Distribution Of Income And Wealth Flashcards
Key labour market issues U.K.
- long term youth unemployment
- low skills gap
- discrimination
- CEO pay
What is the claimant count (JSA)
People officially claiming unemployment benefits - must be actively seeking work
What is the labour force survey (LFS)
Those actively seeking hand available for work, whether or not claiming benefits
Define labour force
The number of people of working age who are able, available and willing to work
Define economically inactive
Those who are of working age but are neither in work nor actively seeking paid work
What is the employment rate
The % of the population of working age in full-time or part-time paid work
What is the unemployment rate
% of the economically active population who are unemployed
What is the working population
The number of people who are willing and eligible to work
Key drivers of U.K. population growth
- The natural rate of growth of population (births-deaths)
2. Rate of net inward migration of labour
UK Net Migration / Immigration fact
High rate of net inward migration into the U.K. economy
On key feature of the UK labour market - pay
Wide dispersion in weekly pay across different occupations and industries
Difference between income and wealth
Income is a flow of money going to factors of production vs wealth is the current value of a stock of assets owned by someone of society as a whole
What is the Lorenz curve
It gives a visual interpretation of income or wealth inequality
What does the diagonal line of the Lorenz curve represent
A situation of perfect equality of income i.e. 50% of population has 50% of income
What does the Gini coefficient condense
The entire income distribution for a single number between 0 and 1
