Has the Wage Gap in Singapore Really Been Closing?
This article originally appeared on ValuePenguin There have been many reports of the narrowing wage gap in Singapore. For instance, Singapore’s Gini coefficient, the most commonly used indicator of income inequality, has reached 0.458 in 2016, its lowest level in a decade (it was -2.6% lower than its level of 0.470 in 2006). Gini coefficient after accounting for government transfers and taxes shows an even more dramatic decline in wage inequality, with figures declining from 0.418 in 2006 to 0.402 in 2016. Many people, however, many not feel its effect in their daily lives, and there might be a reason why. As always, the devil is in the detail. Income Gap Has Actually Widened Since 2000 Although Singapore’s wage gap may have declined somewhat since 2006, data shows that it has actually widened quite meaningfully since 2000. For instance, the top 10% of households in Singapore made S$15,946 per month in 2000, roughly 11.54x of S$1,382 of bottom 10% households in the country. By 2016, however, the top 10% made S$30,175 per month, which is 15.81x of S$1,909 that the bottom 10% made. All in all, the top 10%’s income grew by 89% since 2000, while the bottom 10%’s wage grew by
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