Income dispersion largely originates from the labour market, which is characterised by a still high unemployment rate, a pervasive informal sector and a wide wage dispersion reflecting a large education premium for those with higher education. Wealth, and thus capital income, is also highly concentrated. The tax and system does little to reduce income inequality. It is small and dominated by non-redistributive transfer schemes, in particular contributory pensions, and consumption taxes which tend to be regressive.