Social justice

Who gets what in Verdania?

Inequality, poverty and access to health care, one measure at a time and never folded into a single score. Then the same yardstick for the four economic systems.

Verdania today

The shared starting point of every experiment (year 0).

Inequality of market income (Gini)Before taxes and transfers. 0 means everyone earns the same; 1 means one person earns everything.: 0.499
Inequality of disposable income (Gini)After taxes and transfers. The gap from the market figure is what redistribution does.: 0.387
Relative poverty (below 60% of current median)People living on less than 60% of the median income.: 20.5%
Wealth held by the top 10%Share of all household wealth owned by the richest tenth.: 58.0%
Wealth held by the top 1%Share of all household wealth owned by the richest hundredth.: 20.3%
Labour share of incomeShare of national income paid as wages rather than profits.: 55.0%
People facing catastrophic health spendingPeople whose out-of-pocket health costs exceed 10% of their household's income.: 13.2%
Richest / poorest region income ratioMean income in the richest region divided by the poorest.: 1.61

The gender pay gap is zero by construction in model v0.1, because women and men are modelled identically. Mechanisms that could open a gap are planned for v0.3.

Before and after taxes and transfers

Income per person by tenth of the population: what the market pays, and what people keep after taxes, benefits and pensions. Year 1 with today's policies.

Disposable income

Four economic systems, one yardstick

Each system is a complete policy bundle that keeps its deficit within 3% of output. Figures are for year 10, each compared with keeping today's policies, with the range across uncertain assumptions.

These results depend on assumptions that economists dispute, such as how unemployment responds to the minimum wage. The methodology page shows each assumption and its evidence; the Lab lets you change any policy and see the difference. See the methodology

Recalculating…

Before and after taxes and transfers, year 1
Decile	Market income	Disposable income	Change
D1	V$ 1,791	V$ 3,243	+81.1%
D2	V$ 6,817	V$ 6,639	-2.6%
D3	V$ 6,752	V$ 9,447	+39.9%
D4	V$ 8,379	V$ 11,536	+37.7%
D5	V$ 10,139	V$ 13,263	+30.8%
D6	V$ 15,934	V$ 15,638	-1.9%
D7	V$ 20,936	V$ 18,721	-10.6%
D8	V$ 26,768	V$ 22,867	-14.6%
D9	V$ 35,925	V$ 29,666	-17.4%
D10	V$ 66,079	V$ 52,359	-20.8%

Four economic systems, one yardstick: year 10, compared with today's policies
Measure	Today's policies	AMarket-led capitalismOpen in the Lab	BRegulated social-market economyOpen in the Lab	CSocial-democratic mixed economyOpen in the Lab	DCollective-ownership economyOpen in the Lab
Median disposable income (equivalised)	V$ 16,696	V$ 16,619 −V$ 77Range: −V$ 377 to +V$ 282	V$ 17,024 +V$ 328Range: +V$ 168 to +V$ 742	V$ 17,481 +V$ 785Range: +V$ 301 to +V$ 1,417	V$ 18,001 +V$ 1,305Range: +V$ 263 to +V$ 2,126
Relative poverty (below 60% of current median)	20.6%	22.0% +1.5 ptsRange: +1.5 pts to +2.3 pts	20.1% −0.4 ptsRange: −0.4 pts to −0.1 pts	19.9% −0.7 ptsRange: −0.6 pts to +<0.1 pts	19.6% −0.9 ptsRange: −0.8 pts to +<0.1 pts
Anchored poverty (below 60% of baseline median)	16.8%	17.7% +0.9 ptsRange: +0.5 pts to +1.4 pts	15.8% −1.0 ptsRange: −1.3 pts to −0.8 pts	14.4% −2.4 ptsRange: −3.4 pts to −2.0 pts	12.9% −3.9 ptsRange: −5.0 pts to −2.2 pts
Inequality of market income (Gini)	0.500	0.507 +0.007Range: +0.005 to +0.009	0.494 −0.006Range: −0.007 to −0.003	0.486 −0.013Range: −0.016 to −0.007	0.477 −0.023Range: −0.024 to −0.012
Inequality of disposable income (Gini)	0.390	0.420 +0.031Range: +0.028 to +0.034	0.374 −0.016Range: −0.019 to −0.014	0.346 −0.044Range: −0.048 to −0.040	0.333 −0.057Range: −0.058 to −0.048
Wealth held by the top 10%	56.4%	56.5% +0.1 ptsRange: −<0.1 pts to +0.2 pts	56.3% −0.1 ptsRange: −0.2 pts to +<0.1 pts	56.2% −0.2 ptsRange: −0.4 pts to +<0.1 pts	56.0% −0.4 ptsRange: −0.6 pts to +<0.1 pts
Wealth held by the top 1%	19.3%	19.4% +0.1 ptsRange: +<0.1 pts to +0.1 pts	19.3% −<0.1 ptsRange: −0.1 pts to −<0.1 pts	19.3% −0.1 ptsRange: −0.1 pts to −<0.1 pts	19.2% −0.2 ptsRange: −0.2 pts to −<0.1 pts
Labour share of income	55.0%	52.5% −2.5 ptsRange: −4.4 pts to −1.5 pts	57.3% +2.3 ptsRange: +1.1 pts to +4.1 pts	60.0% +5.0 ptsRange: +2.5 pts to +9.2 pts	60.8% +5.8 ptsRange: +3.0 pts to +10.5 pts
People facing catastrophic health spending	13.3%	40.5% +27.2 ptsRange: +27.0 pts to +28.4 pts	9.1% −4.2 ptsRange: −4.4 pts to −4.2 pts	0.0% −13.3 ptsRange: −13.3 pts to −13.3 pts	0.0% −13.3 ptsRange: −13.3 pts to −13.3 pts
Richest / poorest region income ratio	1.62	1.70 +0.07Range: +0.06 to +0.08	1.56 −0.06Range: −0.07 to −0.06	1.48 −0.14Range: −0.15 to −0.12	1.46 −0.17Range: −0.17 to −0.13

Measure

Today's policies

AMarket-led capitalismOpen in the Lab

BRegulated social-market economyOpen in the Lab

CSocial-democratic mixed economyOpen in the Lab

DCollective-ownership economyOpen in the Lab

Median disposable income (equivalised)

V$ 16,696

V$ 16,619 −V$ 77Range: −V$ 377 to +V$ 282

V$ 17,024 +V$ 328Range: +V$ 168 to +V$ 742

V$ 17,481 +V$ 785Range: +V$ 301 to +V$ 1,417

V$ 18,001 +V$ 1,305Range: +V$ 263 to +V$ 2,126

Relative poverty (below 60% of current median)

20.6%

22.0% +1.5 ptsRange: +1.5 pts to +2.3 pts

20.1% −0.4 ptsRange: −0.4 pts to −0.1 pts

19.9% −0.7 ptsRange: −0.6 pts to +<0.1 pts

19.6% −0.9 ptsRange: −0.8 pts to +<0.1 pts

Anchored poverty (below 60% of baseline median)

16.8%

17.7% +0.9 ptsRange: +0.5 pts to +1.4 pts

15.8% −1.0 ptsRange: −1.3 pts to −0.8 pts

14.4% −2.4 ptsRange: −3.4 pts to −2.0 pts

12.9% −3.9 ptsRange: −5.0 pts to −2.2 pts

Inequality of market income (Gini)

0.500

0.507 +0.007Range: +0.005 to +0.009

0.494 −0.006Range: −0.007 to −0.003

0.486 −0.013Range: −0.016 to −0.007

0.477 −0.023Range: −0.024 to −0.012

Inequality of disposable income (Gini)

0.390

0.420 +0.031Range: +0.028 to +0.034

0.374 −0.016Range: −0.019 to −0.014

0.346 −0.044Range: −0.048 to −0.040

0.333 −0.057Range: −0.058 to −0.048

Wealth held by the top 10%

56.4%

56.5% +0.1 ptsRange: −<0.1 pts to +0.2 pts

56.3% −0.1 ptsRange: −0.2 pts to +<0.1 pts

56.2% −0.2 ptsRange: −0.4 pts to +<0.1 pts

56.0% −0.4 ptsRange: −0.6 pts to +<0.1 pts

Wealth held by the top 1%

19.3%

19.4% +0.1 ptsRange: +<0.1 pts to +0.1 pts

19.3% −<0.1 ptsRange: −0.1 pts to −<0.1 pts

19.3% −0.1 ptsRange: −0.1 pts to −<0.1 pts

19.2% −0.2 ptsRange: −0.2 pts to −<0.1 pts

Labour share of income

55.0%

52.5% −2.5 ptsRange: −4.4 pts to −1.5 pts

57.3% +2.3 ptsRange: +1.1 pts to +4.1 pts

60.0% +5.0 ptsRange: +2.5 pts to +9.2 pts

60.8% +5.8 ptsRange: +3.0 pts to +10.5 pts

People facing catastrophic health spending

13.3%

40.5% +27.2 ptsRange: +27.0 pts to +28.4 pts

9.1% −4.2 ptsRange: −4.4 pts to −4.2 pts

0.0% −13.3 ptsRange: −13.3 pts to −13.3 pts

Richest / poorest region income ratio

1.62

1.70 +0.07Range: +0.06 to +0.08

1.56 −0.06Range: −0.07 to −0.06

1.48 −0.14Range: −0.15 to −0.12

1.46 −0.17Range: −0.17 to −0.13