Scotland

Income inequalities

Key points

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Graph 1: Changes in real income (percentages)

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Graph 2: Changes in real income (shares)

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Graph 3: Total income (over time)

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Graph 4: Total income (shares)

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Graph 5: Compared to Great Britain

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Graph 6: Composition by income level

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Definitions and data sources

The first two graphs focus on the change in real net incomes by income decile whilst the third and fourth graphs focus on the share of total incomes by income decile.

The first graph shows the average percentage change in real (i.e. after adjusting for inflation) net incomes for each income decile over the period 1997/98 to 2007/08.

The second graph shows the shares of the total change in real net incomes since 1997/98 by income decile.

The third graph shows the share of the total net income of the population for selected income deciles (tenths), namely the two poorest deciles and the two richest deciles.  Clearly, the shares added up for all ten deciles would total 100% of the total income.

The fourth graph shows, for the latest year, the distribution of total net income across the ten income deciles.

The fifth graph shows the income of households at the 10th and 90th percentiles of the net income distribution as proportions of average (median) Scottish income.  For comparison purposes, the equivalent figures for Great Britain as a whole are also presented.

The sixth graph shows how composition of the population varies by household net income decile.  For each of the ten deciles, the shares of the population are shown separately for children, working-age adults and adults of pensionable age, with the data for children and working-age adults further divided into those where no one in the family works and those where at least one of the adults in the family works.  To improve its statistical reliability, the data is the average for the latest three years.

The data source for all the graphs is Households Below Average Income, based on the Family Resources Survey (FRS).  Income is disposable household income after deducting housing costs, equivalised (adjusted) for household size and composition.  The self-employed are included in the statistics.

Overall adequacy of the indicator: medium.  The FRS is a well-established annual government survey, designed to be representative of the population as a whole, but the sample sizes in the first graph are relatively small and the coverage of the surveys prior to 2001/2 did not extend beyond the Caledonian Canal.

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External links

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