Inequality Flashcards
1
Q
Income inequality
A
when the best paid workers take home more income than the rest of the country’s workers
2
Q
Lorenz curve axis
A
- y-axis - cumulative percentage of income
- x-axis - cumulative percentage of population
3
Q
Diagonal line called?
A
perfect income equality
4
Q
What does the lorenz curve do?
A
measures income inequality across countries
5
Q
If curve closer to diagonal line…
A
less income inequality
6
Q
The higher the gini coefficient…
A
the higher the income inequality
7
Q
Gini coefficient of 0
A
perfect income equality
8
Q
Wealth inequality
A
when wealth is shared unequally between a population
9
Q
Changes in inequality
A
- minimum wage rates
- assortative mating
- social benefits and tax
- ‘r>g’ hypothesis
- inheritance
