Georgios Karamanis |||

Income inequality for this week’s #TidyTuesday. How do countries redistribute income through taxes and transfers?

Code on GitHub

A horizontal line chart showing income inequality before and after government redistribution across 30 countries, organized by world regions. Each horizontal line represents one country, starting from market income inequality (right side) and ending at disposable income inequality after taxes and transfers (left side). The x-axis shows Gini coefficients from 0.2 to 0.7, where higher values indicate more inequality. Countries are grouped into regions: Europe with 20 countries, North America (3), Asia (2), and one each from Oceania, South America, and Africa. The lines are colored by the ratio of redistribution effectiveness, with darker colors indicating countries that achieve greater inequality reduction. Notable patterns include: Belgium achieves the most dramatic reduction, cutting inequality nearly in half from 0.49 to 0.26. In contrast, Dominican Republic shows minimal change from 0.52 to 0.52 (rounded). European countries generally show stronger redistribution effects than other regions. South Africa has both the highest initial inequality (0.71) and final inequality (0.62) despite some redistribution. Most countries reduce inequality to some degree, but the magnitude varies significantly even among countries with similar starting inequality levels.

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