Field: Governance and social capital

Subfield: Material well-being

Details:

The income quintile share ratio or the S80/S20 ratio is a measure of the inequality of income distribution. The higher its value, the more unequal the distribution of income among the members of the community. The income quintile ratio shows one of the essential aspects of good governance: ensuring wealth to most citizens, as a premise and indicator of development. When income distribution is unequal (as in the case of Romania), numerous reforms are needed at social and economic level.

In 2000, the income quintile share ratio was 4.5: the 20% of the “richest” Romanians had 4.5 times the income of the “poorest” 20%. Between 2000 and 2008, this ratio almost doubled, reaching 8.1. After 2008 the ratio dropped to 6.2, in the context of the economic crisis. Since 2012, the ratio has increased again, reaching 8.3 in 2015 (respectively 7.2 in 2016), 1.5 times higher than EU average (5.2 in 2015 and 5.0 in 2016).