Singapore Has The Highest Income Inequality Compared to the OECD Countries | The Heart Truths (Feb 2013)
The above blog uses the Singapore government statistics on Gini coefficient calculated on per household member income, which works out to 0.478 for 2012.
But at the average household member level, many sharp distinctions get ironed off. For example, a man earning $20,000, with a five-member household, will show an income of $4,000 per household member. Another single man earning $4,000 living alone will show the same income per household member.
How does the Gini coefficient look like if we consider individual employee wages?
From the calculations below, we see a very unequal picture.
Suppose the top 20% has this yummy strawberry pie for each person.
The bottom 20% will have to share this pie among 35 persons. Less than a strawberry each.
Calculations
Sources:
CPF report of employee wages
Asiaone Mar 2013: wage share of GDP is about 42%
GDP for 2011 is $326 billion. Total wages estimated at 42% of GDP= $136.9 billion.
Estimated wage is the middle of the range in column 1. For the last row, it is the remainder amount from total wages.
The cumulative percentages are below.
In groups of 20%, the rounded numbers are:
These are based only on wages. Other incomes such as dividend, savings interest and rental income are not included.
The above blog uses the Singapore government statistics on Gini coefficient calculated on per household member income, which works out to 0.478 for 2012.
But at the average household member level, many sharp distinctions get ironed off. For example, a man earning $20,000, with a five-member household, will show an income of $4,000 per household member. Another single man earning $4,000 living alone will show the same income per household member.
How does the Gini coefficient look like if we consider individual employee wages?
From the calculations below, we see a very unequal picture.
- About half the employees share only 10% of the total wages.
- Three quarters of the employees share one quarter of the total wages.
- The bottom 20% make only 2% of the total wages.
- The top 20% make 70% of the total wages.
- The Gini coefficient based on the wage table is estimated at 0.57.
Suppose the top 20% has this yummy strawberry pie for each person.
from scienceblog.com |
Calculations
Monthly
wage 2011
|
Number
|
Estimated
Wage
|
Number*
est. wage
*12mth
($million)
|
%employee
|
%total
wages
|
TOTAL
|
1,735,422
|
136,920
|
|||
Below $400
|
79,916
|
400
|
383.6
|
4.60
|
0.28
|
$ 400 – $ 799
|
105,917
|
600
|
762.6
|
6.10
|
0.56
|
$ 800 – $ 999
|
108,531
|
850
|
1107.0
|
6.25
|
0.81
|
$1,000 – $1,499
|
164,253
|
1250
|
2463.8
|
9.46
|
1.80
|
$1,500 – $1,999
|
177,511
|
1750
|
3727.7
|
10.23
|
2.72
|
$2,000 – $2,999
|
333,420
|
2500
|
10002.6
|
19.21
|
7.31
|
$3,000 – $4,499
|
328,079
|
3750
|
14763.6
|
18.90
|
10.78
|
$4,500 – $4,999
|
65,597
|
4750
|
3739.0
|
3.78
|
2.73
|
subtotal of above
|
1,363,224
|
36949.9
|
78.55
|
26.99
|
|
$5,000 and Above
|
371,870
|
22402
|
99970.1
|
21.43
|
73.01
|
CPF report of employee wages
Asiaone Mar 2013: wage share of GDP is about 42%
GDP for 2011 is $326 billion. Total wages estimated at 42% of GDP= $136.9 billion.
Estimated wage is the middle of the range in column 1. For the last row, it is the remainder amount from total wages.
The cumulative percentages are below.
Monthly wage 2011
|
Cumulative
|
Cumulative
|
TOTAL
|
%employee
|
%total wage
|
Below $400
|
4.60
|
0.28
|
$ 400 –
$ 799
|
10.71
|
0.84
|
$ 800 –
$ 999
|
16.96
|
1.65
|
$1,000 – $1,499
|
26.43
|
3.45
|
$1,500 – $1,999
|
36.66
|
6.17
|
$2,000 – $2,999
|
55.87
|
13.47
|
$3,000 – $4,499
|
74.77
|
24.26
|
$4,500 – $4,999
|
78.55
|
26.99
|
$5,000 and Above
|
100
|
100
|
In groups of 20%, the rounded numbers are:
%employee
|
%wage
|
20
|
2
|
40
|
7
|
60
|
16
|
80
|
27
|
100
|
100.00
|
These are based only on wages. Other incomes such as dividend, savings interest and rental income are not included.
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