These 15 countries have the widest gaps between rich and poor

But income inequality is not a uniquely American issue. Nations from all six populated continents have massive wealth gaps between their richest ... MONEYThese15countrieshavethewidestgapsbetweenrichandpoorGrantSunesonandSamuelStebbins24/7WallStreetInAmericanpolitics,theissueofincomeinequalitycomesupfrequently.Aswealthcontinuestoconcentrateatthetop–nowthewealthiest10%ofAmericanhouseholdscontrolnearly75%ofhouseholdnetworth–themiddlecontinuestoshrink,andsomepreviouslythrivingmetroareashavebeenhardhitbyextremepoverty.ButincomeinequalityisnotauniquelyAmericanissue.Nationsfromallsixpopulatedcontinentshavemassivewealthgapsbetweentheirrichestandpoorestresidents.Manyofthemosteconomicallyproductivecountriesintheworldhavenotbeenabletodeviseawaytostop,orevenslow,thegrowinginequality.IncomeinequalityacrossapopulationisquantifiedusingtheGinicoefficientmeasure.OntheGiniscale,inequalityismeasuredfrom0to1,where0representsaperfectlyequalsocietyand1representsextremeinequalitywhereasingleindividualcontrolsallthewealth.Forsale:DespitestrongUShousingmarket,theseAmericancitieshavethemostvacanthomesFrugalfacts:Idon'tbuywalletsorgotoabarber:Here'smybillionaire'sguidetosavingmoney24/7WallSt.reviewedtheGinicoefficientof42countriesfromtheOrganizationforEconomicCooperationandDevelopmenttoidentifythecountrieswiththewidestgapsbetweentherichandthepoor.BothOECDmemberstatesandaffiliatedstateswereconsidered.OECDmemberstendtobehigh-incomenations,andincomeinequalitymaybeevenmorepronouncedinpoorercountriesnotconsidered.15.Latvia•Ginicoefficient:0.35(pretax+transfers:0.48)•Unemploymentrate:8.7%•GDPpercapita:$23,710•Povertyrate:16.8%•Population:1.9million •Latvia'sGinicoefficientof0.35isthe15thhighestamongthe42OECDmemberstatesandaffiliatesforwhichdataexists.TheBalticnationnarrowlyedgedoutIsraelforaspotonthislist.Latviamaystruggleinthefuturetosustaineconomicgrowthasitfacesadecliningpopulation.Thenation'spopulationcontractedbynearly0.9%overthelastyear.Thedeclineinpopulationwilllikelytranslateintoadeclineintheworkforceandlesseconomicactivity,whichcouldhampereconomicgrowthinLatvia.14.NewZealand•Ginicoefficient:0.35(pretax+transfers:0.46)•Unemploymentrate:4.7%•GDPpercapita:$35,777•Povertyrate:10.9%•Population:4.8millionHigherlaborforceparticipationcanhelpdrivedownincomeinequalityasahighershareofworkingpeoplecanreducethepovertyrateandshrinkthegapbetweenrichandpoor.YetthisisnotthecaseinNewZealand,whichstillhasamongthehighestincomeinequalitiesdespitehavingoneofthehighestlaborforceparticipationrates.Morethan70%ofNewZealandersaged15andolderareinthelaborforce–-thesecondhighestrateamongOECDmemberstatesandaffiliates13.UnitedKingdom•Ginicoefficient:0.35(pretax+transfers:0.51)•Unemploymentrate:4.3%•GDPpercapita:$39,425•Povertyrate:11.1%•Population:66.0millionThoughtheUnitedKingdomhasoneofthewidestgapsbetweenrichandpoorresidents,thecountryisdoingmorethananyotheronthislisttoreducethisinequality.Countriescanredistributewealthusingpersonalincometaxes,workers'socialsecuritycontributions,andcashtransfers.TheU.K.'sGinicoefficient,afterfactoringintheseredistributions,dropsbymorethan30%,thegreatestreductionamongnationsonthislist.12.SouthKorea•Ginicoefficient:0.36(pretax+transfers:0.41)•Unemploymentrate:3.7%•GDPpercapita:$35,020•Povertyrate:17.4%•Population:51.5millionWithjust3.7%ofitslaborforceoutofwork,SouthKoreahasoneofthelowestunemploymentratesamongwealthynations.Still,thehigh-incomeinequalityinthecountryishighlightedbythefactthat,despitethelowjoblessrate,17.4%ofSouthKoreanslivebelowthepovertyline.PresidentMoonJae-intookpowerin2017,promisingeconomicreforms,includingan11%minimumwageincrease.Themeasurehasbeenwidelycriticized,however.Whilebusinessesarguetheincreaseisstiflinggrowth,workersargueitwasnotlargeenough.WealthgapintheU.S.:These25countieshavethewidestincomegapsinthenationGenderpaygapnarrows:Butthere’sstillworktodo11.Russia•Ginicoefficient:0.38(pretax+transfers:0.49)•Unemploymentrate:5.2%•GDPpercapita:$24,417•Povertyrate:N/A•Population:144.5millionRussiaisoneofthewealthiestcountriesintheworld,butadisproportionateshareofthatwealthisconcentratedatthetop.Thecountry'sincomeinequalityislargelytheproductofitssystemofgovernment.RussiahasaCorruptionPerceptionsIndexscoreof28–tiedfortheworstamongOECDmemberstatesandaffiliatesandoneofthelowestintheworld.OligarchswithclosetiestotheRussiangovernmentcanusethoserelationshipstoearnlucrativebusinessdeals,essentiallymountinghurdlestoupwardeconomicmobilityinthecountry.10.Lithuania•Ginicoefficient:0.38(pretax+transfers:0.52)•Unemploymentrate:7.1%•GDPpercapita:$28,032•Povertyrate:16.9%•Population:2.8millionOverthepastyear,Lithuania'spopulationshrankbymorethan1.4%–thelargestdeclinebyfarofanyOECDmemberstatesandaffiliates.Apopulationdeclinecanleadtoreductionsintheworkforceandlimiteconomicgrowth–especiallyinLithuania,asmallcountrywithfewerthan3millionpeople.Ontheotherhand,awell-educatedworkforcecanhelpdrivegrowth,andLithuaniahasthehighestbachelor'sdegreeattainmentrateamongOECDmemberstatesandaffiliatesat34%.9.UnitedStates•Ginicoefficient:0.39(pretax+transfers:0.51)•Unemploymentrate:4.4%•GDPpercapita:$53,632•Povertyrate:17.8%•Population:325.1millionWithaGDPpercapitaof$53,632andanunemploymentrateof4.4%,theU.S.economyappearshealthy.ButthebenefitsofastrongeconomyarenotevenlyenjoyedbyallAmericans.Ofthe325.1millionAmericans,anestimated17.8%livebelowthepovertyline.U.S.taxesandtransfersdoarelativelypoorjoboflevelingouttheeconomicplayingfield.Whilemostnations'Ginicoefficientsdeclinebymorethan30%aftertaxesandtransfers,theU.S.Ginicoefficientdeclinesbyonlyabout23%.8.Turkey•Ginicoefficient:0.40(pretax+transfers:0.43)•Unemploymentrate:10.8%•GDPpercapita:$23,756•Povertyrate:17.2%•Population:80.7millionAlmostbydefinition,free-marketeconomieswillproducewinnersandlosers,andlikenearlyeveryothercountryonthislist,Turkey'sisalargelyfree-marketeconomy.TurkeyspansbothEuropeandAsia,andithastheworstincomeinequalityofanyEuropeancountryandthirdworstofanyAsiancountryconsidered.Inrecentyears,governmentofficialshaveleveragedtheirpowertotargetandharmpoliticalopponentseconomically.ThishasbeenfollowedbyunderminedconfidenceinTurkey'sfinancialinstitutions,severalcreditratingdowngrades,andlikely,increasedinequalityaspowerandmoneyconverge.7.Chile•Ginicoefficient:0.45(pretax+transfers:0.49)•Unemploymentrate:7.0%•GDPpercapita:$22,614•Povertyrate:16.1%•Population:18.1millionChilehasoneofthemostdevelopedandfundamentallysoundeconomiesinSouthAmerica.Italsohassomeofthecontinent'sworstincomeinequality.Justover16%ofthecoastalcountry's18.1millionresidentslivebelowthepovertyline–andmanyofthemarelikelyamongthe7%ofworkerswhoareunemployed.Chileimplementedtaxreformsin2014tohelpreduceeconomicinequality.Whateffectthesereformswillhaveoverthelongtermremainstobeseen.6.Mexico•Ginicoefficient:0.46(pretax+transfers:0.47)•Unemploymentrate:3.4%•GDPpercapita:$17,200•Povertyrate:16.6%•Population:129.2millionOnlyfiveOECDmemberandaffiliatestateshaveworseincomeinequalitythanMexico.Inthemajorityofcountriesonthislist,taxesandtransfersreduceincomeinequalitybywellover10%.InMexico,however,taxesandtransfersonlyclosetheincomegapby3.2%,thesmallestimprovementofanycountryonthislistafterIndia.GovernmentcorruptionlikelyhampersprogresstowardgreaterincomeequalityinMexicoasthecountryistiedwithRussiaasthemostcorruptonthislist.5.Brazil•Ginicoefficient:0.47(pretax+transfers:0.58)•Unemploymentrate:12.8%•GDPpercapita:$14,098•Povertyrate:20%•Population:209.3millionSlammedbyitslargest-everrecessionin2015and2016androiledbypoliticalcorruptionscandals,Brazil'seconomyhasstruggledinrecentyears.Brazilranksamongthemostcorruptcountriesonthislist.Currently,oneineveryfiveBrazillianslivesbelowthepovertyline,andabout4%ofthepopulationlivesonjust$3.20aday.JairBolsonaro,Brazil'snewpresident,tookofficeinJanuaryandpledgedtoendgovernmentcorruptionandreducestateinterventionintheeconomy.What,ifany,effectthiswillhaveonreducingincomeinequalityremainstobeseen.4.CostaRica•Ginicoefficient:0.48(pretax+transfers:0.53)•Unemploymentrate:8.1%•GDPpercapita:$15,208•Povertyrate:20.4%•Population:4.9millionCostaRicaenjoyssomeofthehighestlivingstandardsofanyCentralAmericannation–aspartiallyevidencedbyaGDPpercapitaof$15,208.Formerlydependentprimarilyonagriculture,CostaRica'seconomynowreliesmostlyontourism.Despitestableeconomicgrowthinrecentyears,thenation'spovertyratehasremainedbetween20%and25%forthelasttwodecades.Tighterbudgetshavediminishedthecountry'ssocialsafetynetinrecentyears,andrecentcreditratingdowngradescouldsloweconomicgrowthgoingforward.3.India•Ginicoefficient:0.50(pretax+transfers:0.51)•Unemploymentrate:2.6%•GDPpercapita:$6,147•Povertyrate:N/A•Population:1.3billionHometo1.3billionpeople,Indiaisthesecondmostpopulouscountryintheworldandhassomeoftheworstincomeinequality.Inthemajorityofcountriesonthislist,taxesandtransfersreduceincomeinequalitybywellover10%.InIndia,however,taxesandtransfersonlyclosetheincomegapby2.6%,thesmallestimprovementofanycountryonthislist.Withadiverseeconomyrangingfromsubsistencefarmingtomajorindustrialcompaniescompetingatagloballevel,Indiaisrapidlymodernizingandtransitioningtoamoreliberalizedeconomy.Onemajorimpedimenttoincomeequalityinthecountryisaprevailingcultureofdiscriminationagainstwomen.Fewerthanoneineveryfourwomenoverage15inthecountryparticipateinthelaborforce,comparedtoabout79%ofmenofthesameage.2.China•Ginicoefficient:0.51(pretax+transfers:0.55)•Unemploymentrate:4.4%•GDPpercapita:$14,401•Povertyrate:N/A•Population:1.4billionHavingrecentlytransitionedfromatotalitariansocialisteconomytoamoremarket-orientedone,China'seconomyisuniqueonthislist.Asaresultofthetransition,economicgrowthhasbeenrapidinrecentyears,butthecountryremainseconomicallyhamstrungbytightgovernmentcontrolsandcorruption.Likelydueinparttothecloserelationshipbetweengovernmentandbusinessinthecountry,Chinahasthethirdhighestcorruptionscoreamongthecountriesonthislist.Taxesandtransfersonlyreduceincomeinequalityby6.2%inChina.Inmostcountriesonthislist,taxesandtransfersreduceinequalitybywellover10%.1.SouthAfrica•Ginicoefficient:0.62(pretax+transfers:0.72)•Unemploymentrate:27.3%•GDPpercapita:$12,287•Povertyrate:26.6%•Population:56.7millionIncomeinequalityinSouthAfricatodayis,inlargepart,thelegacyofthegovernment'sformerpolicyofapartheid.Thepolicysegregatedthecountry'sblackmajorityfromthewhiteminoritytothegreateconomicandpoliticaldisadvantageoftheformergroup.Apartheidwasthelawofthelandfrom1948to1994,andmanyoftheeconomicdisadvantagesthatwerelawduringthatnearhalf-centuryarenowsodeeplyentrenchedthatSouthAfricahastheworstincomeinequalityofanyOECDmemberoraffiliatestate.Morethanoneineveryfourworkersinthecountryareunemployed,andfrequentlaborstrikesandskillshortageshinderthecountry'seconomicgrowthoutlook.MethodologyTodeterminethecountrieswiththemostunevendistributionofincome,24/7WallSt.reviewedpost-taxandtransferGinicoefficientspublishedbytheOECD.WealsoconsidereddataonGDPatpurchasingpowerparity,povertyrate,unemployment,GDPpercapita,aswellassocialspending(whichtheOECDdefinesas“cashbenefits,directin-kindprovisionofgoodsandservices,andtaxbreakswithsocialpurposes”)–allfromtheOECD.WealsoreviewedtheCorruptionPerceptionsIndexfromglobalcorruptionwatchdogTransparencyInternationaltogaugelevelsofpublicsectorcorruption.Allfiguresareforthemostrecentlyavailableyear.AllranksarefortheOECDmemberandaffiliatedstateswithdataavailable.24/7WallStreetisaUSATODAYcontentpartnerofferingfinancialnewsandcommentary.ItscontentisproducedindependentlyofUSATODAY.FDAreachesdealwithAbbotttoreopenbabyformulafactoryTarget'sTabithaBrowncollectionisasteptoincreaseracialequityGoingbacktotheofficewasharderthanexpectedSocialSecurityrecipientscouldgetan8.6%raiseTheDailyMoneydeliversourtoppersonalfinancestoriestoyourinbox