B. Palma Ratio

The Gini coefficient doesn't capture very explicitly changes in the top 10% - which has become the focus of much inequality research in the past 10 years - or the bottom 40%, where most poverty lies. Palma ratio is the ratio of national income shares of the top 10 per cent of households to the bottom 40 per cent. If the richest 10% of the population has five times the income of the bottom 40%, a country's Palma ratio is 5. The Palma ratio has been listed in the OECD rankings of countries' inequality, and in annual UN Human Development reports, alongside the Gini.