SGI 2020 | Policy Performance | Economic Policies | Taxes

To what extent is the Gini coefficient reduced by taxes and transfers?

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Time series

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Values among 41 countries

Indicator metadata and score calculation

Definition:	Percentage reduction of the Gini coefficient by taxes and transfers
Year:	2018
Unit:	Percent
Direction:	High values translate into high scores
Source 1:	OECD Online Database
Data for:	AUS, CAN, CHL, ISR, JPN, KOR, MEX, NZL, TUR, USA
Exceptions:	CAN (2017), CHL (2017), JPN (2015), KOR (2017), MEX (2016), NZL (2015), TUR (2015), USA (2017)
Annotation:	OECD: Dataset: Income Distribution Database URL: https://stats.oecd.org/Index… extracted May 23rd, 2020
Source 2:	Eurostat
Data for:	AUT, BEL, BGR, HRV, CYP, CZE, DNK, EST, FIN, FRA, DEU, GRC, HUN, ISL, IRL, ITA, LVA, LTU, LUX, MLT, NLD, NOR, POL, PRT, ROU, SVK, SVN, ESP, SWE, CHE, GBR
Exceptions:	ISL (2016)
Annotation:	Eurostat: Dataset: For Gini at disposable income: Eurostat Online Database, Gini coefficient of equivalised disposable income - EU-SILC survey [ilc_di12], URL: https://appsso.eurostat.ec.e… extracted July 6th, 2020 For Gini before taxes and transfers: Custom dataset provided by Eurostat, obtained March 10th, 2020

Calculation:	Long-term data series were used to set appropriate minimum and maximum values.
Maximum:	62.44
Minimum:	12.36
/	Above/Below IQR boundary value. See FAQ for further information.
Distance:	Distance=(value for calculation-minimum)/(maximum-minimum)
Score:	Score=1+relative distance*9
Annotat.:	Indicator calculated by Margit Kraus (Calculus Consult)

Top group

Score

Redistribution Effect

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Upper middle group

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Slovenia

7.7

49.72

Norway

7.5

48.44

Finland

7.3

47.69

Slovakia

7.3

47.33

Czechia

7.3

47.21

Belgium

7.2

47.02

Sweden

7.2

46.85

Ireland

7.1

46.39

Austria

6.5

42.97

France

6.4

42.61

Hungary

6.4

42.23

Iceland

6.3

41.63

Denmark

6.3

41.61

Netherlands

6.1

40.93

Germany

6.1

40.72

Lower middle group

Portugal

5.9

39.83

Croatia

5.9

39.45

Malta

5.7

38.48

Cyprus

5.6

38.21

5.4

36.65

Poland

5.1

35.07

Estonia

5.0

34.81

Spain

5.0

34.71

Switzerland

4.8

33.59

Luxembourg

4.8

33.32

Greece

4.7

33.03

Japan

4.7

32.74

Romania

4.6

32.31

Italy

4.6

32.23

Lithuania

4.2

30.16

Canada

4.0

29.22

Latvia

4.0

29.20

Australia

3.9

28.41

Bulgaria

3.6

26.90

New Zealand

3.2

24.46

Bottom group

USA

2.9

22.77

Israel

2.7

21.62

South Korea

1.0

12.56

Chile

1.0

7.07

Turkey

1.0

5.83

Mexico

1.0

3.17

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To what extent is the Gini coefficient reduced by taxes and transfers?