Statistics Iceland has published statistics on risk of poverty and income distribution in 2003–2005. The results are based on the survey of income and living conditions, a coordinated European survey, carried out within the framework of EU-SILC.

In the years 2003–2005 10% of the population living in private households was at risk of poverty according to the EU-SILC definition. The at-risk-of-poverty threshold, set at 60% of median equivalised income, was 111,333 ISK for persons living alone in 2005 and 233,800 ISK for two adults with two children.

In 2005, women 16–24 years old were at the greatest risk of poverty, just over 14%. People 50–64 years were at the lowest risk, just over 4%.

A higher percentage of persons living alone or alone with children were at risk of poverty than persons living in other types of households. The same applies to persons living in rented accommodations compared to home owners.

In 2005, the income quintile share ratio shows that persons in the top income quintile had 3.7 times the equivalised income of those in the bottom income quintile. Another measure of income distribution, the Gini-coefficient was 26 in 2005. The Gini-coefficient would be 100 if one person had all the income but 0 if everyone had equal income.

Out of 30 European nations in 2005, Iceland was one of three nations with the lowest at-risk-of-poverty rate. Six nations had lower income quintile share ratio than Iceland, one had equal ratio and 22 had a higher ratio. Six European nations had a lower Gini-coefficient in 2005, two had an equal Gini-coefficient and 21 nations had a higher coefficient.

Risk of poverty and income distribution 2003-2005 - Statistical Series

Statistics