Poverty and Inequality Flashcards
What is relative poverty?
Disposable income of les than 60% of the median
What is absolute poverty?
Individual is living on less than $2.15 a day
How many people in the UK are in relative poverty?
15million
Income is…
a flow of earnings
Wealth is…
stock of assets
The bigger the Gini coefficient…
the more unequal the country
How is the Gini coefficient calculated?
A/(A+B)
What are the causes of wealth and income inequality within and between countries?
Education training and skills, wage rate, trade union strength, degree of employment protection, social benefits, The tax system, pension entitlements, asset ownership
Why do some argue inequality is essential in a capability system?
Provide an incentive for risk taking
Why is there initial increasing inequality on the Kuznets curve?
Industrialisation results in initially increasing inequality as workers move from agricultural to higher productivity manufacturing sector
