The data in Table 3.1 compares regional disposable household income disparities across selected OECD economies. 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).
Table 3.1 Measures of regional household disposable income inequality, selected OECD countries
| Country | 90:50 ratio | 50:10 ratio |
|---|---|---|
| South Korea | 1.28 | 1.36 |
| Spain | 1.32 | 1.48 |
| Italy | 1.38 | 1.62 |
| New Zealand | 1.42 | 1.58 |
| Mexico | 1.74 | 2.25 |
Explain how the data in Table 3.1 can be used to measure the level of regional income inequality in New Zealand.
