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45126-Invest. Qual-No111

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<strong>Invest</strong>ment in <strong>Qual</strong>ityhigh does a Gini coefficient have to be (or how strong adeterioration has to be recorded in it) for it to be accepted asrequiring redress? The Finnish Economic Council, for example,believes that “as a rule, income differentials (measured by the Ginicoefficient) are considered small if the figure is below 25, and largeif it is over 30” (2002: 3). 20 The Gini coefficient for the distributionof disposable income in Finland was 20.7 in the mid-1980s and roseby 10 per cent to 22.8 in the mid-1990s, a rise largely due to aneconomic recession in that country in the early 1990s (Table 8.9). InIreland, by contrast, the Gini marginally improved over the sameperiod but that meant it came down to a level of 32.4 in 1994. Weknow that it increased again with the start of the economic boomand was 33.8 in 1998 (Table 2.10, Chapter 2).TABLE 8.9Inequality Indicators for the Entire Population, Selected EuropeanCountries, mid-1990sGini Coefficient Increase in Gini P90/P10 Decilemid 90s mid 80s – mid 90s Ratio mid 90sDenmark 21.7 -1.1 2.7Finland 22.8 2.1 2.8Sweden 23.0 1.4 2.7Netherlands 25.5 2.1 3.2Belgium 27.2 1.2 3.2Ireland 32.4 -0.6 4.2Source: Table 2.2, Förster (2000)The standards set by other small northern EU member states areexacting but the Council believes systematic comparison with themwill be beneficial. The benefits will include, not just higher livingstandards for that section of our population living on the lowestincomes, but a more cohesive society in which a wider and deeperacceptance of interdependence facilitates a greater social capacity to20. Finnish Economic Council (2002), Labour Market Exclusion, IncomeDistribution and Poverty. Prime Minister’s Office.430

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