Macroeconomics

1. There are indication and evidence which can prove how is the income gap/disparity in Singapore has been existent, those evidence is as follow:

a) Using the Gini coefficient, which has been used to measure income inequality, it is found by Pang (1975) as well as Rao & Ramakrishna (1980) that the Gini coefficients in Singapore, have been declined in 1963 to 1975, however, the data from 2008 – 2009 DOS Report stated that the Gini coefficient has rise from 0.436 in 1990 to 0.482 in 2007 and now is at the level 0.472. From the following table and data, this report can analyze that in Singapore, the Income Gap has been increased in the past 10 years (0.442 in 2000) with now is at the level 0.472. it is only through the government intervention of Benefits and CPF distribution thus the Income Gap can be suppressed to 0.452 level.

b) It is revealed that Singapore current Mean Income is SG$ 6.830 with Median Income of SG$ 4.870, based on this fact, then it can be seen how the income distribution is biased where more than 50% of the Singaporean citizens earn and received only 60% to 70% of the total average rate established in Singapore (DOS, 2008). It is also advised based on the following table:

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That how there has been a trend of how Singaporean’s average citizens and residents (including poor households) only attain insignificant percentage of increase (accumulated change) in their monthly households income, based on the table there has been disparity on the income between the poor and the rich households.

c) In the past 10 years (1999 – 2009), all income groups of the households (employed) able to achieve significant income growth, although based on DOS (2008) findings, the income growth of the top most quintile (7-11 %) receives more than 50% of increased income growth when compared to the lowest quintile (2 – 4 %).

d) Wage Share of GDP should be considered as an indication of an income gap in Singapore as there has been findings of how...