Palma Ratio
The Palma ratio measures income inequality as the ratio of the income share held by the richest 10 percent of the population to the share held by the poorest 40 percent. It rests on the empirical regularity, documented by Gabriel Palma, that the middle deciles (5 through 9) capture a remarkably stable half of national income across countries, so that inequality is essentially a contest between the top and the bottom — the 'tails' of the distribution.
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- Cobham, A., & Sumner, A. (2014). Is inequality all about the tails? The Palma measure of income inequality. Significance, 11(1), 10–13. · DOI 10.1111/j.1740-9713.2014.00718.x
- Palma, J. G. (2011). Homogeneous middles vs. heterogeneous tails, and the end of the 'inverted-U': it's all about the share of the rich. Development and Change, 42(1), 87–153. · DOI 10.1111/j.1467-7660.2011.01694.x
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