P10 and the Gini coefficient. Annual figures.

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Two measures are available. Use the Measure button to select:
1. P90/P10
2. Gini coefficient

P90 / P10 is the ratio between the income of the person who is in the 90th percentile and the one who is on the 10th percentile. So this is the income of the person having the 90 % highest income in the population compared to the one that has the 10 % lowest income. If we sort 100 people by ascending income, the P90 / P10 is the ratio between the income of person number 90 (the tenth highest) and person number 10 (the tenth lowest).

The Gini coefficient describes income inequality ranging from 0 to 1. The larger the coefficient, the greater the income inequality. It is based on the relationship between the cumulative proportions of the population ranked by increasing income and the cumulative proportion of income that they receive.

Rationale for indicator
Income and economy are fundamental determinants of health. Equality in the distribution of economic resources presumably affects other social factors positively. One might assume that great economic inequality in a society may lead to increased crime, cultural differences and political conflicts between different social groups.

Greater income inequality may be an indication that there are also major social inequalities in health. Over the last 30 years, all income groups in the country have better health, but the health gains have been greatest for people with higher education and high income. For instance, this group has a higher life expectancy than people with less education and lower income. In the last ten years in particular, health differences have increased, in terms of both physical and mental health, both for children and adults. Reducing social inequalities in health is an important goal of public health work.

Source: NOU 2009: 10. Fordelingsutvalget: Finansdepartementet 2009. ISBN 978-82-583-1016-4
Source
Statistics Norway (SSB)
Collection
Income information is obtained by connecting the various administrative and statistical data sources for the whole population as of 31st December in the fiscal year. Subsequently, the P90 / P10 and the Gini coefficients are calculated.
Interpretation and sources of error
The Gini coefficient responds to changes in all sectors of the population, but it is strongly affected by extreme values, such as if a few people have very high income in a county. P90 / P10 is not affected by extreme values, and therefore does not capture changes in the top or bottom of the distribution.

Information in the taxation records may contain errors from the submission of tax returns from individual taxpayers. Some of these errors are detected and corrected by the tax offices, but errors that do not have practical significance for the tax assessment are often not addressed by the tax offices. This can lead to distortions in the material. In particular, small amounts that are below tax-free limits can easily be left even if they are not completed correctly.

Some errors during the collection and processing of data are inevitable. There may be coding errors, audit mistakes, errors in IT processing etc. Extensive work has been done to minimize these errors, and Statistics Norway considers these errors to be relatively insignificant.
When numbers are missing
Counties may in some cases be lacking due to mergers.
Time periods
2009 - 2017
Geographical level
Norway and counties
Frequency of updates
Annually
Last updated
2/12/19
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