The ratio of the top 20 percents' income to that of the bottom 20 percent of earners is a common way to measure income inequality. In the European Union, this ratio was 9.74 before taxes and 7.76 after taxes in 2023.
Many European countries are known for their progressive taxation systems and strong social benefits, meaning that post-taxes and social transfers, their income inequality is much lower than what it is in gross terms. This is particularly the case for countries such as Germany, which has the fourth-highest gross income inequality between its highest earners and lowest earners, but has the ninth-highest inequality ratio when taxes and transfers are factored in. The country with the smallest disparity between high and low earners in Europe was Czechia in 2023, with a gross ratio of 5.09 and a net ratio of 4.45
Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023
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Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023
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The income quantile share ratio or the S80/S20 ratio is a measure of the inequality of income distribution. It is calculated as the ratio of total income received by the 20 percent of the population with the highest income (the top quantile) to that received by the 20 percent of the population with the lowest income (the bottom quantile).
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Eurostat. (March 6, 2025). Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023 [Graph]. In Statista. Retrieved April 10, 2025, from https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/
Eurostat. "Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023." Chart. March 6, 2025. Statista. Accessed April 10, 2025. https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/
Eurostat. (2025). Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023. Statista. Statista Inc.. Accessed: April 10, 2025. https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/
Eurostat. "Ratio of The Gross and Net Income of The Top 20 Percent of Earners Compared to The Bottom 20 Percent of Earners in European Countries in 2023." Statista, Statista Inc., 6 Mar 2025, https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/
Eurostat, Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023 Statista, https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/ (last visited April 10, 2025)
Ratio of the gross and net income of the top 20 percent of earners compared to the bottom 20 percent of earners in European countries in 2023 [Graph], Eurostat, March 6, 2025. [Online]. Available: https://www.statista.com/statistics/1449283/income-quintile-share-ratio-gross-net-s80-s20/
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