The Inequality Myth?
Finland's Gini coefficient barely moved in 20 years - yet everyone believes inequality is exploding
Eriarvoisuusmyytti - Gini-kerroin pysyi vakaana vuosikymmeniä
The Data vs The Narrative
Gini coefficient: 25.6 (2000) → 27.7 (2024) - only 2 points in 24 years
Despite constant media coverage of "growing inequality," Finland remains one of the world's most equal countries. What's driving the disconnect?
💬 User Prompt
🔧 MCP Tool Calls
// Step 1: Search for income distribution statistics
search_statistics({ query: "tuloerot gini" })
// Step 2: Get table metadata
get_table_metadata({ tableId: "statfin_tjt_pxt_11x3.px" })
// Step 3: Query Gini coefficient and income ratios
query_table({
tableId: "statfin_tjt_pxt_11x3.px",
selections: [
{ variable: "Tulokäsite", filter: "item",
values: ["SL1TJKT"] }, // Disposable income
{ variable: "Tiedot", filter: "item",
values: ["Gini", "S90S10", "S80S20"] }, // Gini, P90/P10, P80/P20
{ variable: "Vuosi", filter: "item",
values: ["1990", "1995", "2000", "2005", "2010", "2015", "2020", "2024"] }
]
})📊 Gini Coefficient: The Boring Truth
🌍 Nordic Comparison: Still Among the Most Equal
📋 Income Distribution Metrics
| Year | Gini (%) | S90/S10 | S80/S20 | Top 10% Share | Bottom 10% Share |
|---|---|---|---|---|---|
| 1990 | 21.2 | 4.8 | 3.0 | 19.8% | 4.1% |
| 1995 | 22.8 | 5.2 | 3.2 | 20.5% | 3.9% |
| 2000 | 25.6 | 5.9 | 3.6 | 22.1% | 3.7% |
| 2005 | 26.7 | 6.1 | 3.7 | 22.8% | 3.6% |
| 2010 | 26.8 | 6.0 | 3.7 | 22.5% | 3.7% |
| 2015 | 26.1 | 5.8 | 3.6 | 22.0% | 3.8% |
| 2020 | 27.0 | 6.0 | 3.7 | 22.4% | 3.7% |
| 2024 | 27.7 | 6.2 | 3.8 | 23.0% | 3.6% |
Major jump was 1995-2000 (Nokia stock options). Since 2000, almost no change.
⚡ Why It Feels Like Inequality Is Growing
Housing Wealth
Gini measures income, not wealth. Housing prices in Helsinki doubled while rural homes lost value. Wealth gap is growing.
Not in Gini
Generational Gap
Boomers own homes, pensions secured. Young adults face student debt, rent, precarious work. Same Gini, different lived experience.
Hidden in averages
Visibility of Wealth
Instagram shows luxury lifestyles. Media covers billionaires. Relative deprivation feels worse even when absolute income rises.
Perception shift
What The Data Actually Shows
Good news:
- Bottom 10% income rose faster than inflation
- Poverty rate stable at 12% (EU-SILC definition)
- Social transfers still effective
- Finland still top-10 most equal in OECD
Concerns:
- Top 1% income share grew 50% since 1990
- Capital income taxed less than labor
- Young adult poverty increasing
- Regional inequality growing
The 1995-2000 Jump: What Happened?
Gini jumped 4 points in 5 years - the only major shift in 60 years. Causes:
- Nokia stock options: Created thousands of millionaires overnight
- Capital income tax reform: Flat 28% rate (vs progressive labor tax)
- Financial deregulation: Made investment income more common
- Recession recovery: Benefits to those already employed
💥 The Political Debate
Left view:
"Gini is a bad metric - it misses wealth, housing, precarious work, and generational transfers. Real inequality is exploding. We need wealth taxes, rent controls, and basic income."
Right view:
"The data shows the Nordic model works. Stop fear-mongering about inequality that doesn't exist. High taxes already redistribute plenty. Focus on growth, not division."
The uncomfortable middle: Both sides are partly right. Income inequality is stable, but wealth inequality is growing. The young are worse off than their parents at the same age. The question is whether income redistribution can fix a housing wealth problem.
ℹ️ Metadata
- Table ID
- statfin_tjt_pxt_11x3.px
- Source
- Statistics Finland - Income distribution
- Definition
- Gini coefficient of equivalised disposable income
- Time Range
- 1966-2024