What is the decile ratio? Back to list

Member SinceJul 08, 2021

Posts 201


Nov 25, 2021 a 12:36
The decile coefficient (also known as the coefficient of income differentiation) is an indicator of social statistics that shows the level of social stratification among the people of a particular state by showing how much 10% of the minimum income of wealthy people is greater than 10% of the income of the less wealthy. An income ratio of this kind can only approximate the stratification of society since it is impossible to accurately calculate this 10% for the entire country, and even their income can only be approximately and a larger part overall.

First you need to find the 1st decile - that is, the income of 10% of the less wealthy population and the 9th decile, which is the income level of 10% of the population with higher incomes. Decile ratio equals the ratio of the 9th decile to the 1st decile.

Member SinceJul 12, 2021

Posts 241


Nov 25, 2021 a 18:51
The decile ratio is a measure of inequality that shows what percentage of the income in an economy goes to the richest 10% of the people. It’s calculated by dividing the share of national income going to the richest 1% of households by the share going to the poorest 10%. When this ratio is greater than 10 or 20, inequality is increasing.

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