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Income distribution

How is the income distribution in Denmark? A number of indicators are presented here to show how evenly or unevenly disposable income is distributed across population. Income levels vary between the socio-economic strata of society, but also over the span of a lifetime, e.g. students typically have a low income and later move towards higher incomes.

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Measures of inequality. With a single number it states the degree of inequality in an income distribution. The Gini coefficient is a number between 0 and 100. The closer Gini is to 0, the more equal the income distribution.

In income statistics, the population is often divided into 10 equally sized groups according to their income. The lowest 10 percent of income earners are typically in the 1st decile, and the highest income are found in the 10th decile. The decile thresholds are the 9 amounts that separate the 10 groups, so exactly 10 percent of the population has an income amount below the first decile threshold.

Poverty measured in relation to the general standard of living in society. Statistics Denmark's indicator for relative poverty combines low income, i.e. persons in families with an equivalent disposable income of less than 50 percent of the median income, with low wealth, excluding students living away from home, persons with no income at all, and young people who have moved from non-relative poor households during the year from the group of relative poor.

The amount of money that a person or household has available for spending and saving after income taxes and interest expenses have been accounted for.

The amount where half of the population has a lower income and half of the population has a higher income.

Selected statistics on Income distribution

This page shows selected popular statistics on the subject of Income distribution. In Statbank Denmark, you can find more data and compile your own statistics.

Development in the Gini coefficient

Here you can see the development in the Gini coefficient over time. If everyone in a society had the same income, the Gini coefficient would be 0 - if one person had all the income, it would be 100. The Gini coefficient is independent of the level of income.

Development in the P90/10 rate

The P90/10 rate is a income distribution measure that is not affected by individuals with extreme incomes and, in this way, it is a better indicator of inequality between social classes in a broad sense. It is calculated as the top decile bound divided by the bottom decile bound.

Income by deciles

A decile consists of exactly one tenth of the population. The first decile is the 10 per cent of the population with the lowest income. The tenth decile is the 10 per cent of the population with the highest income. Income is based on equivalised disposable income adjusted for the economies of scale that exist when several people live together.

Development in relative poverty

Here you can see the development in relative poverty. Relative poverty is calculated as people in families with an equivalised disposable income under 50 per cent of the median income and a low net wealth (excl. pensions). The figures are exclusive of families in which the main provider is a student. 

Relative poverty disaggregated by age

Here you can see relative poverty for different age groups. Relative poverty is calculated as persons in families with an equivalised disposable income under 50 per cent of the median income and a low net wealth (excl. pensions). The figures are exclusive of families in which the main provider is a student. 

On the statistics – documentation, sources and method

Gain an overview of the purpose, contents and quality of the statistics. Learn about the data sources of the statistics, the contents of the statistics and how often they are published.

See the documentation of statistics to learn more:

Need more data on Income distribution?

You can go on searching on your own in Statbank Denmark. Find more detailed figures, e.g. the S80/20 rate, the maximum equalisation percentage, people in low income families, etc.

Contact

Uwe Pedersen
Phone: +45 23 72 65 69