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Some of the world’s most developed countries, such as the US and the UK, fair poorly when you look at the rich-poor divide.
To measure the income inequality, The World Bank uses an index called as Gini. Investopedia describes Gini index as ‘a measurement of the income distribution of a country's residents. This number, which ranges between 0 and 1 helps define the gap between the rich and the poor, with 0 representing perfect equality and 1 representing perfect inequality’.
Let’s take a look at the countries with the widest gap between the rich and poor.
Source: 24/7 Wall St.
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Japan
Rank: 10
Gini index - post tax & transfer: 0.336
Social spending, percentage of GDP: NA
Job growth (2013): 0.7 per cent (16th lowest)
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Greece
Rank: 9
Gini index - post tax & transfer: 0.337
Social spending, percentage of GDP: 22.0 per cent (17th highest)
Job growth (2013): -4.0 per cent (the lowest)
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Spain
Rank: 8
Gini index - post tax & transfer: 0.338
Social spending, percentage of GDP: 27.4 per cent (8th highest)
Job growth (2013): -3.1 per cent (2nd lowest)
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United Kingdom
Rank: 7
Gini index - post tax & transfer: 0.341
Social spending, percentage of GDP: 23.8 per cent (13th highest)
Job growth (2013): 1.3 per cent (8th highest)
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Portugal
Rank: 6
Gini index - post tax & transfer: 0.344
Social spending, percentage of GDP: 26.4 per cent (9th highest)
Job growth (2013): -2.6 per cent (3rd lowest)
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Israel
Rank: 5
Gini index - post tax & transfer: 0.376
Social spending, percentage of GDP: 15.8 per cent (4th lowest)
Job growth (2013): 2.7 per cent (2nd highest)
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United States
Rank: 4
Gini index - post tax & transfer: 0.380
Social spending, percentage of GDP: 20.0 per cent (11th lowest)
Job growth (2013): 1.0 per cent (14th highest)
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Turkey
Rank: 3
Gini index - post tax & transfer: 0.411
Social spending, percentage of GDP: n/a
Job growth (2013): n/a
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Mexico
Rank: 2
Gini index - post tax & transfer: 0.466
Social spending, percentage of GDP: 7.4 per cent (the lowest)
Job growth (2013): 1.1 per cent (11th highest)
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Chile
Rank: 1
Gini index - post tax & transfer: 0.501
Social spending, percentage of GDP: 10.2 per cent (3rd lowest)
Job growth (2013): n/a