Inequality of income distribution: a comparative analysis for developed and developing economies

This study examines the changes in income distribution across selected countries from 2015 to 2022, with a focus on the significant impact of the Covid-19 pandemic (2020-2021) on global income distribution. The data used in this analysis was sourced from the World Inequality Database, specifically looking at household income adjusted for after-tax earnings. Each household's income was allocated among adults aged 20 and older. The data were organized into ten income groups, creating ten distinct income levels for comparison. The study includes ten countries comprising five developed countries, namely; France, Germany, Netherlands, Italy, and the United Kingdom and five developing countries, namely; Czechia, Hungary, Romania, Greece and Turkiye. The analysis spans the eight-year period from 2015 to 2022. All countries implemented various social programs to support those people most affected by the Covid-19 pandemic. Developed countries generally succeeded in protecting and restoring their pre-pandemic income distribution. In contrast, developing countries faced challenges with their social programs. Although the developing countries were successful in increasing their overall national income, they struggled to restore their pre-pandemic income distribution. An income transfer occurred from the bottom 20% and the middle 60% to the top 20% in these developing nations. By 2022, the average income per capita for the bottom 10% in developing countries was $9,500 while the top 10% was $141,000 resulting in a 14.8-fold difference. In developed countries, these figures were $25,700 for the bottom 10% and $160,400 for the top 10%, yielding a 6.2-fold difference.