Based on the degree of inequality in income distribution measured by the Gini coefficient, Colombia was the most unequal country in Latin America as of 2022. Colombia's Gini coefficient amounted to 54.8. The Dominican Republic recorded the lowest Gini coefficient at 37, even below Uruguay and Chile, which are some of the countries with the highest human development indexes in Latin America. The Gini coefficient explained The Gini coefficient measures the deviation of the distribution of income among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality. This measurement reflects the degree of wealth inequality at a certain moment in time, though it may fail to capture how average levels of income improve or worsen over time. What affects the Gini coefficient in Latin America? Latin America, as other developing regions in the world, generally records high rates of inequality, with a Gini coefficient ranging between 37 and 55 points according to the latest available data from the reporting period 2010-2023. According to the Human Development Report, wealth redistribution by means of tax transfers improves Latin America's Gini coefficient to a lesser degree than it does in advanced economies. Wider access to education and health services, on the other hand, have been proven to have a greater direct effect in improving Gini coefficient measurements in the region.

Brazil is one of the most unequal countries in terms of income in Latin America. In 2022, it was estimated that almost 57 percent of the income generated in Brazil was held by the richest 20 percent of its population. Among the Latin American countries with available data included in this graph, Colombia came in first, as the wealthiest 20 percent of the Colombian population held over 59 percent of the country's total income.

In 2023, the Middle East and North Africa, and Latin America were the regions with the lowest level of distribution of wealth worldwide, with the richest ten percent holding around ** percent of the total wealth. On the other hand, in Europe, the richest ten percent held around ** percent of the wealth. East and South Asia were the regions where the poorest half of the population held the highest share of the wealth, but still only around **** percent, underlining the high levels of wealth inequalities worldwide.

In 2022, less than eight percent of the population in Latin America had either a high or upper-middle income level. Slightly over a fifth of the population fell in the non-poor with low incomes' stratum.

Amongst the selected Latin American countries, Mexico registered the largest average wealth of billionaires, at 8.97 billion U.S dollars in 2020. By contrast, the rest of the adult population had an average wealth of 41,530 dollars. This represented a wealth ratio of billionaires/general population of 216,079:1. Nevertheless, it was Argentina the nation with the largest inequality in the distribution of wealth. Billionaires' wealth in this South American country was equal to 3.7 percent of the national GDP.

In 2022, about 40 percent of adults in Mexico held a net worth under 10,000 U.S. dollars. In contrast, merely 393,000 Mexicans (that is, 0.4 percent of the total) had a net worth of over one million U.S. dollars. Mexico is one of the most unequal countries in Latin America regarding wealth distribution, with 78.7 percent of the national wealth held by the richest ten percent of the population.

The minimum salaryThe minimum wage per day guaranteed by law in Mexico was decreed to increase by 22 percent between 2021 and 2022, reaching 172.87 Mexican pesos in 2022. In the Free Zone located near the northern border the minimum daily wage was raised to 260.34 Mexican pesos.This represented the fourth consecutive incrase since 2019, but could prove to be insufficient to maintain the wellbeing of Mexican workers after the soaring inflation rate registered in 2022 and the economic impact of the COVID-19 in Mexican households. The legal minimum salary has a long history in the North American country, it was first implemented with the approval of the Political Constitution of the United Mexican States in 1917. Income inequality in Latin AmericaLatin America, as other developing regions in the world, generally records high rates of inequality, with a Gini coefficient ranging between 38 and 54 among the region’s countries. Moreover, many of the countries with the biggest inequality in income distribution worldwide are found in Latin America. According to the Human Development Report 2019, wealth redistribution by means of tax transfers improves Latin America's Gini coefficient to a lesser degree than it does in advanced economies. Wider access to education and health services, on the other hand, have been proven to have a greater direct effect in improving Gini coefficient measurements in the region.

Uruguay and Chile were the Latin American countries with the highest wealth per adult. In 2021, an Uruguayan adult had, on average, 57,726 U.S. dollars worth of financial and non-financial assets, whereas Chileans' mean wealth stood at 54,639 dollars per adult. Argentina was the country with the lowest average wealth in the region, at only 10,446 dollars per adult.

In 2023, according to the Gini coefficient, household income distribution in the United States was 0.47. This figure was at 0.43 in 1990, which indicates an increase in income inequality in the U.S. over the past 30 years. What is the Gini coefficient? The Gini coefficient, or Gini index, is a statistical measure of economic inequality and wealth distribution among a population. A value of zero represents perfect economic equality, and a value of one represents perfect economic inequality. The Gini coefficient helps to visualize income inequality in a more digestible way. For example, according to the Gini coefficient, the District of Columbia and the state of New York have the greatest amount of income inequality in the U.S. with a score of 0.51, and Utah has the greatest income equality with a score of 0.43. The Gini coefficient around the world The Gini coefficient is also an effective measure to help picture income inequality around the world. For example, in 2018 income inequality was highest in South Africa, while income inequality was lowest in Slovenia.

Between 2010 and 2022, El Salvador's data on the degree of inequality in wealth distribution based on the Gini coefficient reached 38.8. El Salvador's was deemed as the most equal country in Latin America when it comes to income distribution.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

Between 2010 and 2022, Colombia's data on the degree of inequality in wealth distribution based on the Gini coefficient reached 51.5. That year, the country was deemed as one of the most unequal countries in Latin America.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

In 2021, the wealth share of the top ten percent in Argentina stood at 58.2 percent. Meanwhile, the average personal wealth of the top one percent totaled 25.7 percent of the national wealth. That year, the top ten percent in this South American country had an average wealth of 180,300 euros.

In 2024, two of the three richest people in Latin America were Mexicans. The leader of the rank was the Mexican business magnate Carlos Slim, the 14th richest person in the world. Slim had a fortune of 102 billion U.S. dollars, derived from his multiple businesses and investments. At third place was a fellow Mexican businessman, German Larrea, with a fortune of nearly 27.3 billion dollars.

Billionaires' wealth distribution Within each country's economy, there exists a relatively small segment of wealthier individuals who contribute significantly to the Gross Domestic Product (GDP) of their respective countries. In Latin America, Chile stands out for its high concentration of wealth among billionaires, accounting for approximately 16 percent of the GDP. Mexico also exhibits a notable wealth concentration, with billionaires contributing around 12 percent of the country's GDP. Regarding the financial magnitude of these billionaires in Latin America, Mexico leads with an average individual wealth of approximately nine billion dollars, compared to an average wealth per adult of 43,140.
Income inequality In most countries within the region, the GINI Index, which measures income inequality among the population, falls within the range of 40 to 50. Notably, Colombia has the highest level of income inequality in Latin America, at 54.2. As a result of this income inequality, only around 2.8 percent of the population in the region is classified as having a high economic status, while the largest portion of the population consists of non-poor individuals with low incomes, and approximately 281 million people in the region live below the poverty line.

Between 2010 and 2022, Chile's data on the degree of inequality in income distribution based on the Gini coefficient reached 44.9. Although having one of the highest human development indexes in Latin America, Chile's Gini coefficient was still higher than countries like Haiti and El Salvador. Nevertheless, income distribution in this South American country has shown signs of improvement, with the Gini coefficient decreasing in recent periods.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

Between 2010 and 2023, Brazil's data on the degree of inequality in wealth distribution based on the Gini coefficient reached 52. That year, Brazil was deemed one of the most unequal country in Latin America. Prior to 2010, wealth distribution in Brazil had shown signs of improvement, with the Gini coefficient decreasing in the previous 3 reporting periods. The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

South Africa had the highest inequality in income distribution in 2024, with a Gini score of **. Its South African neighbor, Namibia, followed in second. The Gini coefficient measures the deviation of income (or consumption) distribution among individuals or households within a country from a perfectly equal distribution. A value of 0 represents absolute equality, and a value of 100 represents absolute inequality. All the 20 most unequal countries in the world were either located in Africa or Latin America & The Caribbean.

In 2023, an estimate of 27.8 million Colombian adults had a net worth of less than 10 thousand U.S. dollars. In contrast, the total net assets of approximately 38 thousand people above 18 years old in the South American country surpassed one million dollars. Colombia is among the most unequal countries in Latin America.

Guatemala's data on the degree of inequality in income distribution based on the Gini coefficient reached 48.3 between 2010 and 2022, the same amount of the previous period. That year, the country was deemed as one of the most unequal countries in Latin America.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

Between 2010 and 2022, Argentina's data on the degree of income in wealth distribution based on the Gini coefficient reached 42. Compared to the previous reported period, this coefficient improved slightly. During that period, Argentina was deemed as one of the most equal countries in Latin America.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

Between 2010 and 2022, Panama's data on the degree of inequality in income distribution based on the Gini coefficient totaled 50.9. This coefficient represents a deterioration compared to last year. Panama was deemed as the third most unequal country in Latin America.

The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households in a given country from a perfectly equal distribution. A value of 0 represents absolute equality, whereas 100 would be the highest possible degree of inequality.

This statistic shows the inequality of income distribution in China from 2005 to 2023 based on the Gini Index. In 2023, China reached a score of ************ points. The Gini Index is a statistical measure that is used to represent unequal distributions, e.g. income distribution. It can take any value between 1 and 100 points (or 0 and 1). The closer the value is to 100 the greater is the inequality. 40 or 0.4 is the warning level set by the United Nations. The Gini Index for South Korea had ranged at about **** in 2022. Income distribution in China The Gini coefficient is used to measure the income inequality of a country. The United States, the World Bank, the US Central Intelligence Agency, and the Organization for Economic Co-operation and Development all provide their own measurement of the Gini coefficient, varying in data collection and survey methods. According to the United Nations Development Programme, countries with the largest income inequality based on the Gini index are mainly located in Africa and Latin America, with South Africa displaying the world's highest value in 2022. The world's most equal countries, on the contrary, are situated mostly in Europe. The United States' Gini for household income has increased by around ten percent since 1990, to **** in 2023. Development of inequality in China Growing inequality counts as one of the biggest social, economic, and political challenges to many countries, especially emerging markets. Over the last 20 years, China has become one of the world's largest economies. As parts of the society have become more and more affluent, the country's Gini coefficient has also grown sharply over the last decades. As shown by the graph at hand, China's Gini coefficient ranged at a level higher than the warning line for increasing risk of social unrest over the last decade. However, the situation has slightly improved since 2008, when the Gini coefficient had reached the highest value of recent times.