The data in Table 2.1 compares the extent of regional income disparities across select OECD countries. The 80:50 ratio measures the gap between the 80th percentile (the regional disposable income level that only 20% of the country's regions exceed) and the median (the 50th percentile). The 50:20 ratio measures the gap between the median and the 20th percentile (the regional income level below which only 20% of the country's regions fall).
Table 2.1 Measures of regional household disposable income inequality, by select OECD countries
| Country | 80:50 ratio | 50:20 ratio |
|---|---|---|
| Denmark | 1.12 | 1.18 |
| Sweden | 1.18 | 1.22 |
| Netherlands | 1.24 | 1.28 |
| New Zealand | 1.30 | 1.42 |
| Australia | 1.36 | 1.48 |
| South Korea | 1.42 | 1.56 |
| Italy | 1.48 | 1.64 |
| Spain | 1.54 | 1.72 |
Explain how the data in Table 2.1 can be used to measure the level of regional income inequality in Australia.
