This graph shows pay inequality in each London borough by
comparing the ratio of top and bottom pay. It compares gross hourly pay for the
top 20% with the bottom 20% in each borough. The higher the pay ratio, the more
unequal earnings are in that borough.
The pay ratio in Tower Hamlets is 3.33, significantly higher
than any other borough. This means that in Tower Hamlets someone just in the
top 20% has pay 3.33 times higher than someone just in the bottom 20%. Hounslow
has the next highest ratio, with 2.88, followed by Westminster with 2.76.
Therefore in these boroughs, hourly pay for the top 20% of earners is much
higher than for the bottom 20%.
The most equal borough by this measure is Croydon, where the
pay ratio is 2.29, followed by neighbouring Merton where it is 2.31, and
Wandsworth where it is 2.33.
The difference between boroughs in this measure is mostly
due to the top 20% of earners. The borough with the lowest hourly pay at the 20th
percentile is Enfield at £8 and the borough with the highest is Islington at
£12, a difference of £4. The difference in hourly pay at the 80th
percentile between boroughs is much larger, going from £19 in Waltham Forest to
£38 in Tower Hamlets, a difference of £19 .
This measure differs from income inequality because it looks
at the difference in hourly pay between those at the top and the bottom for
individual employees rather than households. This measure does not take into
account the earnings of others in the household or any other sources of income.
The data comes from the Annual Survey of Hours and Earnings which means
contrary to the income inequality measure it excludes those who are