Incomes rise across Switzerland: Ticino stagnant

The Swiss have seen their income increase significantly in recent years, but the gap between who earns the most and who earns less has also widened slightly. Ticino stands out for having a very low average income and for a net increase in inequalities, which according to a study is due to its proximity to Italy and to the cross-border border.

The research, carried out by Banca Cler together with the BAK Economics institute, analyzed the years from 2007 to 2017. It emerged that in the time frame indicated, the median income of a household salaries and rents as well as rental income or capital increased by 3,500 francs (+ 7%) to 52,600 francs.

The highest value is that of the canton of Zug (66’100 francs), the cheapest fiscally, followed by Basel-Landschaft (59’200) and Zurich (58’500), while the lowest numbers are observed in Ticino (44 ‘ 500) and Valais (41,400).

The average income (which is most affected by those who earn very high sums) is instead higher: 68,500 francs, up by 9% in the decade in question. The number of millionaires increased significantly, rising by 52% to 330,000. This increase, however, is not explained either by inflation (which was practically nil) or by migration: it is mainly due, in addition to the positive trend in income, to the evolution of the prices of securities and real estate.

For Mats Bachmann, executive of Banca Cler, the results should not be read only in a positive key: it is true that income has risen significantly, «however, overall the inequality in its distribution has grown over time, and therefore the gap between the rich and the poor has slightly increased». The cantons with the most balanced income distribution are Uri, Aargau and Glarus; a relatively uneven situation is evident in Zug, Schwyz and Geneva.

The income of the poorest 25% of households is highest in the cantons of Zug (35,600), Aargau (33,800) and Nidwalden (33,300), while the lowest incomes are found in the cantons of Ticino (19 ‘ 200), Geneva (16,700) and Valais (CHF 9,800). The increase in distribution inequality was strongest in Geneva and Ticino, the researchers say.

The authors of the study explain the low incomes in Ticino with the close ties that the canton has with the Lombardy area: the proximity to the euro zone means that the pressure on prices and therefore also on incomes is much higher than in the Swiss average. Furthermore, more than 25% of workers in the Italian-speaking canton are cross-border commuters, who have significantly lower wage claims than those of the Swiss.

Moreover, according to international standards, the distribution of income in Switzerland is relatively balanced. Only Norway, Austria and Germany show lower disparities.