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Published on Tuesday, August 4, 2020

Spain | Inequality across the nation: new data, old problems

A few days ago, the INE (Spanish National Statistics Institute) published the results of its 2019 Survey of Living Conditions using income data from 2018. The survey shows that inequality with respect to income after taxes and transfers declined once again in 2018.

Key points

  • Key points:
  • The S80/S20 ratio, which is obtained by dividing the sum of the income received by the highest-earning 20% of the population by the sum of the income received by the lowest-earning 20%, fell to 5.9 — the lowest figure since the start of the Great Recession.
  • The Gini index (in which 0 represents perfect equality and 100 represents maximum inequality), fell to 33.
  • Fundamentally, inequality in Spain is cyclical and closely linked to the unemployment rate, to which almost 80% of its evolution over time can be attributed.
  • Although inequality in Spain is much lower than in countries such as the United States, it is higher than in the most advanced European economies, with which we share a political project.
  • According to forecasts by BBVA Research, even in a scenario with outbreaks but without strict new lockdowns, the COVID-19 crisis will lead to increased unemployment and, consequently, inequality in Spain.

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