From Will
Wilkinson:
The Gini coefficient is the generally-accepted standard measure of inequality,
and the dark-green bars show the amount of after-tax income inequality in 16
OECD countries (click on the chart for a bigger version). The difference between
the bars, shown in light green, is a measure of redistribution, basically: the
larger number is the amount of pre-tax income inequality.
As Wilkinson points out, the US has less income inequality, before taxes, than
the UK; it’s tied with both Germany and Australia. (Yes, Germany – but
remember it’s still not all that much time since West Germany absorbed East
Germany, large parts of which are still very depressed, and that skews things
a bit.)
For those of us who laud the Scandinavian model, the numbers for Sweden are
worth noting. Sweden is clearly successful in redistributing income, since its
after-tax Gini coefficient of 25 is much lower than the 37 seen in the US. But
interestingly it seems happy with a lot of before-tax inequality, since the
market-income Gini coefficient is a high 46.
(Via Cowen)
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