Monday - 26 March 2012
Income distribution more equal than in previous years
The distribution of income in Iceland was more equal in 2011 than it has been since the survey of income and living conditions started in 2004. The difference between income groups has decreased considerably since 2009. The highest income quintile was 3.3 times the income of the lowest quintile in 2011 compared to 4,2 in 2009. The Gini index, another indicator of income distribution, was 23.6. It peaked in 2009 when it was 29.6.
Real equivalized disposable income in 2010, CPI, shows that the purchasing power of disposable income for 2011 was similar to what it was in 2004 in relation to all income groups. Purchasing power incresed in the years 2004 to 2009, more for the highest income group than for other income groups. In the years 2010 and 2011 the purchasing power decreased for all income groups, again more for the highest income group.
Notes: The amounts in the figure are all in 2010 year‘s prices, CPI.
In the year 2011, 13.6% of the population was at risk of poverty or social exclusion. The indicator represents one of the key goals of the European Union for the year 2020 in order to decrease poverty and social exclusion. In 2010 Iceland had the lowest rate among the European countries. The index is based on three factors: income, work intensity of the household and the access of the household to material goods. The at-risk-of-poverty rate was 9.2% and has never been lower for Iceland.
Statistics Iceland has published an issue in the Statistical Series about risk of poverty and income distribution in 2011. More details on the results can be found in the Statisical Series.