The Gini-index and the quintile share ratio indicate that the distribution of income in Iceland has become less equal in the years 2004 to 2009. On the other hand the at-risk-of-poverty rate has remained more or less the same during this period. It seems that low income people are in a similar situation compared to the median while the high income people are increasing their income at a higher rate.

Income distribution increased while at-risk-of-poverty rate remained stable
The Gini-index, which shows the distribution of disposable income among people in private households in Iceland, was 29.6 in 2009. The index would be 100 if the same person had all the income of the country but 0 if everyone received equal income. The Gini-index has been growing every year from 2004 when it was 24.1.

When the 20% of persons receiving the highest disposable income are compared to the 20% with the lowest disposable income (quintile share ratio) in the 2009 survey it can be seen that the highest income group has 4.2 times higher income than those who belong to the lowest income group. The quintile share ratio has developed in a similar way as the Gini-index over the period between 2004 and 2009, going from 3.4 in 2004 to 4.2 in 2009.

The at-risk-of-poverty rate was 10.2% in Iceland in 2009 and has remained stable since 2004 when it was 10%. The at-risk-of-poverty rate is defined as 60% of equivalised disposable income which takes household income into account and how many people live of that income.

European comparison
Out of 29 European countries, Iceland ranked 10 to 11 when the nations were ordered from the lowest Gini-index to the highest. Iceland was 9 to 10 out of 29 when the quintile share ratio of the countries was ranked from the lowest to the highest. It seems that in the period between 2004 and 2009 the Gini-index and the quintile share ratio have increased more in Iceland than in most other European countries.

Out of 29 countries in 2009 Iceland had the second lowest at-risk-of-poverty rate after the Czech Republic. The trend of this index differs from the other two since Iceland has consistently been among the lowest nations.

At-risk-of-poverty rate in Iceland
When we look at age and gender in Iceland it can be seen that the ratio below the poverty threshold in 2009 is highest for women 18 to 24 years old or 20.6% and with women 65 and older, 18%. The rate below the threshold was lowest for people 50 to 64 years old, 5 to 6%.

A relatively high proportion of single people, with or without children are below the poverty threshold compared to other household types. The same can be said about those who rent their apartments compared to home owners.

Statistical Series
Statistics Iceland has published an issue in the Statistical Series about risk of poverty and income distribution 2004 to 2009. The results are from The European Survey of Income and Living Conditions (EU-SILC) but the survey is conducted in all EU-countries, Iceland, Norway and Switzerland.

Implementation
The sample for the 2009 survey was 4.144 households. After excluding those who are deceased and residing abroad the net sample was 3.972 households. Responses were received from 2.903 households which is 73% response rate. These households produced information from 8.545 persons. The data collection period was from February to May 2009. Information on income was received from tax registers of the year before. The information on income for the 2009 survey is from the tax register of 2008 which is the most recent information available.

Risk of poverty and income distribution 2004-2009 - Statistical Series