Mar 18, 2013

Half the employee population share 10% of the total wage

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.
  1. About half the employees share only 10% of the total wages.
  2. Three quarters of the employees share one quarter of the total wages.
  3. The bottom 20% make only 2% of the total wages. 
  4. The top 20% make 70% of the total wages. 
  5. 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
The bottom 20% will have to share this pie among 35 persons. Less than a strawberry each.


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


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.
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. 

No comments:

Post a Comment