90/10 decile ratio of equivalised income

Definition: The 90/10 decile ratio is a measure of the inequality of distribution. It is determined here in relation to the distribution of equivalised income. It sets the lower limit of the equivalised income of the highest-income decile (= upper limit of the 9. The ratio of the equivalised income of the lowest-income decile. Equivalised income is a weighted per capita income per household member, which is calculated by dividing household net income by the sum of the household weights of persons living in the household. The head of the household is assigned the weight = 1, for the other household members weights of < 1 are used because it is assumed that savings can be achieved through joint management. The new OECD scale is used as a scale of equivalence to determine the respective weights. After that, the head of household is assigned a weight of 1, other household members aged 14 or more a weight of 0.5 and household members under the age of 14 are assigned a weight of 0.3. In order to form the income decile, all persons are sorted according to the level of equivalised income and divided into ten equal groups. The first decile contains the 10 percent with the lowest, the tenth with the highest equivalised income. Data source: IT.NRW, Microcensus