The country’s income differences were at their lowest in the mid-1980s, when the coefficient was 20.3 percent in 1987. They grew rapidly, especially in the second half of the 1990s, when the coefficient rose from 22.2 percent in 1995 to 28.4. in 2000.
However, the differences in the global comparison are moderate.
The Gini coefficient is one of the most commonly used measures of relative income inequality in the world. A reading of 100 represents perfect income inequality and a value of 0 represents perfect equality.
According to Statistics Finland, income differences in euro terms have also grown significantly in Finland since 1995. The average annual income in the lowest income decile was 11,703 euros last year, which is 6.6 times lower than the average of 77,400 euros in the top decile. While the average of the lowest decile has increased by 31 percent since the mid-1990s, the average of the top decile has increased by 103 percent.
According to Statistics Finland, 719,000 low-income people lived in Finland in 2021, which is 13.2 percent of the population. In 2020, the share of low-income people was 12.5 percent.
Low income is defined as people whose net income is less than 60 percent of the median income of the population. The threshold was 1,350 euros per month, or 16,250 euros per year in a one-person household in 2021.
Aleksi Teivainen – HT
Source: The Nordic Page