Don’t take international comparisons of income inequality at face value as different data used to derive figures: Experts

Don't take international comparisons of income inequality at face value, they caution

While some developed countries impose higher overall taxes on the working population to finance large social transfers, Singapore's approach is to keep the tax burden light and provide targeted support for people of lower income, which could account
While some developed countries impose higher overall taxes on the working population to finance large social transfers, Singapore's approach is to keep the tax burden light and provide targeted support for people of lower income, which could account for its higher Gini figure.ST FILE PHOTO

Singapore's efforts to address income inequality appear to be bearing fruit, but it still lags behind several developed countries on this front.

After factoring in taxes and transfers, and adjusting for different household sizes using a method called square root scale, Singapore's Gini coefficient was 0.352 last year.

Please or to continue reading the full article.

Get unlimited access to all stories at $0.99/month

  • Latest headlines and exclusive stories
  • In-depth analyses and award-winning multimedia content
  • Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*

*Terms and conditions apply.

A version of this article appeared in the print edition of The Straits Times on February 22, 2020, with the headline 'Govts use different data to compute Gini figures: Experts'. Subscribe