MONET 2030: Distribution of equivalised primary income (S80/S20)


SDG 10: Reduce inequality within and among countries

Excerpt from Swiss target 10.1: Switzerland promotes common welfare. It ensures the greatest possible equality of opportunity among citizens. […]

Significance of the indicator
The indicator shows the distribution of the equivalised primary income, i.e. the income before government transfers, e.g. taxes and social benefits. It shows the factor by which the percentage of income of the upper 20% of the population exceeds that of the lowest 20% of the population. The indicator shows the inequality of income in both the labour and capital market. The greater the indicator value, the greater the inequality in the distribution of primary income. To ensure equality of opportunity and equitable distribution, a reduction in the indicator is pursued for the benefit of sustainable development.

Help for interpretation
For 2012, the income share of the upper 20% of the population was 30 times greater than that of the lowest 20% of the population.

To illustrate the redistribution achieved by government transfers, the present indicator should be considered together with the indicator “distribution of equivalised disposable income” that is used to monitor the Swiss target 10.4.

International comparability
Quintile share ratio S80/S20 is an income distribution measure that is used internationally. Due to data availability, the indicator is not comparable at international level.


Tables

Methodology

The indicator shows the quintile share ratio S80/S20 of the equivalised primary income. The income before government transfers is considered as primary income.

The quintile share ratio S80/S20 compares in a given population the share of the income of the richest 20% with that of the income of the poorest 20%. The further the quotient deviates from 1, the greater the inequality of the spread of income between these population groups.

State or state-regulated pensions, social benefits and regular transfers from other households are considered as social transfers/income. State or state-regulated expenditure such as social insurance contributions, taxes,  basic health insurance premiums and regular financial support to other households are considered as transfer expenditure.

The data come from the Federal Statistical Office’s Household Budget Survey (HBS) that records detailed information on household incomes and consumption.

Sources

Targets

Excerpt from Swiss target 10.1: Switzerland promotes common welfare. It ensures the greatest possible equality of opportunity among citizens. […]

International target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.

Contact

Federal Statistical Office Section Environment, Sustainable Development, Territory
Espace de l'Europe 10
CH-2010 Neuchâtel
Switzerland

Contact

Remark

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