The data in Fig. 2.1 compares the extent of regional income disparities across select OECD countries. The 90:50 ratio measures the gap between the 90th percentile (the regional disposable income level that only 10% of the country's regions exceed) and the median (the 50th percentile). The 50:10 ratio measures the gap between the median and the 10th percentile (the regional income level below which only 10% of the country's regions fall).
Fig. 2.1 Measures of regional household disposable income inequality, by select OECD countries
| Country | 90:50 ratio (▲) | 50:10 ratio (●) |
|---|---|---|
| Norway | 1.15 | 1.20 |
| France | 1.25 | 1.35 |
| Germany | 1.30 | 1.45 |
| Japan | 1.35 | 1.50 |
| UK | 1.40 | 1.65 |
| United States | 1.50 | 1.80 |
| Canada | 1.55 | 1.85 |
| Chile | 1.65 | 2.10 |
Explain how the data in Fig. 2.1 can be used to measure the level of regional income inequality in Canada.
