The income of the employed population to the third quarter of this year in its different categories – employees (employees) and self-employed (employers and self-employed), with different schedules and qualifications they were up 69.6% over the past 12 months compared to year-over-year inflation in that quarter of 77.5%.
Meanwhile, if you look at the sum total of earned and non-earned income for the total population included retirement and pensions This translates into a 70.7% increase over the same quarter of 2021, according to INDEC data for the third quarter of 2022.
To this fall in real terms of income of the population was added, in statistical terms, a change in the distribution of income due to the flattening of the income pyramid, also due to the social assistance received by low-income sectors.
The distance between the poorest 10% of the population – who received 1.9% of the income – and the richest 10%, who got 31.3% of the “pie” – in one year reduced from 20 to 17 timesreturning to pre-pandemic and recession levels that started in 2018 when that distance was 18 times.
For its part, “the Gini coefficient of people’s household income per capita was 0.424 for the third quarter of 2022, while in the same quarter of 2021 it was 0.441, which shows a decrease in inequality,” according to the INDEC Report. The 0.424 is similar to that recorded in the third quarter of 2018, before the start of the recession and the outbreak of the pandemic.
The Gini coefficient is a value that varies between 0 and 1. The closer to 1, the greater the inequality in income distribution and vice versa as it approaches zero (absolute equality).
The achievement of these results, despite the higher inflation, was partially contributed by the increase in employed persons – especially informal workers – and in family income, in relation to the sharp drops in 2020 and 2021. Also due to the effect of social aids .
Employees without a pension discount increased in one year from 33.1% to 37.4% of the total, demonstrating that the recovery in employment was mainly supported by the most precarious workers.
In the case of households, income from work represented 75.7% of total income while income from work did not reach the remaining 24.3%. The weight of non-labor income is greatest for the lowest deciles of total household income.
The non-labor income of the lower income sectors is AUH and other public aid, while among the higher income sectors it refers basically to rents or fixed-term income or financial investments.
Source: Clarin
