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Published: 18 December 2014
Income differentials grew in 2013
Statistics Finland's total statistics on income distribution show that income differentials grew in 2013 compared with the previous year. This was due to faster income growth among high-income groups than other groups. The average income of the highest-income decile grew in real terms by 2.6 per cent and that of the lowest-income decile by 0.3 per cent from 2012 to 2013. In the other income deciles, the income development was clearly weaker.
Change in average real income (%) by income decile from 2012 to 2013
Income decile: the population is arranged according to income and divided into ten equal parts, each of which has around half a million persons. Income decile I is the lowest-income decile and income decile X the highest-income decile. The changes are calculated from average values. Income concept: the household-dwelling unit's disposable money income per consumption unit.
The Gini coefficient describing relative income differentials was more or less at the same level as ten years ago. It went up by 0.4 percentage points from 2012 to 2013 and received the value 27.6. This was caused by an increase in realised capital gains received by the highest-income earners. Compared with 1995, the Gini coefficient has grown considerably, or by around 5.4 percentage points, most of which is caused by growing income differentials in the late 1990s. The income differentials were at their largest in 2007, compared to which the Gini coefficient for 2013 was 1.9 percentage points lower. The Gini coefficient gets the value 0 if everyone receives the same amount of income and 100 if one income earner receives all the income. The higher the Gini coefficient, the higher the income differentials are.
Development of income inequality 1995– 2013, Gini coefficient (%).
Persons belonging to the household-dwelling population, the household-dwelling unit's disposable money income per consumption unit.
Source: Total statistics on income distribution, Statistics Finland
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Updated 18.12.2014
Official Statistics of Finland (OSF):
Total statistics on income distribution [e-publication].
Income inequality 2013. Helsinki: Statistics Finland [referred: 21.11.2024].
Access method: http://www.stat.fi/til/tjkt/2013/02/tjkt_2013_02_2014-12-18_tie_002_en.html