Income inequality is a persistent problem across the world, but how do top earners compare on a global scale?
While European countries have implemented policies aimed at reducing income gaps, the divide between the richest and poorest remains pronounced. A recent Eurobarometer survey found that 81% of Europeans believe income disparities are too wide, and 78% feel governments should do more to address the issue. Outside Europe, the gap is often even wider, reflecting the global challenge of wealth concentration.
Data from the LIS Cross-National Data Center provides internationally comparable figures on income levels, adjusted for purchasing power parity (PPP) in international dollars at 2017 prices. These numbers account for cost-of-living differences, offering a clearer picture of real income levels for the richest decile in each country. Only countries with data from 2016 or later are included, meaning the results highlight broad patterns rather than precise year-to-year changes.
The United States tops the rankings, with the average after-tax income of the richest 10% reaching 94,857 PPS per year. Luxembourg ranks second globally and first in Europe, followed by Switzerland. Germany and Australia complete the top five, with Canada, Austria, Norway, Iceland, and Denmark among the other countries rounding out the top 10. Belgium, the UK, Lithuania, Finland, and Spain fill out the top 20, with incomes below the 45,000 PPS mark.
Trends over the past two decades show interesting shifts. Between 2000 and 2020, the US consistently remained the country with the highest average income for the top decile, while Switzerland maintained second place. Germany has moved up in the rankings, rising from sixth to third, reflecting stronger growth in top-earner income. In contrast, the UK has experienced a notable decline. Once ranked third in 2000, it fell steadily to 14th place by 2020, indicating that the purchasing power of its wealthiest residents has weakened relative to other major economies. France also saw a decline, slipping from eighth to eleventh, and Italy fell from 14th to 20th.
Experts note that these figures highlight both the concentration of wealth among the top 10% and the varying effectiveness of national policies in protecting income levels. While European nations often rely on taxation and social programs to narrow disparities, countries like the US continue to see substantial rewards for top earners.
The data underscores a broader global challenge: while overall prosperity has grown, income gains are not equally shared, and the richest segments of society continue to accumulate wealth at a faster pace than the majority of citizens. This persistent inequality remains a key concern for policymakers and social planners worldwide.
