Measuring Inequality

    0
    4

    Measuring Inequality

    • Wealth and income inequality can be measured in a number of ways
      • The distribution of wealth owned or income earned by a given percentage can be compared
        • It can also be compared in percentage groups, e.g. the bottom quartile shows the share of income of the poorest 25% of households
      • Another way is the 90:10 ratio, which takes the incomes of people 10% from the top and 10% of the bottom
        • This method eliminates the extremes that you get at either end
        • This ratio was 4:1 in 2006 and 1996
      • A further measure is the Gini coefficient, which can be used to make international comparisons of income inequality.
        • It is found by using a Lorenz curveLorenz Curve

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here