Conclusion
This analysis would not be possible without the fine grained data provided by the World Inequality Database (WID). Its
percentile based breakdowns allow us to look beyond national averages and uncover how income and wealth are distributed
across different segments of society. While the World Bank offers valuable indicators such as GDP, population, and broader
economic measures, these tend to reflect general trends and cannot capture inequality with the same level of precision.
The indicators presented here are based on annual post-tax income, providing a view of how earnings are distributed after
taxes and transfers. While this offers a meaningful picture of inequality in disposable income, it is important to note
that wealth inequality which reflects the distribution of accumulated assets such as property, investments, and capital
is typically far more extreme. If the same analysis were based on wealth data, the concentration at the top would appear
significantly greater, revealing an even sharper divide between those who hold assets and those who rely solely on income.
The Gini coefficient remains a widely used benchmark for summarising inequality into a single figure, but it has important
limitations. By design, it smooths over the extremes, failing to show how much the very richest capture compared to the
median, or how deep poverty may be at the lower end. This is precisely where WID data is so powerful, it makes visible
the disproportionate growth in the top percentiles, and highlights how inequality can rise even when the Gini index
appears relatively stable.
As the WID team often stresses, inequality is not inevitable, it is shaped by political choices, economic structures,
and policy decisions. Over the last four decades, many countries have seen widening gaps as top incomes grow far faster
than those of the median or bottom. Understanding these dynamics is essential for informed debate on taxation,
redistribution, and access to public goods. By combining granular WID data with broader World Bank indicators, we gain
a more complete picture of how societies evolve, and the role that inequality plays in shaping both prosperity and
social cohesion.