Start alongside the OECD numbers. The OECD uses the Gini coefficient to mensurate income inequality across high income. For an before post alongside an intuitive explanation together with Definition of the Gini coefficients, run across here. For acquaint purposes, it suffices to say that a Gini coefficient is a agency of criterion inequality that theoretically tin dismiss attain from a marking of null for perfect equality, where everyone has just the same income, to a marking of i for a province of affairs of consummate inequality, where i someone receives all the income.
Here's a compilation of Gini coefficients from OECD data alongside the USA inwards the hand row, followed past times Canada, France, Germany, Italy, Japan, Sweden, together with the United Kingdom. The OECD information for the minute column is here, together with information for the other columns is available past times toggling the "Income together with population measures" box at the top. All information is for the latest twelvemonth available. (Thanks to Danlu Hu for putting together the table.)
As noted above, the U.S. has the highest Gini coefficient of these 8 comparing countries if measured afterwards taxes together with transfers (second column), just non if measured before taxes together with transfers (first column). However, a hint equally to why this arises tin dismiss last flora inwards the concluding 4 columns, which suspension downward the Gini coefficients past times the working historic current population together with the over-65 population.
When it comes to the working historic current population, before taxes together with transfers, the U.S. degree of inequality is third-highest, just virtually tied for showtime alongside the United Kingdom of Great Britain together with Northern Ireland of Britain together with Northern Republic of Ireland together with Italy. After taxes together with transfers, the U.S. degree of inequality amid the working historic current population clearly the highest.
When it comes to the over-65 population, before taxes together with transfers, the U.S. has a far to a greater extent than equal distribution of income than France, Germany, together with Italy. I haven't dug downward into the information here, just I suspect that these numbers are reflecting that a much larger percentage of over-65 workers are silent inwards the project forcefulness inwards the U.S. economy--which makes the distribution to a greater extent than equal before taxes together with transfers.
Taxes together with transfers brand the over-65 distribution of income far to a greater extent than equal inwards all 8 countries, just the U.S. stands out equally past times far the to the lowest degree equal, followed past times Japan, alongside both good behind the other vi countries.
These patterns are consistent alongside a finding from an OECD study published concluding autumn called Divided We Stand: Why Inequality Keeps Rising. I blogged almost it on Dec 16, 2012, inwards "Government Redistribution : International Comparisons." One topic of the study is that the extent of regime redistribution across populations is driven much to a greater extent than past times the widespread provision of regime benefits than past times the progressivity of taxation. As the OECD study stated: "Benefits had a much stronger ship upon on inequality than the other principal instruments of cash distribution -- social contributions or taxes. ... The most of import benefit-related determining element inwards overall distribution, however, was non exercise goodness levels just the issue of people entitled to transfers."