Income Distribution in London

June 7, 2013

(This article was first published on plausibel, and kindly contributed to R-bloggers)

Inspired by the Institute of Fiscal Studies’ “Where do you fit in” application, where people can find out their position in the UK’s income distribution, I wanted to find out how the picture in London looks like. Quite different. If you are in a very high percentile nationwide, high incomes of mainly financial sector employees in London make sure that you find yourself a couple of ranks further down. That’s my guess anyway, but I think there is little reason to doubt where the big salaries are earned.
The data are not equivalized, i.e. does not take into account number of earners and dependents in a household.

Here’s the plot. The code and info on how to get the data are available on github. The red lines mark the median (0.5 on the y axis) and the corresponding quantile. I.e. the median household income is somewhere in the £30-35K bracket (it’s £33,430).

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