The Palma Ratio: Concentrating Wealth

The Palma ratio, by contrasting the income of the wealthiest 10% against that of the poorest 40%, offers a revealing glimpse into the concentration of wealth among the upper echelons of society. This metric illuminates the stark wealth polarization, providing a focused lens through which to view the pronounced disparities in income distribution. It underscores the significant economic divide, drawing attention to the disparities that exist between the most affluent members of society and those in the lowest economic strata. In doing so, the Palma ratio serves as a critical tool for understanding the depth and breadth of income inequality, aiding policymakers and analysts in crafting more equitable economic policies.Source: Our World in Data (2023) Income inequality: Palma ratio, Hrsg. Oxford Martin School: https://ourworldindata.org/grapher/palma-ratio-s90s40-ratio?time=latest [15.03.24]